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Russian gold miner Polyus delivers strong 2020 financial results, pays $1.1B in dividend

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(Kitco News) - Polyus, the largest gold producer in Russia and one of the top five gold miners globally, today reported that the company’s total gold sales volumes amounted to 2,817 thousand ounces of gold for 2020, down 2% compared to the prior-year.

In 2020, the company’s revenue totaled $4,998 million, a 25% increase from the prior year, driven by a higher average realised refined gold price ($1,786/oz in 2020, compared to $1,403/oz in 2019).

The group’s adjusted EBITDA stood at $3,690 million in 2020, a 38% increase compared to the previous year, driven by higher average gold prices in 2020.

The net debt (incl. derivatives)/adjusted EBITDA ratio decreased to 0.7x compared to 1.2x at the end of 2019, reflecting a lower net debt position and adjusted EBITDA growth over the last twelve months.

The company added that the total dividend payout for the full year of 2020 will correspond to $1,107 million. This amount includes $414 million paid out in form of dividend for the first half of 2020.

Based on the mining plan and processing capabilities, Polyus expects total gold output of approximately 2.7 million ounces in 2021. Production guidance reflects a temporary reduction of head grades at Olimpiada caused by forced changes to the mining schedules, following the virus outbreak in the second quarter of 2020 and subsequent downscale of stripping works.

Polyus is the largest gold producer in Russia and one of the top five gold miners globally with the lowest cost position. Based on its 2019 Ore Reserves and Mineral Resources, Polyus ranks third by attributable gold reserves among the world’s largest gold mining companies. The company’s principal operations are located in Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).

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