Miner Polymetals (POLY.L) announced news that it will surpass current gold production guidance levels by around 5%. In the first half of the year the company increased production by 17%.
Quarterly gold equivalent production in the second quarter was 335 Koz, up 4% year-on-year. Continued robust performance at the Amursk POX as well as improved grades and throughput at Dukat and Omolon more than offset planned grade erosion at Varvara and Khakanja. Quarterly gold production was 196 Koz, up 3% year-on-year. Silver production in Q2 was 8.1 Moz, up 8% year-on-year.
Net debt at 30 June 2014 decreased by US$ 7 million compared to 31 December 2013 to US$ 1,038 million while the Company paid dividends of US$ 31 million during the period. Free cash flow generation is expected to be significantly stronger in the second half of the year due to the planned de-stockpiling at Mayskoye and the seasonal reduction of the gap between production and sales.
The Company has announced the signing of the definitive agreement to purchase Kyzyl Project, a large gold deposit in Kazakhstan with JORC-compliant reserves of 7 Moz of gold at 7,5 g/t. The circular to shareholders on the proposed acquisition was mailed on 14 July 2014 and the General Meeting of Shareholders will take place on 14 August 2014. If approved by shareholders, the transaction is expected to close in Q4 2014.
“Polymetal is consistently delivering robust operating performance”, said Vitaly Nesis, CEO of Polymetal, commenting on the results. “We generate meaningful free cash flow at the current commodity prices and expect this trend to strengthen in the second half of the year, which should allow us to continue paying regular dividends, subject to Polymetal’s stated dividend policy.”
Miner Polymetals (POLY.L) announced news that it will surpass current gold production guidance levels by around 5%. In the first half of the year the company increased production by 17%.
Quarterly gold equivalent production in the second quarter was 335 Koz, up 4% year-on-year. Continued robust performance at the Amursk POX as well as improved grades and throughput at Dukat and Omolon more than offset planned grade erosion at Varvara and Khakanja. Quarterly gold production was 196 Koz, up 3% year-on-year. Silver production in Q2 was 8.1 Moz, up 8% year-on-year.
Net debt at 30 June 2014 decreased by US$ 7 million compared to 31 December 2013 to US$ 1,038 million while the Company paid dividends of US$ 31 million during the period. Free cash flow generation is expected to be significantly stronger in the second half of the year due to the planned de-stockpiling at Mayskoye and the seasonal reduction of the gap between production and sales.
The Company has announced the signing of the definitive agreement to purchase Kyzyl Project, a large gold deposit in Kazakhstan with JORC-compliant reserves of 7 Moz of gold at 7,5 g/t. The circular to shareholders on the proposed acquisition was mailed on 14 July 2014 and the General Meeting of Shareholders will take place on 14 August 2014. If approved by shareholders, the transaction is expected to close in Q4 2014.
“Polymetal is consistently delivering robust operating performance”, said Vitaly Nesis, CEO of Polymetal, commenting on the results. “We generate meaningful free cash flow at the current commodity prices and expect this trend to strengthen in the second half of the year, which should allow us to continue paying regular dividends, subject to Polymetal’s stated dividend policy.”