FTSE 250 metal mining company Polymetal has boosted its revenues by 10 per cent but it has also ramped up spending at the same time, the company has said in its preliminary results for the year ended 31 December 2016
Polymetal said capital expenditure has risen by 32 per cent to $271m (£220.54m) and revenues increased 10 per cent to $1.58bn.
Polymetal’s total gold equivalent production stood at of 1.3m oz, exceeding initial production guidance for the fifth year in a row.
The company said its adjusted earnings before income, tax, depreciation and amortisation (EBITDA) was $759m, up 15 per cent year-on-year.
Net debt of $1.33bn remained flat over the previous year’s $1.29bn and the firm declared a final dividend of 18 cents per share, which represents 30 per cent of the group's underlying net earnings for the second half of 2016.
Polymetal share price
Why it’s interesting
Analysts at Panmure Gordon said that “many investors have not considered” Polymetal which is “possibly one of the largest precious metal producers”.
“But, we believe Polymetal offers a sector leading growth profile, an efficient approach to geographically challenged, high-grade resources as well as being a market leader in pressure oxidation (POX) plant operations recovering gold from refractory ore,” they added.
What Marshalls said
Vitaly Nesis, Polymetal’s chief executive officer, said: “Delivering solid free cashflows and dividends reaffirms the strength of our strategy and allows us to advance our long-term project pipeline while sustaining cash returns to our shareholders.”
Polymetal carries a net debt of $1.33bn and ramped up capital expenditure by 32 per cent, but also reported an increase in adjusted EBITDA of 15 per cent year-on-year.