Russian gold miner Polymetal's Q4 revenue jumps on inventory clearance

Polymetal International PK

25/01/2023 12:08

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restricts
coverage of Russian military operations in Ukraine
    

  
       MOSCOW, Jan 25 (Reuters) - Russian gold and silver
producer Polymetal  POLYP.L  said on Wednesday its
fourth-quarter revenue jumped 30% year-on-year to $1 billion as
it sold down metal and concentrate inventory.
    Polymetal has not been directly targeted by Western
sanctions imposed on Moscow after it sent thousands of troops
into Ukraine on Feb. 24. But, along with other Russian commodity
producers, it has suffered from their impact as Western banks
and shippers have reduced dealings with Russian companies.
    The сompany's gold equivalent output (GE), a mix of gold and
other metals, increased 16% year-on-year in the quarter to
540,000 troy ounces, driven by the contribution of the Nezhda
deposit and strong grades at Kyzyl. 
    For the full year, Polymetal's output increased by 2% to
1.712 million ounces of GE, in line with its production
guidance.
    But the company's revenue for 2022 fell by 3% to $2.8
billion on the back of lower average gold and silver prices.
    Polymetal expects the gap between production and sales to
close in the first half of 2023, it said.
    The company reiterated its current production guidance for
2023 of 1.7 million ounces of GE and saw capital spending of
$700-750 million.
    "In 2023, we are targeting stable production and return to
free cash flow generation," CEO Vitaly Nesis said in the
statement.
    Polymetal said it was considering moving its parent
company's domicile and primary listing, currently in Jersey and
London respectively, to "Russia-friendly" Kazakhstan, which
"could unblock the ability to execute further corporate
actions".
 (Reporting by Anastasia Lyrchikova
Editing by Mark Potter)
 ((anastasia.lyrchikova@thomsonreuters.com;))