Polymetal ups sales guidance on high output

PRECIOUS metal producer Polymetal yesterday posted record gold output of 317,000 ounces, up 48 per cent year on year, revising up its full-year production guidance.

For the nine months to 30 September, gold production was up 46 per cent year on year. On a quarterly basis, production increased seven per cent.

The Russian producer cited strong production growth at its Omolon mine, progress at Albazino-Amursk and an improved gold grade at Khakanja for the rise in production.

Annual production for 2012 is now expected to come in at 1.05m ounces of gold equivalent, up from 1m.

However, its 2013 production estimate has been revised down by 50,000 ounces, largely due to the delay in the expected commissioning of the Mayskoye gold concentrator in Russia’s Far East, previously expected to be operational this year.

On the back of strong results, the board has raised the minimum dividend payout ratio to 30 per cent of net earnings. The board added that it would introduce interim dividends, and proposed that a special dividend be considered at the end of each financial year.

Chief executive Vitaly Nesis said yesterday that strong performance at both its older and newer operations have helped to beat original sales guidance.

Mining analyst Cailey Barker at Numis Securities yesterday hailed the “strong result”, adding that Polymetal’s business “continues to get better and better.”

ADVISERS LIBERUM CAPITAL

MICHAEL RAWLINSON
LIBERUM CAPITAL

Michael Rawlinson, director of the mining, metals and resources team at Liberum Capital, is the lead adviser on the placing, working alongside colleagues Clayton Bush and Christopher Kololian. Rawlinson has 20 years investment banking experience in the mining sector, both in research and corporate finance. Rawlinson has previously worked in the mining corporate finance team at Flemings and has worked on both mining analysis and corporate finance at Cazenove, before it merged with JP Morgan. In terms of mining deals, he has held key roles in the initial public offerings of major miners in London such as BHP Billiton, Xstrata, Vedanta, Anglo American and Kazakhmys. Last April, the Liberum Capital dealmaker was an adviser on the Glencore IPO. Rawlinson has also helped the listing and subsequent development of numerous small- and mid-cap miners to the London market, including Hochschild Mining, Gem Diamonds, Talvivaara Mining, Lonmin, Peter Hambro Mining (now Petropavlovsk), Highland Gold, Vallar, Ncondezi, Hummingbird Resources, Zanaga Iron Ore and London Mining. Liberum more widely has also been involved with the IPO of Nat Rothschild’s cash shell, Vallar, before it became Bumi in April 2011.