Mining News
Russia's Polymetal reports net loss of $288 million in 2022, decides not to pay dividend
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(Kitco News) - Russia's Polymetal, a senior global gold and silver producer, reported today that the company's 2022 gold equivalent (GE) production amounted to 1,712 Koz, a y-o-y increase of 2% and in line with the original production guidance of 1.7 Moz.
The company said that first full year of operations at Nezhda and initial production at Kytyn compensated for declining grades at mature assets.
Group total cash costs for 2022 were US$ 942/GE oz and within the company’s guidance of US$ 900-1,000/GE oz, although representing an increase of 29% y-o-y, which was predominantly due to double-digit domestic inflation and the appreciation of Rouble/USD exchange rate.
"Escalation of logistical costs and sharp increases in the price of consumables caused by the imposition of sanctions (explosives, equipment spares, cyanide) also impacted the group’s total cash costs," it said.
According to a company press release, revenue for 2022 stood at US$ 2.8 billion, a y-o-y decrease of 3% on the back of lower average gold and silver prices.
Polymetal noted that adjusted EBITDA was US$ 1,017 million in 2022, 31% lower than in 2021, "as costs rose and metals prices declined."
Underlying net earnings were US$ 440 million (2021: US$ 913 million). As a result of a lower EBITDA and non-cash impairment charges (a post-tax amount of US$ 653 million), the company recorded a net loss for the period of US$ 288 million in 2022, compared to profits of US$ 904 million in 2021.
Importantly, the company said that its Board has decided not to propose any dividend for 2022 "in order to allow the group to maintain strategic and operating flexibility in a highly volatile and uncertain external environment."
Polymetal also reiterated its current production guidance for 2023 of 1.7 Moz of GE.
Polymetal International is a senior global gold and silver producer with assets in Russia and Kazakhstan.
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Polyus' 2022 profit down on lower gold production and higher costs |
