Polymetal’s revenue rises 20% in first quarter on higher gold and silver prices


Polymetal International PLC (LON:POLY) said revenue in the first quarter increased 20% year-on-year to US$593mln (GBP426mln) as a result of higher gold and silver prices and improved production.

The Russia and Kazakhstan-based precious metals miner reported that gold equivalent production grew 3% from the year-earlier quarter to 375,000 ounces as record quarterly output from Varvara and a strong performance across other assets more than offset the planned grade-driven decline at Kyzyl.

The FTSE-100 member confirmed its 2021 production guidance of 1.5 million gold equivalent ounces and its cost guidance of US$700-750 an ounce on a total cash cost basis.

Net debt decreased by US$29mln during the quarter to US$1.32bn.

“In Q1 2021, Polymetal delivered strong production, strong free cash flow, and steady progress across development projects,” said chief executive Vitaly Nesis. “COVID-related construction cost inflation remains a pressing concern despite gradual improvements in the epidemiological situation.”


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