(Alliance News) - Russian gold miner Polymetal International on Wednesday doubled its interim dividend after reporting strong results.
Polymetal International reported a strong financial performance in the first half of the year amid a challenging global backdrop.
Gold miners have benefited from a sharp rise in the gold price which is up 27% so far in 2020, quoted at USD1,919.34 an ounce early Wednesday.
For the six months to June 30, Polymetal's revenue was up 21% to USD1.14 billion from USD941 million last year and net earnings more than doubled to USD381 million from USD153 million.
Polymetal declared an interim dividend of USD0.40, twice as high as USD0.20 paid out last year.
Looking ahead, Polymetal said it remains on track to meet 2020 production guidance of 1.5 million ounces of gold equivalent and kept its full-year all-in-sustaining cash cost guidance in a range between USD850 to USD900 per ounce.
"We are pleased to report a strong financial performance in the first half of the year amidst a challenging global backdrop. Favourable commodity prices and our tight cost control, as well as the impact of foreign exchange and improved grades, drove a significant increase in the group's earnings, cash flow and dividends. Importantly, we've been able to minimise the impact of the Covid-19 pandemic on our people, communities, and operations. Our key development projects continue to progress on schedule," said Chief Executive Vitaly Nesis.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 0.1% at 6,045.00
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Hang Seng: down 0.1% at 25,467.40
Nikkei 225: closed marginally lower, 5.91 points, at 23,290.86
DJIA: closed down 60.02 points, or 0.2%, at 28,248.44
S&P 500: closed up 12.34 points, or 0.4%, at 3,443.62
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GBP: firm at USD1.3141 (USD1.3123)
EUR: flat at USD1.1815 (USD1.1818)
Gold: firm at USD1,919.34 per ounce (USD1,918.27)
Oil (Brent): firm at USD45.93 a barrel (USD45.83)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
1200 CEST France OECD quarterly GDP growth
0700 EDT US MBA weekly mortgage applications survey
0830 EDT US advance report on durable goods
1030 EDT US EIA weekly petroleum status report
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Storm Laura was upgraded to a destructive hurricane on Tuesday and is forecast to make landfall along the Texas or Louisiana coasts on Wednesday night, after earlier causing 24 deaths in the Caribbean.Maximum sustained winds are near 75 miles per hour with higher gusts, the US National Hurricane Center reported, with the storm expected to strengthen over the next day. "Laura is forecast to reach the northwestern Gulf Coast at or near major hurricane intensity Wednesday night," the NHC said. "There is the danger of life-threatening storm surge accompanied by large and dangerous waves" in places, and up to 12 inches of rain could cause flash flooding, it continued. Texas Governor Greg Abbott warned that the storm could reach Category 4 status, the second-highest, with winds of up to 156 mph.
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Storm Francis has moved on after gusts of more than 80mph battered the UK. Wind and rain are expected to lash much of the country overnight, but the worst of the weather is thought to be over. The Met Office has issued yellow warnings for rain that cover Northern Ireland and parts of England, Wales and Scotland until 6am on Wednesday, while a yellow warning for wind is in place for much of England and Wales until 9am. On Tuesday night, the Environment Agency had 36 flood alerts and five flood warnings in place for England. The strongest gusts recorded on Tuesday was the 81mph wind that hit The Needles near the Isle of Wight at around 8pm.
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BROKER RATING CHANGES
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BARCLAYS CUTS SHELL B TO 'UNDERWEIGHT' (EQUAL WEIGHT) - PRICE TARGET 1500 PENCE
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JPMORGAN RAISES INCHCAPE TO 'OVERWEIGHT' ('NEUTRAL') - TARGET 595 (510) PENCE
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GOLDMAN SACHS INITIATES WH SMITH WITH 'BUY' - TARGET 1500 PENCE
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COMPANIES - FTSE 250
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Provident Financial skipped its dividend after the subprime lender swung to an interim loss. For the half-year ended June 30, the company swung to a pretax loss of GBP28 million from a profit of GBP43.1 million last year as revenue fell 11% to GBP445.6 million from GBP501.5 million. Provident said it is not proposing an interim dividend having paid out 9.0 pence last year, as it seeks to preserve capital and provide financial stability. However, it said it intends to resume dividend payments to shareholders as soon as financial conditions normalise. The doorstep lender said it had strong capital and liquidity positions built during the period with regulatory capital of GBP705 million at the end of June. This equates to a CET1 ratio of 35.4% and a surplus of GBP215 million above the minimum regulatory requirement.
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Go-Ahead Group said that the Land Transport Authority of Singapore has granted a two-year contract extension to Go-Ahead Singapore to continue operating around 450 buses in the Loyang region of the island. The extension will begin in September 2021 and run until September 2023. This follows the initial five-year contract which saw the company's entry into the Singapore bus market in September 2016, Go-Ahead said.
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COMPANIES - GLOBAL
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Shares in Chinese e-commerce giant Alibaba jumped to a new record Wednesday in Hong Kong, a day after the group's financial arm filed paperwork for a joint Shanghai and Hong Kong listing. The IPO for Ant Group, the financial technology arm of Alibaba, is being billed as one of the world's largest listings, potentially eclipsing the record USD29 billion raised by Saudi Aramco last year. The company filed paperwork on Tuesday evening for a joint listing closer to home as tensions spiral between the US and China. It did not detail a timetable for its initial public offering or how much money it hopes to raise. But the filing has already created a buzz. Alibaba's shares were up 3.6% at HKD278.80 on Wednesday afternoon in Hong Kong. Alibaba, which is listed in both Hong Kong and New York, is China's largest e-commerce conglomerate and is owned by billionaire Jack Ma.
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Wednesday's Shareholder Meetings
Omega Diagnostics Group
French Connection Group
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
