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4/15/2016, 10:53 AM (Source: TeleTrader)
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Polymetal reports lower gold production, higher debt

Polymetal International Plc reported a net debt increase of 7% in the first quarter of 2016, rising from $1,298 million in December to $1,383 million on March 31, according to earnings press release.

Polymetal produced an equivalent of 260 thousand ounces of gold in the first quarter, a drop 4% when compared to the same period a year ago. Quarterly gold production was 169 thousand of ounces, down 9% year-on-year. Silver production increased 6% year-on-year to an equivalent of 7.2 million ounces.

The company reported quarterly sales at 243 thousand ounces, leaving an inventory of 17 thousand ounces, "mostly due to seasonal factors, including New Year stoppages at refineries and annual contract re-negotiation with silver concentrate off-takers. This lag in sales is expected to be fully reversed during the year," said the release.

The mining company cited degradation in one of its main field in Okhotsk, Russia, but added that other operations such as in Varvara performed better. It expected improvements from recently purchased Komarovskoye deposit in Kazakhstan, and is in the process of acquiring Kapan polymetallic mine in Armenia.

Jersey, Channel Islands-registered mining and metals company, specialised in precious metals production, re-confirmed its production guidance of 1.23 million ounces of gold equivalent in 2016 financial year. It gave a cash cost guidance $525-$575 for equivalence of gold ounce (GE oz) and all-in sustaining cash costs of $700-$750/GE oz.

Polymetal International Plc shares dug in 2.13% to 689.00p in London by 10:49 a.m. CET, and last closed up 6.97% at $11.81 at Nasdaq on Thursday.

Gold spot price added 0.21% to $1,230.19 per troy ounce; silver rose 0.39% to $16.209 per fine ounce; platinum inched up 0.03% to 987.31 per fine ounce; palladium climbed up 0.36% to $562.00 per fine ounce, all by 10:53 a.m. CET.

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Image: Tomas Sereda © Getty Images (18982816)

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