Polyus increases Q3 dollar EBITDA 7% to $475 mln, above forecast
MOSCOW. Nov 9 (Interfax) - PJSC Polyus increased adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) 7% year-on-year to $475 million in Q3, the gold miner said in a report to International Financial Reporting Standards.
Analysts said in a consensus forecast for Interfax that they thought Polyus would report $463 million EBITDA for Q3.
The EBITDA margin was 64%, up from 63% a year previously.
Sales revenue grew 6% year-on-year to $744 million, just below a forecast $748 million, on the back of higher gold sales.
Gold sales grew 10% to 578 koz as mine output increased.
The total cash cost (TCC) fell in Q3 to $380/oz, from $406 a year previously, while all-in sustaining costs (AISC) grew 7% to $599/oz.
Adjusted net profit fell 1% year-on-year to $298 million.
Capex was $224 million, with most of it going on the Natalka project, due to reach design capacity at end-2018.
Net debt grew to $3.151 billion from $3.084 billion during Q3 2017, due mainly to dividends for H2 2016 and H1 2017, but paid in Q3 2017. Net debt/adjusted EBITDA remained at 1.9x.
PJSC Polyus operating and financial results:
| Q3 2017 | Q3 2016 | Change | 9M 2017 | 9M 2016 | Change | |
| Gold production (koz) | 642 | 555 | 16% | 1,580 | 1,395 | 13% |
| Gold sold (koz) | 578 | 527 | 10% | 1,561 | 1,365 | 14% |
| Average realized refined gold price (excluding effect of Strategic Price Protection Program) ($/ounce) | 1,279 | 1,335 | (4%) | 1,254 | 1,265 | (1%) |
| Average realized refined gold price (including effect of Strategic Price Protection Program) ($/ounce) | 1,279 | 1,344 | (5%) | 1,269 | 1,302 | (3%) |
| Total revenue, $ mln | 744 | 706 | 5% | 1,978 | 1,788 | 11% |
| Operating profit, $ mln | 410 | 401 | 2% | 1,064 | 1,019 | 4% |
| Profit for the year, $ mln | 371 | 390 | (5%) | 974 | 889 | 10% |
| Adjusted net profit, $ mln | 298 | 295 | (1%) | 773 | 700 | 10% |
| Adjusted net profit margin (%) | 40% | 42% | - | 39% | 39% | - |
| Adjusted EBITDA, $ mln | 475 | 444 | 7% | 1,237 | 1,135 | 9% |
| Adjusted EBITDA margin (%) | 64% | 63% | - | 63% | 63% | - |
| Net cash flow from operations, $ mln | 398 | 393 | 1% | 948 | 872 | 9% |
| Capex, $ mln | 224 | 109 | 106% | 546 | 295 | 85% |
| TCC, $/oz | 380 | 406 | (6%) | 380 | 387 | (2%) |
| AISC, $/oz | 599 | 560 | 7% | 606 | 557 | 9% |
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.