11th Mar 2019 08:23
LONDON (Alliance News) - Russian miner Polymetal International PLC had a strong 2018 on both an operational and financial basis, the company said on Monday.
Polymetal already had reported 2018 production at the end of January, showing gold equivalent production rising 9% to 1.6 million ounces, above guidance of 1.5 million ounces.
Gold production rose 13% to 1.2 million ounces, with silver down 6%, copper up 43%, and zinc output rising 12%.
The firm's revenue for 2018 has climbed 4% to USD1.88 billion, and adjusted earnings before interest, tax, depreciation, and amortisation climbed 5% to USD780 million.
Net earnings were flat at USD355 million, though on an underlying basis rose 19% to USD447 million.
Polymetal will be paying a 31 US cent final dividend, taking the 2018 total to 48 cents, up 9.1% from 44 cents.
"2018 was a year of strong operating and financial results, including solid cost performance and smooth ramp-up of Kyzyl", said Chief Executive Vitaly Nesis.
"We have also advanced our long-term development pipeline, continued to generate free cash flows and pay substantial dividends."
The average gold price in 2018 fell 2% for Polymetal to USD1,226 per ounce, and the average silver price 8% to USD14.8 per ounce.
Polymetal's free cash flow was 23% higher at USD176 million, while net debt has risen 7% to USD1.52 billion.
All-in sustaining costs for 2018 were 861 per ounce, from USD893 per ounce in 2017.
Polymetal in January reiterated 2019 and 2020 guidance of between 1.55 million and 1.6 million gold equivalent ounces, with all-in sustaining costs of between USD800 to USD850 per ounce and capital expenditure around USD380 million.
On Monday, Polymetal also said former Gold Fields Ltd chief executive Ian Cockerill will be joining as a non-executive director and chair from April 23, when it holds its annual general meeting.
Chair Bobby Godsell will depart at the AGM, and Non-Executive Jonathan Best also will leave at the meeting.
Polymetal shares were 0.4% lower on Monday at a price of 853.00 pence each.