Polymetal sticks to guidance after solid Q2

Gold equivalent (GE) production fell 6% to 339 thousand ounces (koz) in the three months to the end of June from a year earlier because of planned grade declines at the Kyzl and Albazino mines, Polymetal said. Revenue rose 6% to $681m as metal prices increased.

The FTSE 100 company confirmed its 2021 production guidance of 1.5 million ounces of GE and its cost guidance of $700-750 per GE oz for total cash costs and $925-975/GE oz for all-in sustaining cash costs.

Polymetal said construction and development at its Russian Nezhda gold deposit and POX-2 processing centre were on schedule in a tight market for construction contractors. Nezhda has installed key equipment and is on track to produce its first concentrate in early November.

"In Q2, Polymetal delivered steady results. All producing mines made budget targets while mechanical completion and start of commissioning at Nezhda represented a key development milestone", Vitaly Nesis, Polymetal's chief executive, said.

Polymetal shares fell 0.4% to £15.12 at 08:27 BST.