Proactive Investors 2 Nov 222 Nov 2022 12:51
Polymetal International PLC (LSE:POLY) posted a fall in third-quarter revenue on lower metal prices and higher inventories due to supply chain issues.
Revenue for the quarter dropped 13% year-on-year to US$714mln even as gold and silver production rose for the Russian and Kazakhstan-focused company.
Gold equivalent (GE) production grew 7% year-on-year to 490,000 ounces as a contribution from its Nezhda mine in Russia offset lower output from its Mayskoye and Kyzyl operations, also in Russia.
The London-listed miner reiterated its 2022 GE production guidance of 1.7 million ounces and kept its production costs guidance unchanged.
It expects production to remain stable at around 1.7 million ounces a year in 2023 and 2024, subject to supply chain risks, and plans to release its cost guidance for 2023 in late January 2023.
During the first nine months of 2022, a total of 198,000 ounces of finished goods inventory was accumulated across the group’s Russian mines.
It said export sales resumed at full speed late in the third quarter and that management expects the gap between production and sales to be closed by the end of the year as it ramps up exports to various Asian markets.
Polymetal, which was ejected from the FTSE 100 in March along with several other Russia-linked companies, previously noted significant disruption in traditional supply chains and sales channels even though it was not directly targeted by Western sanctions.