20th Apr 2020 09:59
(Alliance News) - Polymetal International PLC on Monday said revenue grew in the first quarter, thanks to the higher price of gold, despite sales volumes being hurt by Covid-19 disruptions.
The precious metals mining company said gold equivalent production grew by 5% in the three months to the end of March to 391,000 ounces as strong performances at the Kyzyl, Svetloye and Varvara mines more than offset planned grade declines at Omolon and Voro.
However, sales volumes decreased by 7% during the period due to the coronavirus-related slowdown of concentrate shipments to China. These have fully normalised since early March, Polymetal said.
Revenue in the first quarter increased by 9% year-on-year to USD494 million on the back of higher gold prices.
Polymetal said it remains committed to its dividend policy and does not intend to change the previously announced final dividend recommendation of USD0.42 per share for 2019, which is due to be paid on May 29. This will take the total dividend paid for 2019 to USD0.82 per share.
Looking ahead, the company confirmed its 2020 production guidance of 1.6 million ounces of gold equivalent.
"The first quarter was a strong start to the year for the company, delivering steady performance amidst unprecedented global disruption and uncertainty", said Chief Executive Vitaly Nesis.
"In light of the global Covid-19 pandemic we have been taking significant measures to keep our employees, suppliers, contractors, and other counterparties healthy and safe, and to maintain continuous operations. So far we have been proven to be successful in mitigating any impact," added Nesis.
Polymetal shares were trading 1.2% lower in London on Monday at 1,503.50 pence each.
By Evelina Grecenko; [email protected]
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