22nd Oct 2020 10:06
(Alliance News) - Polymetal International PLC on Thursday posted a significant jump in revenue for the third quarter of 2020 as it reiterated its production guidance for 2020 through to 2022.
Shares in the FTSE 100 precious metals mining company were trading 1.0% higher at 1,784.00 pence each on Thursday morning in London.
For the three months ended September 30, Polymetal posted revenue of USD884 million, up 35% year-on-year on the back of higher gold and silver prices as well as increased sales volumes. Gold equivalent production for the quarter increased by 7% to 477,000 ounces, driven by strong contributions from the Omolon, Varvara, and Kyzyl mines.
For the first nine months of 2020, gold equivalent output increased 5% year-on-year to 1.2 million ounces. Revenue was up 26% to USD2.02 billion. The company stated the lag between gold production and sales - mainly at Varvara and Kyzyl - is expected to close in the fourth quarter of 2020
Looking ahead, Polymetal said it is on track to meet its full-year 2020 production guidance of 1.5 million ounces gold equivalent, also reiterating its production guidance for 2021 and 2022 of 1.5 million ounces and 1.6 million ounces gold equivalent respectively. However, it warned Covid-related risks remain a key source of uncertainty.
Net debt as at the end of September was USD1.61 billion, marking a reduction of USD80 million.
By Ife Taiwo; [email protected]
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