18th Apr 2018 10:05
LONDON (Alliance News) - Polymetal International PLC said Wednesday volume growth, higher commodity prices, and lesser impact from seasonal refinery closures led to a 19% rise in revenue and 8% rise in gold production for the first three months of the current year.
The precious metals mining company recorded revenue of USD354 million for the three months to March-end. It produced 295,000 ounces of gold equivalent, up 5% from the same period last year. Strong performances at its Albanzio and Svetloye mines in Russia and Varvara in Kazakhstan helped the production growth.
Gold production was up 8% to 214,000 ounces while silver production was down 3% to 6,000 ounces from the previous quarter.
Polymetal's net debt increased to USD1.58 billion from USD1.42 billion at the end of December.
The company remains on track to produce 1.55 million gold equivalent ounces in 2018 and to meet its annual cost guidance of all-in sustaining costs of USD875 to USD925. The cost guidance, however, remains contingent on the rouble/dollar exchange rate dynamic, "which has a significant effect on the group's operating costs".
Polymetal also said that there was a fatal accident at its Kapan operation where a miner died from gas poisoning. Polymetal said: "The management team are currently developing a comprehensive action plan aimed at mitigating the risks associated with air quality and efficiency of ventilation in underground mines." Additional air monitoring equipment has been purchased and the introduction of remote air quality sensors has been placed throughout its operations.
Polymetal Chief Executive Vitaly Nesis said: "We got off to a steady start in 2018 with stable production results at all our mines. The successful launch of Kyzyl will demonstrate Polymetal's ability to successfully deliver on new projects while continuing to efficiently run our existing operations".
Shares in Polymetal were up 6.7% Wednesday morning at 665.50 pence each.
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