Russia's Largest Gold Producer Recorded Huge Spike in Core Earnings

SEATTLE (Scrap Monster): Polyus- Russia’s largest gold producer reported 25% surge in first quarter 2021 core earnings. The earnings hit $739 million, aided by boosted gold sales and robust precious metals prices. The revenue rose by 18% to $1 billion. Also, it is on track for a capital expenditure spending in the range between $1 billion and $1.1 billion during the current year.

The total gold sales volume by the company has dropped by 31% quarter-on-quarter during Q1 2021 to 569,000 ounces. This was mainly on account of lower refined gold volumes at Olimpiada, Blagodatnoye and Natalka. The adjusted EBITDA for the quarter amounted to $739 million, down significantly by 35%, compared to $1,138 million in the previous quarter, primarily due to lower gold sales volumes. The capital expenditure totalled $127 million during the period.

The Board of Directors recommended dividends in the amount of 387.15 Russian roubles per ordinary share for the second half of 2021. It recommended 7th June, 2021 as the record date for the dividend.

During the first quarter of the year, the company allocated a sum of $35 million towards preventing the spread of the Covid-19 pandemic. It completed the $60 million expansion of the Verninskoye mill, well ahead of initial schedule.