Polymetal reports 8% gold equivalent production decline in Q3, flags COVID-19 outbreaks
(Kitco News) - Russian mining companyPolymetal, a top-10 global gold and silver producer, reported today that its Q32021 gold equivalent production decreased by 8% y-o-y to 437 Koz as resultsreverted to the mean from the all-time quarterly production record set in Q32020.
The company added that itsgold equivalent (GE) output for nine months was down by 4% to 1,151 Koz drivenby planned grade declines at Kyzyl, Svetloye and Voro.
Polymetal noted that revenuefor the quarter declined by 7% y-o-y to US$ 819 million driven by lower goldand silver prices, while 9M 2021 revenue reached US$ 2,093 million, up 4%y-o-y.
Net debt marginally increasedfor the quarter to US$ 1.90 billion as the company generated substantial freecash flows and paid an interim dividend of US$ 0.2 billion (45 cents pershare).
Importantly, the companypointed out that Russia is going through the fourth wave of the COVID pandemicwith multiple daily highs set recently for both new cases and deaths.
“At Polymetal, the number ofactive cases rose to 72 as of the date of this press release. The epidemiologicalsituation remains under control with operations and projects continuingundisrupted despite several localised outbreaks,” the company said in astatement.
However, Polymetal reiteratedthat it is on track to meet its full-year 2021 production guidance of 1,500 GEKoz, and that TCC and AISC guidance of US$ 700-750/GE oz and US$ 925-975/GE ozrespectively is also maintained.
Polymetal International is atop-10 global gold and silver producer with assets in Russia and Kazakhstan.
By Vladimir BasovFor Kitco News
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