Russia's Polyus ups 2018 output forecast, Q4 gold sales rise (updated)
16/01/2018 08:51
(Adds 2018 output forecast, year-on-year comparison, context)
MOSCOW, Jan 16 (Reuters) - Polyus PLZL.MM , Russia's
largest gold producer, on Tuesday reported fourth-quarter sales
of $734 million, up 11 percent year on year, on higher
production and prices.
Polyus, controlled by the family of tycoon Suleiman Kerimov,
also upgraded its 2018 production forecast and said it planned
to speed up the ramp-up of its major Natalka gold mine in
Russia's far east.
"The asset is already operating at 50 percent of the design
capacity and once this long awaited project fully ramps up,
Natalka will become a significant source of earnings and cash
flow," Chief Executive Pavel Grachev said in the statement.
Polyus raised its 2018 gold production guidance to
2.375-2.425 million troy ounces from the previously expected
2.35-2.40 million, he said. It produced 2.16 million ounces in
2017.
The Natalka project is now expected to reach full production
levels in the second half of 2018, the company said. It had
previously expected to reach that level only by the end of the
year.
Polyus' updated guidance and faster Natalka ramp-up came as
positive surprises to the market, analysts at BCS Investment
Bank said in a note.
Polyus shares were up 2 percent, outperforming the broader
MICEX index .MCX , which was down 0.7 percent.
While production may be rising, the situation around the
company's shareholders has been uneasy in recent months, with
Kerimov detained as part of a tax evasion case in France in
November. urn:newsml:reuters.com:*:nL8N1O643C
On Monday Polyus said that its planned sale of a 10 percent
stake to China's Fosun 0656.HK had been scrapped.
urn:newsml:reuters.com:*:nL8N1PA1KA
For the fourth-quarter Polyus reported a 1 percent rise in
output to 579,800 troy ounces year on year. Quarter on quarter,
output fell 10 percent due to seasonally lower production at its
alluvial deposits.
At the end of 2017, Polyus' net debt stood at $3.08 billion,
down from $3.15 billion at the end of September.
(Reporting by Polina Devitt; editing by Polina Ivanova and
Jason Neely)
((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters
Messaging: polina.devitt.reuters.com@reuters.net))
Keywords: POLYUS OUTLOOK/