FTSE 100 precious metals miner Polymetal yesterday announced that it is reviewing its spending after the recent fall in gold and silver prices.
The Russian company posted increased gold production of 16 per cent in the first quarter of 2013, and boosted silver output of 14 per cent year-on-year.
However, while total sales reached $341m (£221m), the average gold price during the quarter was down four per cent year-on-year to $1629 an ounce. The average silver price was down seven per cent to $29 an ounce.
As well as launching a spending review, the company said that three projects were likely to be delayed or re-engineered.
“We are on track to achieve our annual production guidance”, said chief executive Vitaly Nesis.
“Polymetal is well positioned to withstand the current adverse metal price movements given our strategic preference for higher grade assets and intense management focus on cost control and efficient capital allocation.”
The company also published its annual report today for 2012, reporting profits of $401m compared to $209m the previous year and 31 per cent increased gold production from 2011.
Sales revenue rose from $1.33bn to $1.85bn.