https://www.miningweekly.com

Polyus reports jump in profit on rising gold sales

11th February 2019

By: Reuters

  

Font size: - +

MOSCOW – Russia's largest gold producer, Polyus, on Monday reported a 20% jump in fourth-quarter adjusted net profit to $291-million compared with last year, lifted by increased production and rising sales of the metal.

Adjusted net profit for the full year rose to $1.33-billion, Polyus said, up from $1.02-billion in 2017.

Shares in Polyus were down 0.7% at 08:28 GMT.

The company also said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the fourth quarter stood at $484-million, up 4% on the year.

Revenue in the fourth quarter was at $774-million, up 4.2% on the year. The company's sales in 2018 were up 8% compared with the previous year at 2.33-million ounces of gold.

The company said it planned to invest around $725-million in 2019, an increase on its earlier forecast of $650-million, reflecting delays to the construction of some projects at its Natalka gold deposit in Russia's far east.

Polyus chief executive Pavel Grachev told Reuters in an interview in December that the company aimed to see a full ramp-up of production at its new Natalka gold deposit in December or in early 2019.

Capital expenditure in 2018 was at $736-million, the company said on Monday, down from $804-million in 2017.

"Polyus demonstrated solid free cash flow generation during the year despite a capex intensive period," Grachev said in a statement.

"Polyus expects to deliver approximately 2.8-million ounces of gold in 2019, which is in line with our initial guidance. The Natalka operations ... and a number of ongoing throughput capacity expansion projects across our assets will underpin further production growth," he said.

Polyus said its board of directors intended to recommend a second half 2018 dividend of $296-million, or $2.2 a share.

Edited by Reuters

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION