Polymetal reiterates annual guidance despite decline in third quarter revenue

Precious metals producer Polymetal International said revenue fell in the first nine months of the year on the back of lower prices.

In the nine months to 30 September, the group posted an 11% year-on-year decline in revenue to $1.05bn, while revenue in the quarter to the end of September declined by the same margin to $402m.

Gold sales increased 3% to 261,000 ounces in the quarter to September, lifting nine-month sales to 614,000 ounces, a 1% year-on-year increase.

Meanwhile, silver sales in the three months to end of September rose 15% year-on-year to 8.4m, while nine-month sales increased 5% to 22.4m ounces.

Polymetal said it remains in a “strong position” to meet its full-year guidance to produce 1.35m ounces of gold equivalent this year at a cash cost of between $525 to $575.

The company maintained its outlook for 2016, saying it expected to produce 1.35m ounces of metal.

Polymetal shares advanced 0.17% to 591.00p at 0845 BST on Tuesday.