Polymetal cashes in on soaring gold price

Russian miner Polymetal is on track to deliver 1m ounces of gold equivalent production in 2012 it said, as it announced sharp increases in revenue and earnings.

Revenue in 2012 rose 43% to $1,326m in 2012 from $925m in 2011, as production rose by 8% to 810,000 ounces of gold equivalent from 753,000 ounces in 2011. As well as gold, Polymetal produces silver and copper.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 47% to $624m from $425m the year before, while pre-tax profit was up by a third to $409m.

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The average realised price for gold sold in 2012 was $1,556 an once, up 26% from $1,232 an ounce in 2011.

The directors propose to pay a dividend of $0.20 per share, and from 2012 the company intends to pay a dividend of 20% of net earnings provided that net debt to adjusted EBITDA ratio is below 1.75.

JH