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Polymetal reports jump in half-year earnings as strong gold production offsets decline in silver output

The FTSE 250 metals miner reported adjusted underlying earnings for the period of US$305mln, up 19% on the same period a year ago, while revenues climbed 16% to US$789mln

gold bars and dollar bills
The performance boost was mainly attributed to a 17% uptick in gold sales

Polymetal International PLC (LON:POLY) has reported a jump in its half-year earnings as strong gold production offset a small decline in its silver output.

The FTSE 250 metals miner reported adjusted underlying earnings (EBITDA) for the period of US$305mln, up 19% on the same period a year ago, while revenues climbed 16% to US$789mln.

READ: Polymetal sells 50% stake in Dolinnoye gold property to Altynalmas

The performance boost was mainly attributed to a 17% uptick in gold sales during the period to 445 thousand ounces (Koz), offsetting a 2% decline in sales of silver to 12.1 million ounces (Moz).

The group was also helped by a 6% year-on-year increase in the average realised gold price for the period to US$1,312 per ounce, while the average realised silver price declined 4% to US$15.6 per ounce.

Polymetal also declared an interim dividend of US$0.17 per share for the period, up from US$0.14 last year.

Looking ahead, the group said it remained on track to meet its production guidance for the full year of 1.55 Moz of gold equivalent, while total cash costs and all-sustaining cash costs were expected to be within guidance ranges of US$65-700/GE oz and US$875-925/GE oz respectively.

For the second half, the firm said it expected strong production driven by “traditional seasonal concentrate de-stockpiling” at the Mayskoye gold mine, as well as first contributions from its Kyzyl operation, which on Monday shipped its first 2000 tonnes of gold concentrate to China.

However, Polymetal added that the guidance remained contingent on the exchange rates between the US dollar and the Russian rouble, which has a “significant effect” on its rouble-denominated operating costs.

Over the six month period of the group’s results, the rouble has declined around 8% against the dollar, which the company said was “mainly on the back of new US government sanctions imposed against certain Russian individuals and companies”.

Quick facts: Polymetal International PLC

Price: 1260.5 GBX

LSE:POLY
Market: LSE
Market Cap: £5.93 billion
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