Polymetal Q3 revenues drop despite higher gold production

Miner Polymetal reported a drop in third-quarter revenues on Wednesday amid weaker metal prices and increased inventories as a result of supply chain woes.

Polymetal said revenues fell 13% year-on-year to $714.0m despite seeing gold production rise 7% to 490,000 ounces as contributions from its Nezhda asset offset lower output from its Mayskoye and Kyzyl mines. Silver production increased by 10% to 5.0m ounces.

The London-listed group reiterated its full-year gold equivalent production guidance of 1.7m ounces and also stood by its production cost guidance.

Polymetal also highlighted that it had experienced "significant disruption" in traditional supply chains and sales channels despite not being directly targeted by Western sanctions against Russia-linked companies back in March.

Net debt stood at approximately $2.8bn at the end of the third quarter, before decreasing to $2.7bn on 31 October.

Chief executive Vitaly Nesis said: "In Q3, Polymetal stayed on track to meet our full-year guidance of 1.7m ounces GE. The company has successfully completed the restructuring of its sales channels and started to unwind accumulated inventory. We expect strong positive free cash flows in Q4."

Reporting by Iain Gilbert at Sharecast.com