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 top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 24 March
Investments

Share tips of the week – 24 March

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
24 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023
Where will house prices go in 2023?
House prices

Where will house prices go in 2023?

We explore what could happen to house prices in 2023 as the market continues to slow down.
24 Mar 2023