Russia's Polyus reports record EBITDA on high gold prices
MOSCOW - Russia's largest gold producer Polyus on Wednesday reported record production and core earnings for 2024 thanks to high gold prices in spite of Western sanctions on Russia and the company.
Gold prices are up more than 11% this year at $2 918.99 an ounce, after rising 27% last year, the precious metal's best performance in over a decade.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 49% to $5.7-billion on revenue of $7.3-billion, Polyus said. Net income rose 86% year on year to $3.2-billion.
"(The) main drivers were higher gold sales volumes and higher gold prices during the reporting period," Polyus said.
Russia had a 9% share of global gold production in 2023, second only to China. All major Russian gold miners, including Polyus, are under Western sanctions and in 2022, the United States, Britain and the European Union banned imports of Russian gold.
Western sanctions have cut many Russian industrial companies' access to critical equipment and forced them to look to alternative import sources from countries like China.
Polyus in December blamed sanctions for development costs at its giant Sukhoi Log gold deposit in Siberia nearly doubling to $6-billion.
Polyus confirmed plans to pay dividends twice a year, with 30% of EBITDA remaining the target. The board will consider fourth-quarter dividends on March 10.
The company beat production guidance to record a 7% increase in output to 3 million ounces in 2024. Sales rose by 11% to 3.1-million ounces.
Polyus said it expects its gold output to fall to 2.5 million to 2.6 million ounces this year, while capital expenditure is forecast at $2.2-billion to 2.5-billion, up from $1.26-billion in 2024, as it actively develops the Sukhoi Log project.
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