23.01.2016, 00:35
Polymetal Announced Production Results for Twelve Months
OREANDA-NEWS. Polymetal International plc is pleased to announce the Group's production results for the fourth quarter and twelve months ended December 31, 2015.
Polymetal reports another year of strong operational delivery. Gold equivalent production for the year (based on 1:60 Ag/Au conversion ratio) comprised 1.40 Moz and exceeded the original production guidance for 2015 of 1.35 Moz by 4%.
Gold production was 861 Koz, down 9% year-on-year, while silver production was 32.1 Moz, an increase of 12% compared to 2014. Gold sales were 864 Koz, down 8% year-on-year while silver sales were 31.2 Moz, up 6% year-on-year, in line with production dynamics and volume.
Polymetal continued to generate free cash flow in the fourth quarter. On the back of robust cash flow generation for the year, the Company paid out USD 127 million of special dividends to shareholders, bringing the total amount of dividends declared during 2015 to USD 216 million.
Net debt at 31 December 2015 was USD 1,298 million, an increase of just USD 30 million compared to 30 September 2015.
Given the persistent change in gold/silver market price ratio, Polymetal has decided to change the gold/silver ratio used in presenting gold equivalent (GE) production from 1/60 to 1/80. The comparative numbers for prior periods and production guidance were restated accordingly in this release. The effect of this restatement on reported production numbers and guidance is summarised in the table below. There is no impact on the projected and reported cash costs metrics as they have been and will continue to be based on actual realised prices. Any further revisions to the new conversion ratio would only be triggered by a change in market ratio by more than 20%.
Gold equivalent production in the fourth quarter (based on the new 1:80 Ag/Au conversion ratio) was 310 Koz, a decrease of 16% year-on-year. Quarterly gold production was 219 Koz, down 27% year-on-year, mainly driven by change of mining method at Mayskoye and planned grade declines at Varvara, Omolon, and Voro. Silver production in the fourth quarter was 7.2 Moz, up 30% year-on-year, driven by continued strong performance at Dukat.
The Company reconfirms its production guidance for 2016 and 2017, which will comprise 1.23 Moz of gold equivalent and for 2017 at 1.30 Moz of gold equivalent (after restatement of the gold/silver price ratio to 1/80).
Polymetal reports another year of strong operational delivery. Gold equivalent production for the year (based on 1:60 Ag/Au conversion ratio) comprised 1.40 Moz and exceeded the original production guidance for 2015 of 1.35 Moz by 4%.
Gold production was 861 Koz, down 9% year-on-year, while silver production was 32.1 Moz, an increase of 12% compared to 2014. Gold sales were 864 Koz, down 8% year-on-year while silver sales were 31.2 Moz, up 6% year-on-year, in line with production dynamics and volume.
Polymetal continued to generate free cash flow in the fourth quarter. On the back of robust cash flow generation for the year, the Company paid out USD 127 million of special dividends to shareholders, bringing the total amount of dividends declared during 2015 to USD 216 million.
Net debt at 31 December 2015 was USD 1,298 million, an increase of just USD 30 million compared to 30 September 2015.
Given the persistent change in gold/silver market price ratio, Polymetal has decided to change the gold/silver ratio used in presenting gold equivalent (GE) production from 1/60 to 1/80. The comparative numbers for prior periods and production guidance were restated accordingly in this release. The effect of this restatement on reported production numbers and guidance is summarised in the table below. There is no impact on the projected and reported cash costs metrics as they have been and will continue to be based on actual realised prices. Any further revisions to the new conversion ratio would only be triggered by a change in market ratio by more than 20%.
Gold equivalent production in the fourth quarter (based on the new 1:80 Ag/Au conversion ratio) was 310 Koz, a decrease of 16% year-on-year. Quarterly gold production was 219 Koz, down 27% year-on-year, mainly driven by change of mining method at Mayskoye and planned grade declines at Varvara, Omolon, and Voro. Silver production in the fourth quarter was 7.2 Moz, up 30% year-on-year, driven by continued strong performance at Dukat.
The Company reconfirms its production guidance for 2016 and 2017, which will comprise 1.23 Moz of gold equivalent and for 2017 at 1.30 Moz of gold equivalent (after restatement of the gold/silver price ratio to 1/80).
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