Polyus rubles EBITDA falls 3% to 99.2 bln rubles, dollar figure up 11% to $1.7 bln in 2017
MOSCOW. Feb 15 (Interfax) - PJSC Polyus saw its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fall 3% in 2017 to 99.189 billion rubles, the No. 1 Russian gold miner said in a report to International Financial Reporting Standards.
Revenue was also down 3%, to 158.683 billion rubles. Net profit fell 24 to 72.19 billion rubles and net profit attributable to shareholders dropped 23% to 72.18 billion rubles.
Polyus also disclosed results expressed in dollars, according to which adjusted EBITDA rose 11% to $1.702 billion, which was slightly above the $1.697 billion that analysts predicted in a consensus forecast for Interfax.
Net profit fell 14% to $1.241 billion rubles while profit attributable to shareholders rose 7% to $1.015 billion rubles.
High net profit in 2016 was driven partly by non-cash items, including FX translation and derivatives gains.
Group TCC decreased to $364 per ounce from $389 per ounce in the previous year. The 13% ruble appreciation was offset by strong operational results and efficiency improvement initiatives. AISC increased to $621 per ounce, up 9% compared to the previous year reflecting mainly higher stripping expenses.
Net debt decreased to $3 077 billion at the end of 2017 from $3.241 billion as at the end of 2016. Net debt/adjusted EBITDA decreased to 1.8x at the end of 2017 compared to 2.1x at the end of 2016 due to higher adjusted EBITDA and a gradual decline in net debt during the period.
Total debt fell 14% to $4.281 billion while cash and cash equivalents fell 31% to $1.204 billion due to the prepayment of credit facilities and dividend payments for the second half of 2016 and the first half of 2017. The company prepaid $1.563 billion in the year, and bank funding accounted for 46% of its debt portfolio and public debt for 54% at end-2017. Since the beginning of 2018, Polyus has placed $500 million in Eurobonds and $250 million in convertible bonds and has reached agreement with Sberbank of Russia to prepay up to $1 billion more on loans.
Polyus operating and financial highlights:
| 2017 | 2016 | Change | Q4 2017 | Q3 2017 | Change | |
| Gold produced, '000 oz | 2 160 | 1 968 | 10% | 580 | 642 | (10%) |
| Gold sold, '000 oz | 2 158 | 1 915 | 13% | 597 | 578 | 3% |
| Average realized refined gold price (excluding effect of Strategic Price Protection Program) ($/ounce) | 1260 | 1250 | 1% | 1275 | 1279 | (0%) |
| Average realized refined gold price (including effect of Strategic Price Protection Program) ($/ounce) | 1271 | 1287 | (1%) | 1275 | 1279 | (0%) |
| Total revenue, $ mln | 2 721 | 2 458 | 11% | 743 | 744 | (0%) |
| Operating profit, $ mln | 1 455 | 1 361 | 7% | 391 | 410 | (5%) |
| Net profit, $ mln | 1 241 | 1 445 | (14%) | 267 | 371 | (28%) |
| Adjusted net profit, $ mln | 1 015 | 952 | 7% | 242 | 298 | (19%) |
| Adjusted net profit margin (%) | 37% | 39% | (2 pp) | 33% | 40% | (7 pp.) |
| Adjusted EBITDA, $ mln | 1 702 | 1 536 | 11% | 465 | 475 | (2%) |
| Adjusted EBITDA margin (%) | 63% | 62% | 1 pp | 63% | 64% | (1 pp) |
| Net cash flow from operations, $ mln | 1 292 | 1 178 | 10% | 344 | 398 | (14%) |
| Capex, $ mln | 804 | 466 | 73% | 279 | 224 | 25% |
| TCC, $/oz | 364 | 389 | (6%) | 324 | 380 | (15%) |
| AISC, $/oz | 621 | 572 | 9% | 662 | 599 | 11% |
Polyus is Russia's largest gold producer, mining hardrock and alluvial deposits in the Krasnoyarsk territory, Irkutsk, Magadan and Amur regions and Yakutia. Polyus Gold International Limited (PGIL), the beneficiary of which is Suleiman Kerimov's son Said, is the principle shareholder in PJSC Polyus with 82.44% of shares, the free float is 16.34% and the rest of the shares are held in treasury.