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Polymetal beats gold production estimates in the first quarter of 2019

Polymetal is one of the world's largest gold miners
Polymetal beats gold production estimates in the first quarter of 2019
Full year production guidance has been set at 1.55mln ounces

Polymetal International PLC (LON:POLY) produced 369,000 ounces of gold during the first quarter of 2019, comfortably ahead of expectations, including those of analysts at RBC, and 37% ahead of the production rate for the corresponding period a year ago.

The company has said it is on track to meet guidance for all-in sustaining costs of between US$800 and US850 per ounce, and that overall production should hit 1.55mln ounces for the full year.

Investor Day next week

Debt did rise, but RBC notes that earnings are also set to rise this year, on its own estimate by 11%.

What’s more, free cash flow is always weighed heavily towards the second half of the year for Polymetal.

Operationally, the company’s new key new asset at Kyzyl in Kazakhstan, which will account for 36% of NAV by 2020, showed further improvements, with flotation recoveries reaching 89% in the quarter, above the 85% that was forecast by RBC.

Next week, Polymetal will host an investor day, and interest will focus on potential disposals or deals, debt, and also on the potential of new projects like Prognoz, recently acquired from a company controlled by Baker Steel Resources Investment Trust (LON:BSRT).

Just over 21% of the Baker Steel portfolio is accounted for by shares in Polymetal.

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Polymetal International Timeline

Newswire
August 30 2013

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