Polymetal posts record full-year earnings

Gold and silver producer Polymetal posted record full-year earnings on Wednesday thanks to strong commodity prices, as it reiterated its production guidance.

In the year to the end of December 2019, adjusted earnings before interest, tax, depreciation and amortisation rose 38% from 2018 to a record $1.08bn amid higher volumes, higher commodity prices and stable costs.

Revenue increased 19% to $2.25bn, with average realised gold and silver prices up 13% and 11%, respectively. Gold sales rose 14% year-on-year, but silver sales declined 14%.

Net debt fell to $1.48bn from $1.52bn at the end of December 2018 and the company declared a dividend of $0.82, up from $0.48 the year before.

Polymetal reiterated its production guidance of 1.6 million ounces for each of 2020 and 2021. It said that traditionally, production in both years will be weighted towards the second half due to seasonality.

Chief executive officer Vitaly Nesis said: "We are pleased to report record earnings and solid free cash flow for the year underpinned by a robust operating performance and strong commodity prices.

"We have also advanced our key strategic projects, reduced net debt and paid substantial dividends."