Gold production boosts Russian miner Polymetal

POLYMETAL, the Russian precious metals miner, has posted a 40 per cent rise in annual revenues thanks to higher gold output even as the price of silver fell.

The FTSE 100 constituent said it had ramped up production during 2012, thanks to stable performances at its mature mines. This meant Polymetal mined 1.06m ounces of gold equivalent – a measure of the value of gold, silver and copper combined– a 31 per cent increase on 2011.

Revenues hit $1.85bn (£1.2bn), boosted by a five per cent rise in the average selling price of an ounce of gold over the year, although the price Polymetal sold silver at fell 12 per cent.

The company’s pre-tax profits rose 51 per cent to $617m, buoyed by the positive impact of foreign exchange rates.

“We have demonstrated strong financial performance for the year driven by excellent operational performance and tight cost and capital discipline,” chief executive Vitaly Nesis said.