Polymetal declares $0.17 dividend on back of solid H1 performance

MINEX Forum | August 21, 2018 | Views: 111 | Source: Mining Weekly

LSE-listed Polymetal International has declared an interim dividend of $0.17 a share for the first half of the year, higher than the $0.14 a share for the first half of 2017, the company reported on Tuesday.

The dividend distribution, to be paid on September 28, represents 50% of the group’s underlying net income for the half-year period of about $77-million.
Polymetal CEO Vitaly Nesis said strong earnings were on the back of solid operational delivery in the first six months of the year. The company expects stronger production and free cash flow generation for the second half and remains focused on progressing its growth pipeline, which includes ramp-up of its gold mine Kyzyl, in Kazakhstan.

Revenue increased by 16% to $789-million, compared with the first half of 2017, primarily driven by an 11% increase in gold equivalent (GE) production.

Gold sales were 445 000 oz, up 17% year-on-year, while silver sales were down 2% to 12.1-million ounces, in line with production volume dynamics. Nesis noted average realised prices largely tracked market dynamics; gold was up 6% year-on-year, while silver was down 4%.

Adjusted earnings before interest, taxation, depreciation and amortisation (Ebitda) was $305-million – an increase of 19% year-on-year – driven by higher production volumes and commodity prices. The adjusted Ebitda margin increased to 39%, compared with 38% in the first half of 2017.

Polymetal remains on track to meet its 2018 production guidance of 1.55-million GE ounces. All-in-sustaining costs are expected to be within guidance range of between $875 to $925 per GE ounce.

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