Poyus Gold (LSE - PGIL, OTC (US) – PLZLY) reported a slight increase in production volumes but a drop in revenue in 2013, says an official statement.
According to Russia's gold giant, production climbed from 1.57 million ounces in 2012 to 1.65 million ounces (or 51.3 tonnes) last year, up 5 percent.
However, due to the falling prices, the company's earnings took a 12 percent dive to $2.3 billion due to a 17 percent decline in gold prices.
According to the statement, 2014 capex are expected to total $650-750 million. 2013 opex amounted to $1.2 billion.
Among other highlights, the company reported a significant increase in gold production at Olimpiada (+6%), Titimukhta (+12 percent) and Verninskoye (+95 percent).
“Amid an almost unprecedented decline in gold prices, Polyus Gold delivered another year of operational excellence with production increasing 5 peercent placing us towards the higher end of the guidance. This enabled us to mitigate in part the 17 percent decline in gold prices and achieve sales of USD 2.3 billion. Our continued drive to reduce costs and enhance efficiency saw the sixth consecutive year of organic production growth,” said Pavel Grachev, Interim CEO of Polyus Gold.
More figures from the report:
• Polyus Gold moved 66 million cubic meters of rock in total in 2013 compared to 67 million cubic meters in 2012;
• the average stripping ratio for the Company in 2013 was 1.8 m³/t (2012: 2.4 m³/t);
• a total of 30 million tonnes of ore was mined in 2013, an increase of 28 percent compared to 2012;
• with the exception of Kuranakh, recovery rates were up across the business in both Q4 and the full year 2013, most importantly, at Olimpiada (+3 percent) and Blagodatnoye (+4 percent) in Q4 2013.
Author: Mikhail Vesely