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PJSC Polyus announces net profit reduction by 16% in 1H09 - EastRussia | Far East






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PJSC "Polyus" reported a reduction in the first half of net profit by 16%

According to the results of the first half of the year 2016, the gold mining company Polyus cut net profit by 16% - to 499 million dollars. Simultaneously, the company increased its adjusted EBITDA by 17% compared to the same period last year, to 691 million dollars

Polyus's IFRS revenue increased by 6% to 1,082 billion dollars (in real terms, sales increased by 5%, the selling price, taking into account the effect of the hedge, by 2%, to 1277 dollars per ounce), the company said.

The adjusted EBITDA margin increased from 58% to 64%.

The average cash costs (TCC) for the half year amounted to 377 dollars per ounce of gold, which implies a decrease of 14% compared to the first half of 2015 year, the total costs (all-in sustaining costs, AISC) - 555 dollars per ounce. decrease by 9%.

Net income declined by 16% to 499 million dollars - mainly due to one-time non-monetary factors, the company explains, as well as due to rising tax costs. Adjusted net income amounted to 405 million, which is 7% lower than in January-June 2015.

In the first half of 2016, Capex Polyus reached 186 million dollars, including 82 million dollars from the Natalka gold mine in Magadanskaya Oblast.

Total investments increased by 94%, in Natalku - by 116%.

The net debt of the gold miner increased several times, to 3,469 billion dollars as of the end of June 2016 (2,52 EBITDA) - as a result of the buyback of shares held in the first half of the year, Interfax notes.

PJSC Polyus is the largest Russian gold mining company. It develops ore and placer deposits in the Krasnoyarsk Territory, Irkutsk, Magadan and Amur regions, as well as in Yakutia. The main beneficiaries are the Suleyman Kerimov Foundation established by the Suleiman Kerimov Foundation, as well as Said Karimov.