20th Oct 2015 06:46
LONDON (Alliance News) - Polymetal International PLC Tuesday said revenue was down in the first nine months of 2015, as increased gold and silver sales failed to offset lower world metal prices, though the company reaffirmed it is on track to hits its full-year production guidance.
The Russian gold miner generated USD402.0 million in revenue in the third quarter of 2015, down 11% year-on-year from USD451.0 million. For the first nine months of 2015, Polymetal made USD1.05 billion in revenue which also was down by 11% from USD1.24 billion a year before.
That revenue came from the sale of 261,000 ounces of gold in the third quarter of 2015, up 3% from 254,000 ounces a year earlier, pushing nine-month sales to 614,000 ounces from 606,000 ounces.
Silver sales in the third quarter rose 15% year-on-year to 8.4 million ounces from 7.3 million ounces, pushing nine-month production to 22.4 million ounces from 21.3 million ounces.
Polymetal achieved its first copper sales in the recent third quarter of 300.0 tonnes.
The sales came from 429,000 ounces of gold equivalent production in the third quarter of 2015, up 10% year-on-year from 388,000 ounces. That pushed production for the first nine months of 2015 to 1.1 million ounces compared to 1.0 million ounces.
Polymetal said it remains in a "strong position" to meet its full-year guidance to produce 1.35 million ounces of gold equivalent in 2015 at a cash cost between USD525 to USD575 per ounce and an all-in cost of USD700 to USD750 per ounce.
The company also reaffirmed its guidance for 2016 to produce another 1.35 million ounces before pushing this up to 1.4 million ounces in 2017.
Polymetal's net debt at the end of the third quarter had risen 2% to USD1.26 billion from the USD1.23 billion at the end of September 2014.
By Joshua Warner; [email protected]; @JoshAlliance
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