Polymetal reports record net profit on higher gold prices

Voro mine. Image from Polymetal. 

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)


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