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Polyus posts 2023 profit jump on higher output, gold prices

29th February 2024

By: Reuters

  

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MOSCOW - Russian gold producer Polyus's net profit rose 12% to $1.7-billion last year thanks to increased production and sales, it said on Thursday, but it expects lower gold output in 2024 and warned that transforming its supplier base may take time.

The US and UK imposed sanctions against Polyus last year over Russia's actions in Ukraine, a step that played some part in the company delisting its depositary receipts from the London Stock Exchange.

Polyus' revenue jumped 28% year-on-year to $5.4-billion, partially boosted by high gold prices. Production rose 14% and gold sales climbed 20%, both to 2.9-million ounces.

But Polyus expects lower production in 2024, at 2.7-million to 2.8-million ounces, with the expected decline to be driven by lower ore grades processed at Olimpiada, the company's largest operating asset.

"Although the group has started (the) transition to alternative suppliers, full replacement of suppliers who left the Russian market may take a considerable time and involves additional costs and rescheduling of certain investment projects and capital commitments," Polyus said in a report.

The company said its adjusted core profit rose 51% to $3.9-billion in 2023. It planned capital expenses this year in the range of $1.55-billion to $1.7-billion.

Edited by Reuters

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