Polymetal suspends mine over Covid, maintains 2020 guidance
London-listed mining company Polymetal said on Wednesday that it had temporarily suspended operations at one of its mines in Russia, after one-third of its employees there tested positive for Covid-19.
The Olcha mine, part of the Omolon hub, employs 164 employees and contractors.
The mine would resume normal operational activity in 10 to 14 days and the suspension would not have a material impact on the group’s production for the year, Polymetal said in the company’s results announcement.
The miner kept its guidance for 2020 at 1.5-million gold-equivalent ounces (GEO) at a total cash cost of $650/oz to $700/oz and an all-in sustaining costs (AISC) of $850/GEO to $900/GEO.
Polymetal produced 723 000 GEOs in the first six months of the year, an increase of 4% on the prior-year interim period.
Group total cash costs were $638/GEO, down 4% year-on-year and 2% below the full year guidance of $650/oz to $700/oz, mostly owing to the weakness of the Russian rouble and Kazakh tenge.
AISC amounted to $880/GEO, down 3% year-on-year and within the full-year guidance of $850/GEO to $900/GEO.
The group reported a significant increase in earnings, cash flow and dividends on the back of favourable commodity prices and tight cost controls, as well as the impact of foreign exchange and improved grades.
Net earnings rose from $153-million in the first half of 2019, to $381-million in the first half of 2020. Revenue increased by 21% year-on-year to $1.14-billion, as higher gold and silver prices offset a dip in sales.
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