Polyus 3Q Profit Rose 72%, Sees Lower Costs in 2020
November 12 2020 - 3:55AM
Dow Jones News
By Jaime Llinares Taboada
Polyus PJSC on Thursday posted a significantly higher profit for
the third quarter and cut its cost forecasts for 2020.
The Russian gold miner made a net profit of $516 million for the
three months to Sept. 30, up from $300 million a year earlier.
However profit fell 25% compared with the second quarter.
Polyus benefited from higher gold production, sales and prices.
In the third quarter production increased 2%, sales volumes were up
6% and average realized prices strengthened 29% from 2019
levels.
In addition, total cash costs declined 10% to $369 per ounce,
and the company has revised full-year cost guidance down to
$375-425 per ounce from the previous $400-$450.
In a separate statement, Polyus said that it has completed a
pre-feasibility study for its Sukhoi Log project in Eastern
Siberia. The mine is forecast to have annual production of 2.3
million ounces, with cash costs of $390 per ounce and initial
capital expenditure of $3.3 billion.
"Sukhoi Log is a greenfield project of unparalleled quality and
scale. We are committed to developing the world's largest untapped
gold deposit, the cornerstone of Polyus' long-term growth strategy,
in the most disciplined and efficient way," Chief Executive Pavel
Grachev said.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
November 12, 2020 03:40 ET (08:40 GMT)
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