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%.

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.

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.

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
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
Do you own shares in Sirius Minerals? Here’s what you need to do now
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
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

Most Popular

Investors are shunning UK stocks – but they might regret that in a year’s time
UK stockmarkets

Investors are shunning UK stocks – but they might regret that in a year’s time

There are a number of reasons why investors aren't buying UK stocks, says John Stepek. But they may want to rethink that strategy.
29 Sep 2020
Are we really in a stockmarket bubble?
US stockmarkets

Are we really in a stockmarket bubble?

The rise of “cash shell” companies, sky-high valuations – everything seems to point to a stockmarket bubble. But all may not quite be as it appears, s…
28 Sep 2020
Two commodities that could lie at the heart of the next resources bubble
Energy

Two commodities that could lie at the heart of the next resources bubble

Commodities tend to move in cycles. And if you can identify early on which ones are about to surge in demand, you can profit handsomely. Dominic Frisb…
30 Sep 2020