Polyus sees EBITDA drop 9% in rubles, rise 10% in USD to $762 mln
MOSCOW. Aug 14 (Interfax) - PJSC Polyus , Russia's biggest gold producer, reported adjusted EBITDA of 44.11 billion rubles for the first half of 2017, down 9% from the same period of 2016.
The company's revenue slumped 5% to 71.475 billion rubles in the first half, Polyus said in a financial statement to International Financial Reporting Standards (IFRS).
However, net profit attributable to shareholders rose by 1% to 35.261 billion rubles. This was largely due to income from investment activities - Polyus earlier sold its stake in the Nezhdaninskoye project.
The company later released results to IFRS in dollars, where adjusted EBITDA grew 10% year-on-year in H1 2017 to $762 million, as predicted by analysts in a consensus forecast for Interfax. Net profit grew 21% to $603 million, with most of the growth occurring in Q1, and adjusted net profit rose 17% to $475 million.
Total cash costs (TCC) and all-in sustaining costs (AISC) rose 1% to $379 and 10% to $610 an ounce, despite the ruble strengthening a substantial 17% compared with H1 2016.
Capex grew 73% to $322 million, due mainly to investment in the Natalka project.
Net debt was $3.084 at end-H1 2017. Net debt/EBITDA was 1.9x.
PJSC Polyus operating and financial results:
| Q2 2017 | Q2 2016 | change | H1 2017 | H1 2016 | change | |
| Gold production (mln ounces) | 488 | 455 | 7% | 938 | 839 | 12% |
| Gold sold (mln ounces) | 496 | 437 | 14% | 983 | 837 | 17% |
| Average realized refined gold price (excluding effect of SPPP*) ($/ounce) | 1261 | 1257 | 0% | 1239 | 1223 | 1% |
| Average realized refined gold price (including effect of SPPP*) ($/ounce) | 1268 | 1292 | (2%) | 1263 | 1277 | (1%) |
| Total revenue, $ mln | 625 | 571 | 9% | 1234 | 1082 | 14% |
| Operating profit, $ mln | 324 | 320 | 1% | 654 | 618 | 6% |
| Net profit, % mln | 104 | 205 | (49%) | 603 | 499 | 21% |
| Adjusted net profit, $ mln | 272 | 204 | 33% | 475 | 405 | 17% |
| Adjusted net profit margin (%) | 44% | 36% | 8 pp | 38% | 37% | 1 pp |
| Adjusted EBITDA, % mln | 379 | 361 | 5% | 762 | 691 | 10% |
| Adjusted EBITDA margin (%) | 61% | 63% | (2) pp | 62% | 64% | (2) pp |
| Net cash inflow from operations, $ mln | 268 | 188 | 43% | 550 | 479 | 15% |
| Capex, $ mln | 190 | 90 | 111% | 322 | 186 | 73% |
| TCC, $/ounce | 379 | 395 | (4%) | 379 | 377 | 1% |
| AISC, $/ounce | 634 | 566 | 12% | 610 | 555 | 10% |
* Strategic Price Protection Program
Polyus Gold is Russia's largest gold producer, mining hardrock and alluvial deposits in Krasnodar territory, Irkutsk, Magadan and Amur regions and Yakutia. The main beneficiary is the son of Suleiman Kerimov, Said.