POLY.L Share News (POLY)

(Alliance News) - Polymetal International PLC on Thursday said it beat 2021 production guidance though costs were ahead of forecasts.

The precious metals miner reported gold equivalent production of 1.7 million ounces in 2021, up 2% on the year before and ahead of original guidance of 1.6 million ounces.

Revenue for the year was stable at USD2.89 billion, after fourth quarter sales were down 6% to USD798 million due to lower commodity prices.

"The lag between silver production and sales originating from very strong December production at Dukat will be closed in H1 2022," the company notes.

All-in sustaining cash costs are expected to be around 5% above the upper end of the guidance range of USD925 to USD975 per ounce. This is expected to rise to around USD1,100 to USD1,2000 in 2022.

For 2022 output, Polymetal reiterated production guidance of 1.7 million ounces, rising to 1.75 million ounces in 2023.

"In 2021, we continued to deliver on our promises despite persistent challenges. Polymetal beat production guidance, maintained solid safety track record, and paid record dividends. The successful ramp-up of Nezhda and steady progress on POX-2 paved the way for the approval of Veduga and ensured the Company remains on its path to consistent and significant long-term growth," said Chief Executive Vitaly Nesis.

"2022 should see another step-up in Polymetal's output at competitive costs," Nesis added.

Shares in Polymetal ended down 5.3% at 1,094.50 pence in London on Thursday.

By Lucy Heming; lucyheming@alliancenews.com

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