Polymetal earnings up 46 per cent following production at Kazakhstan gold mine
Precious metals producer Polymetal reported an earnings increase of 46 per cent for the first half of the year after the opening of its gold mine in Kazakhstan boosted production.
The Russian gold and silver producer said its net income rose to $175m year-on-year after production began at its Kyzyl mine in June.
The company shipped its first 2,000 tonnes from its new gold mine in Kazakhstan to China last week.
Operations at the Kyzyl mine are set to expand and the company predicted it would produce 150 kilotonnes per month by October.
Chief executive, Vitaly Nesis, said was delighted with the half-yearly results and said the outlook was even more positive for the rest of 2018.
He said: “We expect stronger production and free cash flow generation for the second half and remain focused on steadily progressing our further growth pipeline, including the full ramp-up of Kyzyl, while generating meaningful dividends to our shareholders.”
The company plans to produce 80 Koz of payable gold at Kyzyl this year, ramping up production to 280 Koz in 2019 and 330 Koz thereafter at $500-550 per ounce.
Shares in the FTSE 250-listed miner closed up 2.5 per cent at 662.6p.