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Russian gold mining giant Polyus ups earnings per share 36% in third quarter

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(Kitco News) - Polyus (LSE: PLZL), Russia's largest and the world's top-5 gold producer, today reported that its revenue for the third quarter of 2021 totalled $1,400 million, down 4% compared to the third quarter of 2020 ($1,454 million).

Polyus said it produced 770 koz of gold in Q3 2021, which is virtually unchanged compared to 771 koz produced in Q3 2020. Doré gold output at its flagship Olimpiada gold mine stood at 293 thousand ounces in the third quarter of 2021, a decline of 8% over Q3 2020.

The company added that adjusted EBITDA for the third quarter of 2021 amounted to $986 million, an 11% decrease compared to $1,103 million in the third quarter of 2020.

Importantly, the company posted profit of $664 million for the third quarter of 2021, an increase of 29% compared to $516 million for the third quarter of 2020, whereas earnings per share increased 36% to $4.87 compared to $3.59 per share a year ago.

CEO Pavel Grachev commented, "Polyus continues to progress with its growth projects. At Mill-5 at Blagodatnoye, our key brownfield project, we signed an agreement with a major contractor and made the first advance payment. We have also finished the site preparation for an IPCC system and advanced the construction of a crushed ore stockyard at the site."

"At our greenfield project, Sukhoi Log, we have completed our deep-level and flank exploration drilling campaign. Development of the Bankable Feasibility Study is ongoing," he added.

Polyus is the world's fourth-largest gold mining company by production volumes and the largest gold miner in terms of attributable gold ore reserves. The company has the lowest production costs among major global gold producers. Its principal operations are located in Siberia and the Russian Far East: Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).

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