Polymetal grows production but weak commodity prices hit FY revenue
Russian precious metals miner Polymetal said its fourth-quarter and annual output and sales rose, but weaker commodity prices dampened full-year revenue.
FTSE 250
19,450.67
17:14 18/04/24
FTSE 350
4,334.00
17:14 18/04/24
FTSE All-Share
4,290.02
16:54 18/04/24
Mining
10,662.18
17:14 18/04/24
Polymetal International
215.00p
16:35 31/07/23
In the three months to 31 December 2014, the miner produced 391,000 ounces of gold equivalent, a 26% hike year-on-year, while gold production increased 41% to 299,000 ounces and silver output fell 3% to 5.5m ounces.
The FTSE 250 group said that fourth-quarter gold sales rose 26% from the corresponding period in 2013, while silver sales edged forward 4% to 8.1m ounces. Revenue rose 4% year-on-year to $513m (£338.85m).
The London-listed group said full-year gold equivalent production for 2014 increased 12%, reaching 1.43m troy ounces and surpassing the group’s revised guidance of 1.30m ounces by 5%, largely thanks to improvements at the Dukat and Omolon plays.
Gold production for the year rose by 17% year-on-year to 945,000 ounces, while silver production increased by 5% to 28.7m ounces, the group added.
Full-year gold sales for 2014 rose by 15% to 943,000 ounces and silver sales increased by 7% to 29.3m ounces, generating revenue of $1.68bn, though this was down 2% from 2013.
Polymetal estimated capital expenditure for 2015 to total $240m, but it warned the budget is very dependent on the exchange rate and inflation in Russia, and it reiterated its output guidance of 1.35m ounces for 2015 and 2016.
“The company exceeded its upgraded production guidance of 1.35m ounces and we expect the shares to receive a positive market reaction today,” broker Shore Capital said in a note on Thursday.
Polymetal shares were up 1.86% to 601.00p at 10:51 on Thursday.