Polymetal shines as gold production lifts revenue

Strong fourth quarter gold production helped Russian miner Polymetal post a 12% rise in revenue to $586m.

Gold production was up 8% year-on-year to 405,000 ounces for the final quarter and helped take annual production to 1.43m ounces, a rise of 13% and above guidance of 1.4m.

Full year revenues were up 15% to $1.8bn as the company declared there would be no special dividend for 2017 as free cash flow would be distributed to shareholders through the regular dividend at an increased pay-out ratio of 50% of underlying net income.

Polymetal reiterated its gold production guidance for 2018 and 2019 of 1.55m ounces and 1.7m ounces respectively. The main growth drivers will be the ramp-up of the Kyzyl operation, re-commissioning of the oxide circuit at Mayskoye, and incremental improvements at Varvara and Kapan.

"This should offset anticipated grade declines at Khakanja and Voro. As in prior years, production in both years will be weighted towards the second half due to seasonality," Polymetal said.