Polymetal reports net earnings of $190M in H1 2023 as gold and silver sales up
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(Kitco News) - Polymetal International (AIX, MOEX: POLY), a senior global gold and silver producer, announced on Monday that in H1 2023, its gold equivalent (GE) production was 764 koz, a 3% increase y-o-y.
The company said that its H1 2023 gold sales increased by 25% y-o-y to 570 koz and silver sales increased by 19% to 10.4 moz, adding that its revenue grew by 25% y-o-y to $1,315 million, driven by the growth of gold and silver sales.
The company’s all-in sustaining costs (AISC) remained broadly unchanged at $1,386/GE oz, up 1% y-o-y, and within the full-year guidance range of $1,300-1,400/GE, reflecting the decrease in capitalized stripping on the back of completed stripping campaigns.
Adjusted EBITDA was $559 million in H1 2023, an increase of 31% y-o-y, driven by higher sales volumes.
Importantly, the company’s underlying net earnings increased by 28% to $261 million (H1 2022: $203 million), while net earnings were $190 million (H1 2022: $321 million loss due to one-off impairment charges).
Polymetal said it is on track to meet its original 2023 production guidance of 1.7 moz of gold equivalent. The company maintains its 2023 guidance range of $1,300-1,400/GE oz for AISC.
“Despite external pressures, we made good progress in the first half of the year while adapting to the logistics constraints. High commodity prices against a weakening Rouble, combined with steady operating performance, drove a healthy growth in the Group’s earnings, adjusted EBITDA and free cash flow. We expect stronger production, stable cash costs within the original guidance, and significant free cash flow generation for the second half of the year, while remaining focused on progressing our development projects on schedule,” said CEO Vitaly Nesis.
Polymetal International is a senior global gold and silver producer with assets in Russia and Kazakhstan. Polymetal has a portfolio of ten producing gold and silver mines and a pipeline of future growth projects. On 7 August 2023, the company successfully completed its re-domiciliation to the AIFC (Kazakhstan).