Russian Polymetal Increases Its Earnings

The company has earned more than $1.1 billion in the first half of the year

Polymetal International PLC, which mines gold in Kazakhstan and Russia, has announced the second-quarter financial results.

According to the company, the production of gold in the second quarter has increased by 2% up to 358,000 ounces compared to the same period of last year. Particularly, this growth was based on the work of the Kyzyl mining site (Kazakhstan), which has shown high results and compensated losses at the Svetloe mining site in Russia. In total, during the first half of the year, Polymetal produced 723,000 ounces of gold or 4% more than in the last year.

Thanks to the increase in gold prices in the second quarter, the company’s earnings have risen by 30% to $641 million. Thus, the total revenue for the first half of the year has increased by 20% to over $1.1 billion. 

Even though Polymetal extracted 8.1 million tons of ore mineral or 6% less than last year, the company was able to process 7.8 million tons of ore or 3% more than in the same period last year. As a result, the volume of produced gold in the second quarter is 642,000 ounces or 7% more than in 2019. At the same time, the production of silver has been downsized by 11% to 9.8 million ounces.

In general, during the first half of the year, Polymetal sold 595,000 ounces of gold (-2%) and 9.9 million ounces of silver (-4%).

Net debt of the Polymetal as of the end of the second quarter didn’t change compared to the first quarter, remaining at about $1.69 billion. The company also paid all dividends for 2019 in $197 million or $0.42 per share. In total, Polymetal plans to produce in 2020 roughly 1.5 million ounces of gold.

«At the moment we are expecting the same level of costs due to devaluation of the Russian ruble and Kazakhstani tenge amid the pandemic,» company said.

During that period, the work of Polymetal enterprises both in Russia and Kazakhstan have gone pretty well. The company did not face any problems in the production cycle or supply chain. All precious metal refinery plants of the company had been working in the proper way.

Polymetal International PLC is a public mining company with headquarters in Saint Petersburg (Russia). It operates gold mining sites in Russia and Kazakhstan and is included in TOP-10 of gold producers and TOP-5 silver producers all over the world.

Earlier, the gold prices surged to their high amid the pandemic and low demand for oil. Recently, the metal recorded a nine-year high during trade sessions in NewYork. The front-month futures for gold have risen by 1.3% to $1841.4 per ounce.

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