Polymetal confident of full-year targets

Russia-focused metals giant Polymetal has said it has 'significantly de-risked' its achievement of its full-year production targets after a stable operational performance in the first quarter.

Russia-focused metals giant Polymetal has said it has 'significantly de-risked' its achievement of its full-year production targets after a stable operational performance in the first quarter.

However, the company said that it has initiated a review of all discretionary capital spending including exploration projects due to the recent sharp falls in gold and silver prices.

While the results of this review won't be revealed until the second-quarter output results, Polymetal said that projects likely to be delayed and/or re-engineered include Kutyn, Maminskoye and the heap leach facility at Sopka.

The company said it is on track to hit its 1.2m ounces production guidance this year after the start-up of the Mayskoye concentrator this month, the renewal of an off-take agreement for Albazino, and the ramp-up of its Amursk POX facility.

Total gold equivalent production totalled 235 thousand ounces (K oz) during the first quarter of 2013, up 16% year-on-year.

Gold production was up 20% at 121K oz helped by an additional contribution at the Amursk POX plant of 13Koz during the period. Meanwhile, silver output rose 14% to 6.4m oz due to a continuous improvement in grades and recoveries at Dukat.

However, metal sales lagged production during the quarter on the back of an increase in metals at refineries during public holidays in Russia. Total sales were $341m in the period, down 9.0% year-on-year.

"Thanks to an excellent performance at Dukat and the timely launch of the Mayskoye concentrator, we are on track to achieve our annual production guidance", said Vitaly Nesis, Chief Executive Officer.

"Polymetal is well positioned to withstand the current adverse metal price movements given our strategic preference for higher grade assets and intense management focus on cost control and efficient capital allocation".

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021