30th Mar 2015 07:42
LONDON (Alliance News) - Polymetal International PLC Monday said its pretax loss narrowed in 2014, despite booking a huge loss on foreign exchange caused by the depreciation of the Russian rouble, as lower cash costs and increased production offset a fall in commodity prices.
The FTSE-250 precious metals miner producing in Russia and Kazakhstan reported a pretax loss of USD137.9 million for the year ended December 31, narrower than the USD157.6 million loss a year earlier, despite the company recording a USD559.3 million loss on foreign exchange caused by the depreciation of the rouble against the dollar. Polymetal had recorded a USD201.1 million impairment charge in 2013, which was not repeated in 2014.
Earnings before interest, tax, depreciation and amortization rose by 33% to USD159 million from USD120 million, driven predominantly by a strong cost performance and as production growth offsett the decline in commodity prices.
Polymetal intends to pay a final dividend of USD0.13 per share, bringing the total dividend for 2014 to USD0.41 per share.
Revenue dropped 1% to USD1.69 billion from USD1.70 billion as an increase in production and lower cash costs offset a fall in commodity prices during the year.
Production increased by 12% to 1.43 million ounces of gold, exceeding the company's guidance of 1.365 million ounces by 5%, driven by the full ramp-up of Mayskoye and strong operational delivery at Dukat and Omolon, it said.
The company achieved an average gold price of USD1,231 per ounce in 2014, down 7% from a year earlier when it achieved USD1,326 per ounce, whilst silver prices dropped by 18% to USD17.7 per ounce from USD21.6.
The company's total cash cost in 2014 averaged USD634 per ounce, down 15% from USD745 a year earlier and all in cash costs fell by 18% to USD893 per ounce from USD1,086.
In 2015 and 2016, Polymetal is aiming for production of 1.35 million ounces per year and Polymetal said its total cash cost should fall to between USD575 and USD625 per ounce with all in cash costs dropping to between USD750 to USD800 per ounce.
In 2015, Polymetal will spend a total of USD240 million in capital expenditure, higher than the USD223 million spent in 2014. The 2015 budget includes exploration and spending on the Kyzyl project, but said the guidance is "heavily dependent" on the exchange rate between the dollar and the rouble, inflation in Russia and oil prices.
Polymetal shares were up 0.4% to 566.00 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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