Currently viewing Global edition

Stronger production, prices lift Polyus

Russian gold producer Polyus has had a good second quarter, with a 20% increase in gold sales coming on top of a year of significantly higher production.
Stronger production, prices lift Polyus Stronger production, prices lift Polyus Stronger production, prices lift Polyus Stronger production, prices lift Polyus Stronger production, prices lift Polyus

Polyus' Olimpiada mine, Russia

Staff reporter

Polyus sold US$886 million of gold in the second quarter.

The company said it increased ore volumes mined by 68% year-on-year in the quarter, driven by "intensified mining activities across all operating assets." Ore processed was 10.9 million tonnes, up 10% yoy and 6% higher than the previous quarter.

Its weighted average gold selling price over the period was $1,314/oz.

"Polyus has delivered another strong quarter, with gold production increasing by 14% to 684,000 ounces, both on a quarter-on-quarter and a year-on-year basis," said Polyus chief executive Pavel Grachev.

"This performance was supported by the Natalka Mill operating at full capacity and ongoing expansion across our entire asset portfolio."

Gold output for the half year to June 30 was 1.285 million ounces versus 1.1Moz in the first half of 2018. Gold sales in the first half of 2019 increased 26% yoy to $1.62 billion.

"We are continuously working to introduce further operational improvements at Natalka, including a set of initiatives to increase the recovery rate," said Grachev.

"Based on the production results for the first half of 2019, the company remains on track to achieve production of approximately 2.8 million ounces of gold for the full year, in line with its guidance."

The company's estimated net debt stood at $3.63 billion compared with $3 billion at the end of the previous quarter.

Polyus' share price increased to ₽6,472 ($102.78) on Friday, up from ₽4,773 ($75.8) in May.