7th Jun 2007 11:00
OJSC Polyus Gold07 June 2007 For immediate release. Moscow, June 7th , 2007 OJSC Polyus Gold Released its Audited Consolidated Financial Statements in Compliance with International Financial Reporting Standards (IFRS) OJSC Polyus Gold (hereinafter the Group) (RTS, MICEX and LSE - PLZL), Russia'sleading gold producer, today released its consolidated annual financialstatements for the year ended 31 December 2006, prepared in accordance with theInternational Financial Reporting Standards (IFRS). The consolidated annualfinancial statements have been audited in accordance with the InternationalStandards on Auditing by Deloitte & Touche. In the year ended 31 December 2006 the Group demonstrated positive developmentwith all the key financial indicators: • Refined gold produced amounted to 1 215 k oz which is a 17% increasecompared to 1 038 k oz produced in 2005. • Sales in physical volumes showed a 16% increase to 1 216 k oz comparedto 1 049 k oz last year. • Revenues grew to US$735 million demonstrating a 55% year-on-yearincrease. The major factors that influenced the growth in the Group's revenueswere: • the 34% year-on-year increase in the average gold sales price achievedof US$604 per ounce; • the increase in physical volumes of gold sold, which resulted from theconsolidation of OJSC Aldanzoloto GRK and OJSC SVMC acquired in 2005, as well asfrom the increase in gold production at Olympiada mine. • Gross profit amounted to US$312 million showing a 53% increasecomparing to US$204 million in 2005. • Operating profit demonstrated a 78% increase to US$212 million ascompared to US$119 million in 2005. • Profit for the year increased to US$1,157 million comparing to US$112million last year due to the income from the Group's investment activities. • Adjusted EBITDA demonstrated a 57% growth to US$299 million ascompared to US$191 million in 2005. • Total cash costs in 2006 amounted to US$278 per ounce as compared toUS$209 last year. Cash operating costs increased by 50% and equaled US$348 million, compared toUS$232 million in 2005. Consumables and spares, as well as labour remained themost significant components of the Group's cash operating costs. The key factors affecting the Group's costs in 2006 were as follows: • consolidation of the subsidiaries acquired in 2005, OJSC AldanzolotoGRK and OJSC SVMC, with higher production costs; • increase in cost of fuel, consumables and spares due to the increasein purchase prices and increase in usage of these items at Olimpiada mine, whichresults from the increased mining of refractory sulfide ores; • 4% strengthening of Russian Rouble in relation to the US Dollar. The complete version of the audited consolidated financial statements of theGroup for the year ended 31 December 2006, prepared in accordance with IFRS, isavailable on the Company's web-site under Investor Relations / Reports /Financials. On Thursday, June 7, 2007 Polyus Gold to hold a conference call on theannouncement of the audited financial statements for the year ended 31 December2006. The conference call is scheduled for 5 p.m. Moscow time (9 a.m. NY time, 2 p.m.London time). To join the conference call please dial: (888) 428-4472 (from US), (612) 288-0340 (outside of US) The playback of the conference call will be available at: (800) 475-6701 (from US), (320) 365-3844 (outside of US) with the password 876152, for the duration of two weeks starting from 8.30 p.m.Moscow time, 00.30 p.m. NY time, 5.30 p.m. London time) June 7, 2006. Note for editors Polyus Gold is the largest gold producer in Russia. In 2006 its gold outputtotalled 1.2 million ounces. Headquartered in Moscow, Polyus Gold's operatingmines and development/exploration projects are located in five major gold miningregions of Russia - Krasnoyarsk, Irkutsk, Magadan, Amur regions and the Republicof Sakha (Yakutia). For further information please contact Denis Davydov, Head of Investor and Public Relations Polyus GoldTel.: +7 (495) 641 33 65E-Mail: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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