Wednesday 3 March 2021 8:06 am

Precious metal price surge boosts Russian miner Polymetal

Russian miner Polymetal today said that earnings hit a record high in 2020 as surging precious metal prices boosted the firm’s profit.

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The FTSE 100 firm said that earnings reached $1.1bn last year, up from $483m in 2019. In addition, revenue jumped 28 per cent to $2.9bn.

A combination of higher production volumes, higher commodity prices, and lower costs combined to send earnings soaring, Polymetal said.

Gold and silver prices climbed 27 per cent last year as investors sought safe haven assets to protect their wealth amid the pandemic.

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The firm is one of Russia’s largest producers of the precious metals, with mines throughout the country, as well as in Kazakhstan and Armenia.

Chief executive Alexander Nesis said: “We are pleased to report┬árecord net earnings for┬áthe year amidst a challenging global backdrop.

“A strong operating performance, a favourable commodity price environment and stable cost performance underpinned a significant increase in the Group’s cash flow and dividends whilst achieving a material reduction in leverage.”

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Polymetal said it was recommending a final dividend of $0.89 per share, or $419m, taking the total dividend to the year to $1.29. That’s a 59 per cent increase on 2019’s payout.