OREANDA-NEWS. August 25, 2014. Polyus Gold International Limited (LSE - PGIL, OTC (US) - PLZLY, “PGIL”, “Polyus Gold” or the “Company”), the largest gold producer in Russia, today releases its unaudited financial results for the first half of 2014.

Highlights

Gold sales up 15% y-o-y to 751 thousand ounces owing to Verninskoye ramp-up and growth at Olimpiada in 1H 2014.

Revenue down 2% y-o-y to USD 1,007 mln from USD 1,024 mln, due to a decrease in the average realised gold price, which was almost fully offset by an increase in sales volumes.

Profit for the period amounted to USD 253 mln, as compared to the loss of USD 167 mln in 1H 2013, which was caused by significant impairment charges.

Cash and cash equivalents at the end of 1H 2014 amounted to USD 875 mln, slightly up from USD 809 mln at the end of FY2013. Bank deposits increased to USD 302 mln from USD 48 mln over the corresponding period.

Net cash flow from operations up 236% y-o-y due to tighter control over working capital.

Capex of USD 287 mln, down 59% y-o-y primarily due to a reduction in spend on Natalka.

Adjusted EBITDA down 6% to USD 393 mln y-o-y on the back of a 14% decline of the average realized gold price, partly offset by lower costs.

Net debt of USD 370 mln at the end of 1H 2014, slightly up from USD 349 mln at the end of FY 2013.

Net debt/adjusted EBITDA of 0.4x at the end of 1H 2014, flat comparing to the end of FY 2013.
Total cash cost (“TCC”) per ounce sold reduced by 13% y-o-y to USD 662 due to cost-cutting initiatives and the weaker RUB.

All-in sustaining cash cost (“AISC”) per ounce sold declined 18% y-o-y to USD 905 due to the cost optimisation programme and RUB depreciation.