Polymetal sees gold as prices jump

A massive rise in the price of gold, and a big jump in silver, helped Polymetal’s results sparkle in the first six months of the financial year.

The miner, which extracts the precious metals in Russian and Kazakhstan, said that the gold it sold during the first half fetched 25% more on average than the same time last year.

Silver prices meanwhile jumped by 10%.

As a result, revenue ticked confidently higher during six months, up 21% to more than 1.1 billion US dollars (£864 million).

“We are pleased to report a strong financial performance in the first half of the year amidst a challenging global backdrop,” said chief executive Vitaly Nesis.

“Favourable commodity prices and our tight cost control, as well as the impact of foreign exchange and improved grades, drove a significant increase in the Group’s earnings, cash flow and dividends.”

Both the Russian rouble and the Kazakh tenge have been low over recent months, meaning that costs, which are mainly paid in the two currencies, dropped 4% when converted into dollars.

The company said that there had been no “material” Covid-19 outbreaks at its operations, and most staff who got sick were away from the mine at the time.

However, at one site in Olcha a third of the 164 staff have tested positive and the mine will be shut down for up to two weeks during August.

“Importantly, we’ve been able to minimise the impact of the Covid-19 pandemic on our people, communities, and operations. Our key development projects continue to progress on schedule,” Mr Nesis said.