29th Jan 2015 09:05
LONDON (Alliance News) - Polymetal International PLC Thursday said production and sales rose year-on-year in the fourth quarter and for 2014 as a whole, but full-year revenue slightly decreased due to weaker commodity prices.
In the three months ended December 31, the company produced 391,000 ounces of gold equivalent, a 26% rise from a year earlier, whilst gold production rose by 41% to 299,000 ounces from 212,000 ounces. Silver production fell by 3% to 5.5 million ounces from 5.7 million ounces.
Sales also rose during the quarter, with gold sales up 26% year-on-year to 337,000 ounces, and silver sales rose by 4% to 8.1 million ounces year-on-year. Sales generated USD513 million in revenue during the period, a 4% rise from the USD492 million a year earlier.
For the full year 2014, the miner increased gold equivalent production to 1.43 million ounces, a 12% rise from 2013 and also exceeding the company's revised guidance of 1.30 million ounces by 5%. The increase was mainly driven by a ramp up at the Mayskoye field and improvements at the Dukat and Omolon plays.
Gold production for the year rose by 17% year-on-year to 945,000 ounces, whilst silver production increased by 5% to 28.7 million ounces.
Production in 2015 and 2016 is set to fall slightly to 1.35 million ounces of gold equivalent in each year.
Full-year 2014 gold sales rose by 15% to 943,000 ounces and silver sales increased by 7% to 29.3 million ounces, generating USD1.68 billion in revenue in 2014, a 2% drop from USD1.71 billion in 2013.
The company's total dividend payment for 2014 was USD0.36 per share, which is USD149 million in total.
Net debt at the end of the year stood at USD1.24 billion, a USD83 million reduction since 2013. Polymetal said it "continued to generate free cash flow driven by strong operating and cost performance."
Polymetal said it continues to benefit from the depreciation of the Russian rouble against the dollar. The company's total cash cost in 2014 was USD625 to USD675 per gold equivalent ounce, with all-in sustaining cash costs totalling USD900 to USD950 per ounce.
In 2015, total cash costs are set to fall to between USD575 to USD625 per ounce, with all in sustaining costs falling to USD750 to USD800 per ounce.
Polymetal has budgeted USD240 million in capital expenditure for 2015, which will include exploration, capitalised stripping and spending on the Kyzyl project. However, it warned the budget is very dependent on the exchange rate and inflation in Russia, so this could increase in the future.
Polymetal shares were down 0.2% to 589.00 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
POLY.L