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Polymetal International's revenues rose 12% for the first half of 2021, to $1.2bn, driven by higher metal prices.
Average realised gold and silver prices tracked market dynamics and increased by 8% and 59%, respectively. Gold equivalent production was 714 Koz, a marginal decrease of 1% year-on-year.
Gold sales remained stable year-on-year at 595 Koz but lagged production by 40 Koz mainly due to concentrate in transit build-up at Kyzyl, the company said.
Meanwhile, silver sales were down 19% to 8.0 Moz, due to a lag between silver concentrate production and sales, which is expected to close in 2H 2021.
Group Total Cash Costs were $712/GE oz for the period, within the company's guidance of $700-750/GE oz, and up 12% year-on-year due to above-CPI inflation in the mining industry and full-period impact of Covid-related costs, as well as planned decline in grades processed at Kyzyl and Albazino.
Net earnings were $419m, with basic earnings per share of $0.89 per share, reflecting the increase in operating profit. Underlying net earnings increased by 15% to $422m.
An interim dividend of US$ 0.45 per share, representing 50% of the Group's underlying net earnings for the first half of the year, has been approved by the board in accordance with the dividend policy. A final dividend for 2020 of US$ 0.89 per share (total of US$ 421 million) was paid in May 2021.
Polymetal has also announced that the board of directors has approved an accelerated development of the open-pit mine at Prognoz with ore processing at the Nezhda concentrator. First payable concentrate production is expected in Q3 2023.
"The decision to process ore from Prognoz at Nezhda ensures optimal allocation of human and financial capital within Polymetal. Fast-track development significantly reduces CAPEX requirements and project execution risks, while bringing cash flows forward and lowering environmental footprint", said Vitaly Nesis, group CEO of Polymetal.