(Alliance News) - Polymetal International PLC said Friday its revenue expected to jump in 2020, despite a small rise in gold production, on the back of increased metal prices.
The Anglo-Russian precious metals miner saw its waste mined in the final quarter of 2020 rise 10% year on year to 44.0 million tonnes from 39.8 million tonnes. Ore mined, however, dropped 16% to 3.5 million tonnes from 4.2 million tonnes.
Gold production rose 3% to 322,000 ounces from 312,000 ounces, while silver production dropped 16% to 4.4 million ounces from 5.2 million ounces.
Gold sales improved 3% to 3.9 million ounces, while silver sales dipped 9% to 5.2 million ounces.
Revenue in the final quarter jumped 31% to USD846 million from USD643 million - which Polymetal attributed to increased metal prices.
For 2020, revenue improved 28% to USD2.87 billion from USD2.25 billion.
Over the whole year, gold production rose 6% to 1.4 million ounces, and silver production dropped 13% to 18.8 million ounces.
"Strong contribution from Kyzyl, Varvara and Albazino offset planned grade declines at Svetloye and Voro. Fourth quarter gold equivalent production was roughly stable year on year and stood at 3.6 million ounces," Polymetal explained.
Gold in 2020 sales grew 2% to 1.4 million ounces, and silver sales fell 13% to 19.3 million ounces.
"2020 was a successful year for Polymetal despite the Covid pandemic. We improved our safety performance and, crucially, achieved zero fatalities," Chief Executive Vitaly Nesis said.
"The company beat production guidance, enjoyed record free cash flow and continued to execute development projects on schedule."
Looking ahead, Polymetal reiterated production guidance of 1.5 million ounces of gold equivalent for 2021 and 1.6 million ounces for 2022.
Capital expenditure in 2021 is expected to be about USD560 million. A USD75 million increase compared to the previous guidance.
As a result, all-in sustaining costs in 2021 are expected to average USD925 to USD975 per gold equivalent ounce. Gold was quoted at USD1,844.97 an ounce early Friday.
Polymetal said it will continue to prioritise timely project execution over cost optimisation in its projects.
"In 2021, we expect first ounces from Nezhda and will make every effort to minimize the impact of the second wave of the pandemic on our safety, production, and cash flows," Nesis added.
Shares in Polymetal International were down 2.1% in London on Friday morning at 1,571.50 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
