WOOD Flash – Polyus: 3Q19 trading update - production volumes, gold sales and net debt broadly in line
Polyus has released its 3Q19 trading update. Total gold production was up 10% qoq, due to seasonal heap leach and alluvial production, and +9% yoy to 753koz, due to growth in output from the Natalka mine, which continues to ramp up to full capacity. These results were 1% below our assumptions, but with a higher proportion of gold sold in concentrate, so payable gold output was 2% behind our forecast. Sales volumes rose 6% qoq to 729koz (4% below our forecast and 3% below production), but this is likely to reverse in the next quarter, in our view. Gold revenues of USD 1,061m were up 20% qoq/29% yoy, more than the output volume, due to a 13% qoq increase in gold prices to USD 1,482/oz. Net debt at the end of 3Q19 was USD 3.32bn, down 9% qoq, in line with our forecast. Overall, we see the results as neutral for the share price, as they are not materially different from our expectations. Production will need to stay flat qoq to meet guidance of 2.8moz in 2019E, however, despite seasonal heap leach and alluvial production being lower.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.