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Russian gold giant Polyus posts $739 million EBITDA for Q1 2021

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(Kitco News) - Russian mining company Polyus (LSE, MOEX — PLZL), the largest gold producer in Russia and one of the top five gold miners globally with the lowest cost position, today announced that the company's total gold sales volumes amounted to 569 thousand ounces in the first quarter of 2021, down 31% compared to the fourth quarter of 2020.

The company explained that this decline reflects lower refined gold volumes at Olimpiada, Blagodatnoye and Natalka, mainly due to changes in gold in inventory at the refinery and a seasonal slowdown in production at Alluvials and Kuranakh.

However, gold sales increased by 5% compared to the corresponding period of 2020 (Q1 2020: 544 thousand ounces).

Revenue for the first quarter of 2021 totalled $1,028 million, down 32% compared to the previous quarter and up 18% compared to Q1 2020. Adjusted EBITDA for the first quarter of 2021 amounted to $739 million, a 35% decrease compared to $1,138 million in the previous quarter and 25% more than in Q1 2020.

Adjusted net profit was $469 million in Q1 2021, a 36% decline on Q4 2020 ($732 million) and 39% growth compared to Q 2020 ($338 million). 

The company said that the total recommended dividend payout for the second half of 2020 will correspond to approximately $693 million. The total dividend payout for the full year of 2020 will correspond to approximately $1,107 million. This amount includes $414 million paid for the first half of 2020.

CEO Pavel Grachev commented, "Polyus has reported solid cash generation for the first quarter of 2021. The company posted $739 million of EBITDA and $423 million of levered free cash flow. We continue to make progress on our brownfield development projects, including the recently approved Mill-5 construction. At Verninskoye, we have completed our expansion project to 3.5 million tonnes per annum, well ahead of initial schedule."

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 2020 Ore Reserves and Mineral Resources, Polyus group ranks the first by attributable gold reserves among the world's largest gold mining companies. The Polyus group's principal operations are located in Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).

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