Polyus reports 27% drop in core profit as sales fall

Olympiada mine. Image from Polyus.

Russia’s largest gold producer Polyus on Wednesday reported a 27% drop in adjusted EBITDA for 2022, to $2.6 billion, on lower sales.

Polyus has not been directly targeted by the sanctions imposed by the West, but has suffered, along with other Russian commodity producers, from the fallout as Western banks and shippers reduced dealings with Russian companies.

The European Union and UK in July imposed a ban imports of Russian gold.

Falling income was driven by a decline in production volume as well as a lower average realised refined gold price compared to the previous year, the company said.

Net profit declined 32% to $1.6 billion on the back of a 14% fall in revenue to $4.3 billion.

Overall gold sales were down 11% to 2.4 million ounces while Polyus’ output fell 6% to 2.5 million ounces.

The company said it expects gold output of 2.8 million-2.9 million ounces in 2023 and capital expenditure to rise to $1.3 billion-$1.4 billion from $1.1 billion in 2022.

The company said its board of directors had yet to make a dividend recommendation for 2022 but emphasised adherence to its existing payment policy.

“In making the recommendation on dividends, the board will take into account the constantly changing economic environment and its impact on the company’s business,” it added.

Under its current dividend policy, Polyus pays out 30% of its annual earnings before interest, taxes, depreciation and amortisation. Last September the board decided not to pay a final dividend on 2021 results, citing current market conditions.

(By Anastasia Lyrchikova; Editing by Kirsten Donovan)


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