OREANDA-NEWS. Polymetal International plc is pleased to announce the Group's financial results for the six months ended 30 June 2015.

Revenue in 1H 2015 decreased by 11% to USD 648 million compared to 1H 2014 ("year-on-year") driven by gold and silver prices decreasing 7% and 18% respectively year-on-year. The volume of both gold and silver sold was largely unchanged from 1H 2014, with gold equivalent sold lower by 4% to 537 Koz year-on-year driven by an adverse movement in the gold/silver price ratio.

Group Total cash cost ("TCC") were USD 552 per gold equivalent ounce ("GE oz"), down 14% compared to 2H 2014 ("half-on-half") and down 12% year-on-year on the back of robust operating performance across the portfolio and significant Russian Rouble depreciation against the US Dollar, which more than offset the combined negative impact of domestic inflation and change in gold/silver price ratio.

All-in sustaining cash costs ("AISC")1 amounted to USD 786/GE oz, a decrease of 16% year-on-year, mainly driven by a reduction in TCC during the period, combined with the reduction in per ounce sustaining capital and exploration expenditure at the operating mines.

Adjusted EBITDA was USD 297 million, a decrease of 4% compared to 1H 2014, driven mainly by a decline in commodity prices largely offset by strong cost performance. Adjusted EBITDA margin was 46% compared to 43% in 1H 2014;

Net earnings2 were USD 98 million. Underlying net earnings (adjusted for the after-tax amount of impairment charges/reversals and forex exchange loss) were USD 118 million (1H 2014: USD 124 million), down 5% year-on-year.

Net debt at 30 June 2015 decreased by USD 18 million to USD 1,231 million (31 December 2014: USD 1,249 million), while the Company paid dividends of USD 139 million during the period3. Free cash flow was USD 77 million, compared to USD 29 million a year earlier, and is expected to be even stronger in the second half of the year due to the planned de-stockpiling at Mayskoye and the seasonal reduction of the timing gap between production and sales.

The Company reaffirms its annual production guidance of 1.35 Moz of gold equivalent in 2015 and reduces its full-year Total cash cost guidance from USD 575-625/GE oz to USD 525-575/GE oz and its All-in sustaining cash costs guidance from USD 750-800/GE oz to USD 700-750/GE oz on the back of continued weakness of the Russian Rouble and expectation of a continued strong operating performance.