16th Oct 2014 07:48
LONDON (Alliance News) - Polymetal International PLC Thursday reported higher production levels of gold and silver for the first three quarters of the year compared to 2013, despite the third quarter itself seeing decreases in production and sales across the board.
Overall, Polymetal generated USD451 million in the third quarter, down from USD518 million a year earlier. For the first three quarters, revenue totalled USD1.18 billion, versus USD1.21 billion in 2013, a 3% reduction.
The FTSE 250 gold, silver and copper miner reported net debt of USD1.3 billion at September 30, an increase of USD294 million due to the additional USD318.5 million used for the acquisition of the Kyzyl gold project in Kazakhstan in September.
"The company is further reducing its full-year total cash cost guidance to USD625 - USD675 per gold equivalent ounce, and all-in cash cost to USD925 - USD975 per gold equivalent ounce," it said.
During the third quarter ended September 30, Polymetal produced 388,000 ounces of gold equivalent, down from the 413,000 ounces reported in the same period in 2013. Production of gold equivalent is up for the first three quarters to 1.0 million ounces from 972,000 ounces in 2013. Production growth from last year was mainly driven by increased throughput at Dukat, Omolon and Mayskoye in Russia, it said.
Gold sales also saw a slight dip to 254,000 ounces in the third quarter, down 4% from 266,000 ounces in 2013. For the first three quarters, gold sales are up to 606,000 ounces compared to 539,000 ounces in 2013, a 12% increase.
"The company reaffirms it is on track to exceed its original gold equivalent production guidance of 1.3 million ounces for 2014... 1.35 million ounces of gold equivalent in 2015 and 1.40 million ounces of gold equivalent in 2016," said Polymetal in a statement.
Silver production increased by 2% in the third quarter to 7.7 million ounces from 7.6 million ounces in 2013. For the nine months ended September 30, Polymetal produced 23.2 million ounces of silver, compared to 21.5 million ounces in 2013.
Silver sales decreased in the third quarter to 7.3 million ounces from 8.7 million ounces in the same quarter in 2013. In the first three quarters, silver sales have totalled 21.3 million ounces, up from 19.6 million ounces a year before.
Copper production saw a sharp drop to 104 tonnes in the third quarter from 1,254 tonnes in the same period in 2013. For the nine months copper production is down to 1,631 tonnes from 4,092 tonnes a year earlier. Polymetal sold no copper in the third quarter, with sales for the nine month period down 94% to 300 tonnes from 4,980 tonnes in 2013.
"Polymetal has maintained its strong operating track record this year while delivering on its key strategic priorities.The successful completion of the Kyzyl acquisition in September is complemented by solid performance across our mines and resulting strong free cash flow generation, which will allow us to maintain an optimistic outlook on operating and financial results for the year," said Chief executive Vitaly Nesis
Polymetal shares were down 0.1% to 478.00 pence per share Thursday morning, reversing opening gains to 487.00p.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
POLY.L