Polymetal wary on 2013 production

Polymetal said gold production had topped expectations in 2012 but warned there was a moderate chance it would miss this year's target.

Polymetal said gold production had topped expectations in 2012 but warned there was a moderate chance it would miss this year's target.

Its full year production results showed total gold equivalent production of 1,063 Koz, up 31% compared to 2011 and exceeding the original guidance of 1 Moz by 6%.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

This was driven by stable performance at all its mature mines, with a notable improvement achieved at Dukat, and successful ramp-up at Omolon and Albazino.

In the fourth quarter total sales were up by 5% to $571m, driven by a 9% rise in silver sales, offsetting a 5% fall in gold and a 33% fall in copper sales.

Advertisement
Advertisement - Article continues below

While the company confirmed its 2013 production guidance of 1.2 Moz of gold equivalent, it added that delays in ramping its POX facility meant it could miss this by up to 5%.

The plant has suffered from unexpectedly high chlorine concentrations in process water and certain design weaknesses.

It had to be shut down in late December and currently operated at 60% of capacity, the firm said.

Annual gold production was 589 Koz, up 33% year-on-year driven mainly by the successful ramp-up at Omolon and Albazino.

Annual silver production was 26.5 Moz, up 33% year-on-year as a result of higher grades and recoveries at Dukat, successful processing of high-grade Sopka ore at Omolon, and increased silver grades at Khakanja.

The firm said that given current macroeconomic environment and a recent significant appreciation of the Russian rouble against the US Dollar, it expected total cash costs in 2013 to be around $700-725/GE oz and capital expenditures (inclusive of exploration) of around $300m.

Advertisement

Recommended

Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Visit/investments/stocks-and-shares/share-tips/600636/class-acts-going-cheap-buy-into-europes-best
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular

Visit/economy/global-economy/600991/helicopter-money-is-coming-very-soon-but-what-form-will-it-take
Global Economy

Helicopter money is coming very soon – but what form will it take?

We’re heading for a”new normal”, says John Stepek – fiscal stimulus, and lots of it. Here’s what that really means.
16 Mar 2020
Visit/investments/600992/the-helicopters-are-being-warmed-up-we-might-be-closer-to-a-bottom-than-you
Investments

The helicopters are being warmed up – we might be closer to a bottom than you think

Governments are starting to act to bolster their economies against coronavirus. But, asks John Stepek, will throwing money at the problem slow the mar…
17 Mar 2020
Visit/investments/funds/investment-trusts/600975/now-could-be-a-good-time-to-bag-an-investment-bargain
Investment trusts

Now could be a good time to bag an investment bargain

We like investment trusts here at MoneyWeek. And they can be even better during a market crash.
16 Mar 2020
Visit/investments/stockmarkets/european-stockmarkets/600725/is-2020-the-year-for-european-small-cap
Sponsored

Is 2020 the year for European small-cap stocks?

SPONSORED CONTENT - Ollie Beckett, manager of the TR European Growth Trust, on why he believes European small-cap stocks are performing well.
12 Feb 2019