Polymetal reveals revenues fell 7% during the third quarter
By Rob Griffin
12:50, 26 October 2021
Polymetal International has revealed that its revenue for the third quarter fell 7% year-on-year as a result of lower gold and silver prices.
The FTSE 100-listed miner, which has assets in Russia and Kazakhstan, also reported that gold equivalent production declined 8% year-on-year to 437,000 ounces.
This means the level has come off the all-time quarterly production record that had been set in the third quarter of 2020.
The company’s shares had slipped 2% to £13.88 by 1.30 pm in London.
Russia’s Covid wave
In a statement, the company said net debt marginally increased for the quarter to $1.9bn, as it generated substantial free cash flows and paid an interim dividend of $0.45 per share.
It also noted that Russia is going through its fourth wave of the Covid-19 pandemic, with multiple daily highs set recently for both new cases and deaths.
“At Polymetal, the number of active cases rose to 72 as of the date of this press release,” it stated. “The epidemiological situation remains under control with operations and projects continuing undisrupted despite several localised outbreaks.”
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Transport restrictions
Polymetal also reported that Covid-related transportation restrictions still persisted on railways and at seaports in China.
“However, the company successfully shortened concentrate transit times by switching from bulk (boxcar) to container shipping,” it said.
Meanwhile, the lag between sales and production, as well as excess working capital, decreased significantly and is expected to be eliminated by the year-end.
Read more: Polymetal starts production at its Nezhda gold-silver mine
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