Russian gold producer Polyus earnings up 10 pct on higher sales (updated)
14/08/2017 09:37
(Adds details, quotes, context)
MOSCOW, Aug 14 (Reuters) - Russia's largest gold producer
Polyus PLZL.MM on Monday reported a 10 percent increase in
first-half core earnings as higher sales volumes compensated for
a flat gold price.
First-half adjusted earnings before interest, taxation,
depreciation and amortisation (EBITDA) rose to $762 million from
$691 million a year ago. Revenue was up 14 percent to $1.2
billion.
One-off non-cash items and forex gains supported its
first-half net profit, which was up 21 percent year on year to
$603 million. Excluding those factors, adjusted net profit was
still up 17 percent to $475 million.
Polyus, controlled by the family of Russian tycoon Suleiman
Kerimov, also said that it was on track to start production at
its main greenfield project - the Natalka gold deposit in
Russia's far east - by the end of this year.
The ramp-up of construction at Natalka was the main reason
behind a 73-percent increase in capital expenditure to $322
million in the first half of 2017, Polyus said.
This project will drive Polyus' production growth in the
coming years and is a major part of the company's strategy which
helped it to sell a stake to investors in Moscow and London and
also to reach an agreement on investment with China's Fosun
earlier in 2017. urn:newsml:reuters.com:*:nL8N1JR0IM
"Polyus' flagship greenfield project Natalka remains on
track to be commissioned by the end of 2017. This allows us to
reiterate production guidance for 2017 at 2.075-2.125 million
troy ounces," Pavel Grachev, Polyus chief executive, said in a
statement.
Its production is expected at 2.35-2.4 million ounces in
2018 and at 2.8 million ounces in 2019. urn:newsml:reuters.com:*:nR4N1FA01V
Polyus also said that its net debt fell to $3.1 billion by
the end of June from $3.2 billion as of the end of 2016 mainly
due to the sale of its stake in the deposit in the
Nezhdaninskoye gold deposit in Russia's far east. urn:newsml:reuters.com:*:nR4N1FA00H
Polyus shares in Moscow were up 0.4 percent on Monday, in
line with 0.3 percent growth in the broader MICEX index .MCX .
(Reporting by Polina Devitt; editing by Jane Merriman)
((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters
Messaging: polina.devitt.reuters.com@reuters.net))
Keywords: RUSSIA POLYUS/