Polymetal boosts EBITDA 30% in H1 to $310 mln, above forecast
MOSCOW. Aug 27 (Interfax) - OJSC Polymetal , Russia's largest silver producer and a leading gold producer, boosted adjusted earnings before taxes, depreciation, and amortization (EBITDA) 30% year-on-year in January-June 2014 to $310 million, the company said.
Analysts from nine investment banks said in an Interfax consensus survey that EBITDA would total $271 million.
In January-June 2014 Polymetal had net profit of $100 million versus loss of $255 million a year before. Adjusted net profit was $101 million.
Polymetal's board of directors decided to pay out dividends from 30% of adjusted net profit in H1 at $0.08 per share. Dividends for H1 2013 were $0.01 per share, meaning this year's interim dividends could be 700% more.
Polymetal IFRS financial highlights for H1 2014:
| H1 2014 | H1 2013 | % | |
| Revenue, $ mln | 727 | 721 | +1% |
| Total cash cost, $/GE oz | 627 | 787 | -20% |
| All-in cash cost, $/GE oz | 938 | 1,210 | -22% |
| Adjusted EBITDA, $ mln | 310 | 239 | +30% |
| Adjusted EBITDA margin | 43% | 33% | +10 p.p. |
| Average realized gold price, $/oz | 1297 | 1441 | -10% |
| Average LBMA gold price, $/ oz | 1290 | 1524 | -15% |
| Average realized silver price, $/oz | 19,1 | 24,3 | -21% |
| Average LBMA silver price, $/oz | 20,1 | 26,6 | -25% |
| Net profit, $ mln | 100 | (255) | - |
| Adjusted net profit, $ mln | 101 | 17 | - |
| Return on equity | 11% | 2% | +9 p.p. |
| Basic EPS, $/share | 0,26 | (0,66) | - |
| Underlying EPS, $/share | 0,26 | 0,04 | - |
| Dividend declared for the period, $/share | 0,08 | 0,01 | - |
| Net debt, $ mln | 1,038 | 1,045* | -1% |
| Net debt/Adjusted EBITDA | 1,55 | 1,75* | -11% |
| Net operating cash flow, $ mln | 141 | 59 | +139% |
| Capital expenditure, $ mln | 105 | 171 | -38% |
| Free cash flow, $ mln | 29 | (125) | - |
* As of December 31, 2013
In comparison with the same period of last year, the average realized price for gold and silver fell by 10% and 21%, respectively. "The price decline was offset by 12% growth in the volume of gold equivalent sold," Polymetal said in statement on its website.
"Adjusted EBITDA margin was 43% compared to 33% in H1 2013," it said.
"Group Total Cash Cost was $627 per gold equivalent ounce (GE oz), down 13% compared to H2 2013 (half-on-half) and down 20% year-on-year due to a robust operational performance, resulting in higher average grades processed and increased throughput across the portfolio, coupled with significant Russian ruble and Kazakh tenge depreciation against the US dollar," the statement said.
"All-in cash costs amounted to $938/GE oz and decreased 22% year-on-year, driven mostly by a reduction in total cash costs during the period, combined with increased production levels and associated reduction in per ounce sustaining capital and exploration expenditure at operating mines," Polymetal said.
"Net debt at June 30, 2014 decreased by $7 million to $1.038 billion (December 31, 2013: $1.045 billion), while the Company paid dividends of $31 million during the period. Free cash flow was $29 million and is expected to be significantly stronger in the second half of the year due to the planned de-stockpiling at Mayskoye and the seasonal reduction of the timing gap between production and sales," Polymetal said.
Polymetal's unused credit lines currently amount to $1.115 billion.
