BAKU, Azerbaijan, Apr. 22
By Nargiz Sadikhova - Trend:
Gold equivalent (GE) production of Polymetal International, which operates mines in Kazakhstan and Russia, grew by 3 percent year-on-year to 375,000 ounces in 1Q2021, Trend reports citing the company.
All-time highest quarterly production was observed from Varvara mine (Russia) and strong performance across other assets offset the planned grade-driven decline at Kyzyl mine (Kazakhstan).
Revenue for the quarter increased by 20 percent, year on year, to $593 million on the back of higher gold and silver prices. A traditional lag between silver concentrate production and sales at Dukat mine is expected to close in 2H2021 as well as a lag in gold sales primarily related to Dore mine from Kyzyl mine’s conсentrate.
Net Debt of the company decreased by $29 million during the quarter to $1.32 billion as Polymetal generated positive quarterly free cash flow despite seasonal inventory accumulation.
"Construction and development activities at Nezhda and POX-2 projects progressed on schedule even amid continued tightness in the construction contractor market and COVID-related cross-border travel restrictions. Nezhda is scheduled to achieve mechanical completion on September 1, 2021 and produce first concentrate on November 1, 2021," the company said.
Polymetal confirms its 2021 production guidance of 1.5 million ounces of GE.
The company will host its annual Analyst & Investor Day including ESG presentation on April 27 in Moscow, where its mid-term GHG emission reduction targets will be announced.
Polymetal International PLC is a top-10 global gold producer and TOP-5 global silver producer with assets in Russia and Kazakhstan listed on the London Stock Exchange, Moscow Stock Exchange and Astana International Exchange.
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