Polymetal gold equivalent production decreases in Q3

Precious metals miner Polymetal International said on Tuesday that third-quarter gold equivalent production had decreased by 8% year-on-year to 437,000 ounces.

Polymetal stated the drop came as results reverted to the mean following its all-time quarterly production record set in the third quarter of the prior year.

GE output for nine months ended 30 September was down 4% to 1.15m ounces, driven by planned grade declines at its Kyzyl, Svetloye and Voro projects.

The FTSE 100-listed firm stated revenue for the quarter declined by 7% year-on-year to $819.0m, driven by lower gold and silver prices. Year-to-date revenue reached $2.09bn, up 4% year-on-year.

Net debt marginally increased to $1.90bn as the company generated substantial free cash flows and paid an interim dividend of $200.0m, or $0.45 per share.

While Polymetal acknowledged that Covid-related transportation restrictions at railway and seaports in China had persisted, the group said it had "successfully shortened" concentrate transit times by switching from bulk to container shipping, with the lag between sales and production decreasing significantly ahead of its expected elimination by the year-end.

Polymetal kept its total cash cost and all-in sustaining cash cost guidance was unchanged at $700.00-750.00/gold equivalent per ounce and $925.00-975.00/GE per ounce, respectively.

Chief executive Vitaly Nesis said: "Start of production at Nezhda capped a solid Q3 performance. Polymetal's portfolio of mines delivered results in line with the budget with the company firmly on track to meet its full-year production guidance."

As of 0900 BST, Polymetal shares were down 0.14% at 1,416.0p.