24 Jan 2019 18:09

Polyus expecting less than $800 mln capex for 2018, TCC guidance still stands

MOSCOW. Jan 24 (Interfax) - PJSC Polyus expects capex was below guidance of $800 million in 2018, the gold miner's CFO, Mikhail Stiskin, said on a conference call.

This is due partly to the postponement until 2019 of some capex on brownfield projects in Krasnoyarsk and the Natalka infrastructure project, and it reflects a weaker ruble at the end of 2018. On the other hand, Stiskin said, it will adversely affect capex in 2019 - Polyus has said it expects this to fall to $650 million.

Polys originally gave $850 million guidance for 2018 capex. Actual capex for 9M 2018 was $547 million, and the company said guidance could be reviewed.

The company stands by guidance for total cash cost (TCC) - less than $400/oz - in 2018, Stiskin said.

Ongoing capacity expansion, certain operating initiatives and a weaker ruble will help the company to offset inflation he said. Average TCC for 9M 2018 was $355/oz, down 7% year-on-year.