12th Oct 2007 16:21
OJSC Polyus Gold12 October 2007 For immediate release Moscow, 12 October 2007 Polyus Gold releases condensed consolidated financial statements for H1 2007. OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer,today releases its condensed consolidated financial statements for the sixmonths ended 30 June 2007 prepared in accordance with International FinancialReporting Standards (IFRS). The financial statements have been reviewed inaccordance with International Standard on Review Engagements by Deloitte &Touche. For the first half of 2007 the revenues of OJSC Polyus Gold and its subsidiariesincreased by $12 million (4%) as compared to the first six month of 2006 and amounted to $309 million. This is stated in the condensed consolidated financialstatements of OJSC Polyus Gold and its subsidiaries for the six months ended 30June 2007. The increase in Group's revenues is mainly a result of the 4%increase of the average gold price from $590 in the first half of 2006 to $659in the first half of 2007. Cost of gold sales in the first half of 2007 increased by US$ 39 million (23%)period-on-period and amounted to $ 204 million. This increase resulted primarilyfrom the increase in stripping works (by $27 million or 16% period-on-period) atVostochny pit of Olimpiada mine aiming at expanding the pit walls. The expansionof Vostochny pit at Olimpiada will help maintain the stable level of productionat the mine in the long run. In accordance with IFRS, stripping costs arewritten off as incurred. Group's gross profit decreased by $27 million (21%) year-on-year and amounted to$105 million, which was mainly a result of increased stripping works. The Group's administrative costs for the six months ended 30 June 2007 includedexpenses incurred in relation to the option plan amounting to $133 million. Thislead to increase in the Group's administrative costs in the period under review. Group's net loss for the first half of 2007 amounted to $93 million, which was aresult of the factors stated above. The management of Polyus Gold would like to reiterate that the net loss for thefirst half of 2007 resulted from the expenses under share option plan and is oftemporary nature. The complete version of the consolidated financial statements for the six monthsended 30 June 2007, prepared in accordance with IFRS is available on the Group'swebsite under Investor Relations / Reports / Financials. Polyus Gold is to hold a conference call devoted to the condensed consolidatedfinancial statements for H1 2007 on Tuesday, October 16, 2007, 5 pm, Moscowtime. Participants of the conference: Pavel Skitovich, General Director;German Pikhoya, Deputy General director, corporate development;Dmitry Glotov, Deputy General director & CFOEkaterina Vladimirova, Director, IFRS The details of the conference call will be available at the company's web-sitewww.polyusgold.com on Monday, 15 October, 2007. Note for editors: Polyus Gold is the largest gold producer in Russia. In 2006 its gold outputtotaled 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 Victoria V. Vergelskaya, PR DirectorElena D. Evstigneeva, Media Relations+7 (495) 641-3365+7 (495) 544-5496 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
PLZL.L