22nd Apr 2021 10:39
(Alliance News) - Polymetal International PLC on Thursday said revenue and output grew in its first-quarter, though the gold miner cautioned virus-related construction cost inflation is still a "pressing concern".
Shares in the company were 2.1% higher at 1,611.50 pence each in London on Thursday morning, one of the best large-cap performers.
Gold production rose 4% annually in three months to March 31 to 337,000 ounces, from 324,000 ounces. Gold equivalent production rose 3% to 375,000 ounces from 365,000 ounces a year earlier.
Polymetal affirmed its full-year target of gold equivalent production of 1.5 million ounces.
"In [first quarter] 2021, Polymetal delivered strong production, strong free cash flow, and steady progress across development projects," Chief Executive Officer Vitaly Nesis said.
Revenue during the period surged 20% to USD593 million from USD494 million in the year prior. This was on the back of higher gold and silver prices, Polymetal noted.
Nesis added: "Covid-related construction cost inflation remains a pressing concern despite gradual improvements in the epidemiological situation."
Construction and development work at the Nezhda and POX-2 assets, both in Russia, also progressed during the quarter.
This was despite "continued tightness in the construction contractor market" and virus-related travel curbs.
"Nezhda is scheduled to achieve mechanical completion on September 1, 2021 and produce first concentrate on November 1, 2021," Polymetal added.
By Eric Cunha; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
POLY.L