21st Jan 2016 08:13
LONDON (Alliance News) - Polymetal International PLC said Thursday that it exceeded its original gold equivalent production guidance in 2015, and reconfirmed its production guidance for the coming two years.
The Russian and Kazakhstan-focused previous metals producer said it had produced 1.40 million ounces gold equivalent in the year, which exceeded its original production guidance of 1.35 million ounces for the year.
Gold production was down 9% compared to the previous year, whilst silver production was up 12%, and likewise gold sales were down 8% whilst silver sales rose 6%.
The company said that, given the persistent change in the gold/silver market price ratio, it has decided to change the ratio used in presenting gold equivalent production to 1/80 from 1/60.
Polymetal reiterated guidance for gold equivalent production of 1.23 million ounces in 2016, and 1.30 million ounces for 2017.
"Polymetal has delivered consistent operating performance against the backdrop of weak commodities prices, maintaining robust free cash flow and dividend payments to our shareholders," said Chief Executive Officer Vitaly Nesis in a statement.
"In the year ahead, we will focus on safety and consistent operational delivery at our existing mines, as well as moving Kyzyl towards production in 2018," Nesis added.
Shares in Polymetal were up 0.2% at 524.50 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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