Russian gold miner Polyus reports 42 pct net profit jump, forex gains (updated)
21/02/2017 09:13
* Net profit up 42 pct, foreign exchange gains help
* Plans to launch Natalka gold deposit in 2017
* Says still working on plan to increase free float
* End-2016 net debt $3.2 bln vs $364 mln yr earlier
(Adds details, context)
By Polina Devitt
MOSCOW, Feb 21 (Reuters) - Polyus Gold PLZL.MM reported a
42 percent jump in 2016 net profit to $1.4 billion on Tuesday as
Russia's largest gold producer saw higher sales and gains in
foreign exchange and derivatives.
Higher sales volumes and higher gold prices powered a 20
percent rise in adjusted earnings before interest, taxation,
depreciation and amortisation (EBITDA) to $1.5 billion.
Revenue rose 12 percent to $2.5 billion.
Profit excluding non-cash items was largely flat at $952
million due to higher interest payments, said the company, which
is controlled by the family of Russian tycoon Suleiman Kerimov.
Polyus said it expected to produce 2.075 million to 2.125
million troy ounces of gold in 2017, topping a record 1.968
million ounces in 2016.
It said it remained on track to hit its target of at least
2.7 million ounces by 2020.
This year Polyus aims to commission its Natalka gold deposit
in Russia's Far East, its main greenfield project now, the
company said.
Polyus in a joint venture with state conglomerate Rostec
also bought the development rights for the Sukhoi Log, one of
the world's largest untapped gold deposits, for 9.4 billion
roubles ($162 million) in January. urn:newsml:reuters.com:*:nL5N1FG23A
In 2016, Polyus raised a credit facility to finance a $3.4
billion buyback of shares from its controlling shareholder.
Polyus net debt stood at $3.2 billion at the end of 2016, up
from $364 million a year earlier.
"Polyus continued to proactively manage its debt portfolio
and successfully tapped the Eurobond market twice during the
last four months, placing a total amount of $1.3 billion," it
said.
Its capital expenditure rose 75 percent to $468 million in
2016.
On Tuesday, the company said it was still working on a plan
to increase its free-float to 10 percent, declining further
comment. urn:newsml:reuters.com:*:nL8N199390 urn:newsml:reuters.com:*:nR4N1C602A
Polyus has said it plans a placement of 5 percent of its
shares on the Moscow Stock Exchange to meet the bourse's 10
percent free float requirement. urn:newsml:reuters.com:*:nL8N1BE0XY
Polyus plans to use either existing or new shares with the
funds from the placement going to the company. It has also said
it would consider placing global depository receipts (GDRs) in
London in the future.
Polyus shares in Moscow were flat on Tuesday versus a 0.5
percent decline in the metals and mining index .MCXMM .
($1 = 57.8569 roubles)
(Reporting by Polina Devitt; editing by Katya Golubkova and
Jason Neely)
((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters
Messaging: polina.devitt.reuters.com@reuters.net))
Keywords: POLYUS RESULTS/