Polymetal reports record net profit on higher gold prices

Polymetal, one of Russia’s largest gold and silver producers, said on Wednesday its 2020 net earnings rose to a record high of $1.1 billion due to stronger global prices for precious metals and higher sales of gold.

“We are pleased to report record net earnings for the year amidst a challenging global backdrop,” Vitaly Nesis, Polymetal chief executive said in a statement.

Its 2020 revenue rose by 28% to $2.9 billion as gold and silver prices jumped by 27%.

The company’s board of directors recommended a final dividend for 2020 of $0.89 per share, or $419 million in total, Polymetal said. This will bring the total 2020 dividend to $608 million.

The miner is on track to produce 1.5 million troy ounces of gold equivalent, which is a mix of gold and other metals, in 2021 and 1.6 million ounces in 2022, it said. Its 2021 total cash costs are expected in the range of $700-750 per ounce.

(By Polina Devitt and Anastasia Lyrchikova; Editing by Louise Heavens)