Polymetal International plc Proposes Final Dividend for the Year Ended December 31, 2014, Payable on 29 May 2015; Reports Preliminary Earnings and Production Results for the Year Ended December 31, 2014; Reiterates Production Guidance for the Year 2015 and 2016
Mar 30 15
Polymetal International Plc announced that final dividend of USD 0.13 per share representing 30% of the group's underlying net earnings for second half year ended 31 December 2014 is proposed by the Board, which, in accordance with the current dividend policy, has the discretion to declare regular dividend at the Net debt/Adjusted EBITDA ratio above 1.75. This will bring total dividend declared for the period to USD 0.41 per share, or USD 173 million. Ex-dividend date is 30 April 2015 and record date is 1 May 2015. Payment date is 29 May 2015.
The company reported preliminary earnings and production results for the year ended December 31, 2014. For the period, the company reported revenue for the year ended 2014 was USD 1,690 million, largely unchanged from 2013 despite average realized gold and silver prices decreasing 7% and 18% respectively year-on-year. The price decline was mostly offset by 7% increase in the volume of gold equivalent sold during the period. Adjusted EBITDA was USD 685 million, an increase of 15% year-on-year, driven predominantly by strong cost performance and production growth offsetting the decline in commodity prices. Adjusted EBITDA margin was 41% compared to 35% in 2013. Underlying net earnings for the year were USD 282 million against USD 179 million a year ago. As a result of non-cash foreign exchange losses, the Group recorded a net loss for the year of USD 210 million in 2014 against USD 198 million a year ago. Net debt of USD 1,249 million (including the liability for the special dividend payable), an increase of 20% versus 2013 levels as the Company raised an additional USD 318.5 million of debt for the acquisition of the Kyzyl gold project in Kazakhstan, while continuing to generate free cash flow and pay dividends. Free cash flow for the year was USD 306 million, an increase of more than two-fold compared to 2013. Return on equity was 21% against 9% a year ago. Basic loss per share was USD 0.53 against USD 0.51 a year ago. Net operating cash flow was USD 515 million against USD 462 million a year ago. Capital expenditure was USD 210 million against USD 319 million a year ago.
For the year, the company increased its gold equivalent production by 12% to 1.43 Moz and exceeded both its original production guidance of 1.3 Moz of GE by 10% and the updated production guidance of 1.365 Moz by 5%. This achievement was mostly driven by the full ramp-up of Mayskoye and strong operational delivery at Dukat and Omolon. Ore Reserves increased by 63% to 21.6 Moz of GE as a result of Kyzyl acquisition (+6.7 Moz) and updated Ore Reserves estimates at several of operating mines and exploration projects including, among others, Albazino underground, Svetloye, Kutyn, Veduga. Average Ore Reserves grade increased by 16% to 4.3 g/t GE.
For the year 2015 and 2016, the company reiterates its production guidance of 1.35 Moz of GE for 2015 and 2016. In 2015, Polymetal expects a lower TCC of USD 575 to USD 625 per GE oz and AISC of USD 750 to USD 800 per GE oz. Capital expenditure in 2015 is expected to total approximately USD 240 million (including exploration, capitalised stripping and spending on the Kyzyl project). This guidance is heavily dependent on the RUB/USD exchange rate, inflation in Russia, and oil price dynamics and is based on management's current estimates of these variables in 2015.
Polymetal International Mulls Sale Of Kutyn
Mar 26 15
Polymetal International Plc (LSE:POLY) is planning to sell Kutyn asset. The company is planning to sell project or form Joint venture. Chief Executive Officer, Vitaly Nesis stated, “We are completely happy with the results of exploration at Kutyn. The heap leaching project is attractive with its low capital intensiveness and possibility of generating cash flow in the medium term. It also has substantial exploration potential and potential for growth of reserves for underground development with the conversion of existing resources. However, at present we are completely focused on the implementation of our key project Kyzyl, and therefore we will consider the options of selling the Kutyn deposit or its development with partners.”
OJSC Polymetal Establishes Subsidiary in Armenia
Mar 12 15
OJSC Polymetal has registered a subsidiary in Armenia, Polymetal materials show. The firm PolyArm and its chief, Tigran Tagapetyan, were included on Polymetal's list of affiliates as of March 10 as entities belonging to the group. Polymetal bought the Kyzyl project in Kazakhstan with reserves of 6.7 million ounces of gold and a grading of 7.5 g/t in 2014 for a total consideration of $618.5 million, of which Polymetal paid $318.5 million cash and issued $300 million worth of new shares. There is also a deferred additional cash consideration of up to $500 million, contingent on certain conditions being met.