Russian gold miner Polymetal's Q3 revenue down 13% y/y (updated)

Polymetal International PK

02/11/2022 07:59

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       MOSCOW, Nov 2 (Reuters) - Polymetal's  POLYP.L 
third-quarter revenue fell by 13% year on year to $714 million
due to accumulated inventory and lower metal prices, the Russian
gold and silver producer said on Wednesday.
    Polymetal has not been directly targeted by Western
sanctions imposed on Moscow after it sent thousands of troops
into Ukraine on Feb. 24.
    But in common with other Russian commodity producers it has
suffered an impact as Western banks and shippers have reduced
dealing with Russian companies even if they are not legally
bound by sanctions law.
    "The company has successfully completed the restructuring of
its sales channels and started to unwind accumulated inventory.
We expect strong positive free cash flows in the fourth
quarter," CEO Vitaly Nesis said in a statement.
    During the first nine months of 2022, a total of 198,000
troy ounces of inventory was accumulated across Polymetal's
Russian mines.
    However, export sales resumed at full speed at the end of
the third quarter, Polymetal said, adding that it expects the
gap between production and sales to close by the end of 2022.
    Its third-quarter production of gold equivalent (GE), a mix
of gold and other metals, grew by 7% to 490,000 ounces, the
miner said.
    Polymetal is on track to produce 1.7 million ounces of GE in
2022 and plans to keep output stable in 2023 and 2024,
"contingent on supply chain risks," it added.
 (Reporting by Anastasia Lyrchikova and Polina Devitt; editing
by Jason Neely, Editing by Louise Heavens)