Polymetal boosts sales to Russian Gokhran, Kazzinc in 2011
MOSCOW. April 25 (Interfax) - Polymetal International plc, the controlling shareholder in Russian gold and sliver miner OJSC Polymetal , boosted sales to the Russian State Precious Metals and Gemstones Repository (Gokhran) 15.7-fold last year to $122 million, the company said in an earnings report.
Sales to Kazakhstan's Kazzinc soared 28-fold to $136.7 million.
Polymetal managers said at a conference call on April 25 that the Gokhran bought silver at market prices last year.
"Sales to the state were more profitable than to any commercial bank," said Pavel Danilin, deputy CEO, strategic development.
Polymetal has not sold silver to the state so far this year because the Gokhran has not yet received money from the budget to buy it, he said.
Sales to VTB , the biggest outside buyer, fell to $241.8 million in 2011, from $301 million in 2010.
Sales to third parties jumped 75% last year to $1.065 billion, the report says. However sales to the affiliated Nomos-Bank fell to $258.8 million last year, from $315 million in 2010.
Sales also shifted towards silver, which accounted for 44% of overall sales last year, up from 38% in 2010, which gold falling to 52.5% from 59%.
Polymetal sales, $ mln
| 2011 | 2010 | % | |
| Sales to third parties | 1 064,6 | 608,592 | 75% |
| - VTB | 241,815 | 301,015 | -20% |
| - Kazzinc | 136,661 | 4,901 | +27.9-fold |
| - Gokhran | 122,048 | 7,752 | +15.7-fold |
| - Metalor S.A. | 106,87 | 80,942 | 32% |
| - Sberbank | 106,43 | 76,316 | 39% |
| - HSBC | 100,314 | 9,703 | +10-fold |
| - Others | 250,455 | 127,963 | 96% |
| Affiliated sales | |||
| Nomos-Bank | 258,794 | 315,405 | -18% |
| Geography of sales | |||
| Russia | 862,763 | 780,284 | 11% |
| Europe | 207,184 | 95,676 | +2.2-fold |
| Kazakhstan | 136,66 | 4,901 | +27.9-fold |
| China | 119,823 | 44,515 | +2.7-fold |
| Revenue by metal | |||
| Gold | 697,135 | 542,118 | 29% |
| Silver | 580,182 | 352,721 | 64% |
| Copper | 46,07 | 29,158 | 58% |
| Total | 1323,387 | 923,997 | 43% |
Under forward sales commitments this year, Polymetal's subsidiary JSC Okhotskaya GGC is required to sell to sell 45,000 ounces of gold and 3,350,000 ounces of silver during 2012 to Nomos-Bank at a price determined by London Bullion Market Association (LBMA).
Under the sale agreement with Rosbank, the Company's subsidiary, CJSC Zoloto Severnogo Urala is required to sell 39,000 ounces of gold during 2012; 48,000 ounces of gold during 2013; 19,000 ounces of gold during 2014 at a price determined by LBMA.
Under the sale agreement with Sberbank, the Company's subsidiary, CJSC Zoloto Severnogo Urala is required to sell 64,000 ounces of gold during 2012 at a price determined by LBMA.
Under the sale agreements with Gazprombank, the Company's subsidiaries, JSC Omolon Gold Mining Company and JSC Okhotskaya GGC are required to sell 36,000 ounces of gold till 28 February 2012 at a price determined by LBMA.
Under the sale agreement with Trafigura Beheer B.V., the Company's subsidiary, JSC Varvarinskoe is required to sell 17,000 ounces of gold during 2012 at a price determined by LBMA and 4,488,000 tonnes of copper concentrate during 2012 at a price determined by the London Metal Exchange (LME) and adjusted for further processing costs.
Under the sale agreement with Glencore, the Company's subsidiary, JSC Varvarinskoe is required to sell 9,000 ounces of gold during 2012 at a price determined by LBMA and 2,448,000 tonnes of copper concentrate during 2012 at a price determined by LME and adjusted for further processing costs.