27th Aug 2014 08:13
LONDON (Alliance News) - Polymetal International PLC Wednesday said revenue in the first half inched up, but it swung to a net profit after impairment charges and foreign exchange losses that hit its results last year weren't repeated.
The gold, silver and copper-mining exploration and production company, with operations in Russia and Kazakhstan, said a sharp fall in gold and silver prices year-on-year was offset by strong growth in gold sales volumes. It said its performance was also driven by a strong cost control and production growth.
"Delivering robust cost performance, free cash flow and dividends in the current market environment reaffirms the resilience and strength of our strategy focused on capital discipline," said Chief Executive Vitaly Nesis in a statement.
Polymetal reported net earnings in the six months to June 30 of USD100 million, compared with a net loss of USD255 million in the first half of 2013, when it recorded non-cash foreign exchange losses and impairment charges.
The company declared an interim dividend of USD0.08 per share, compared with a dividend of USD0.01 per share last year.
Revenue in the first half rose only 0.8% to USD727 million, from USD721 million last year. It said a 10% and 21% decline in the average realised price of gold and silver, respectively, was offset by 12% growth in the volume of gold equivalent sold.
The company reduced its full-year total cash cost guidance to between USD650 and USD700 per gold equivalent ounce, and all-in cash costs to between USD950 and USD1,000 per gold equivalent ounce on the back of continued weakness of the Russian ruble, in which it has operating costs, and expectations of a continued strong operating performance.
"This guidance could be further revised downwards should the weakness in the ruble persist during the rest of the year," it said.
Polymetal shares were trading at 533.00 pence Wednesday morning, up 1.9%.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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