Polymetal earnings climb on back of metal price recovery

Gold and silver miner Polymetal reported a 79 per cent rise in earnings last year after a rally in precious metal prices and forecasts increased output in 2017 and 2018.

The FTSE-listed Russia and Kazakhstan-focused miner reported annual profit of $395m, helped by a 10 per cent rise in revenue to $1.58bn and a weakening of the ruble, which lowered costs.

Gold and silver prices rose 8 and 11 per cent respectively last year, as global production slipped. Polymetal production rose 2 per cent to 1.3m oz of gold equivalent. The miner forecast production would rise to 1.40m oz in 2017 and 1.55m oz in 2018.

Vitaly Nesis, group chief executive, described the results as “robust earnings… on the back of a strong operating performance.”

“Delivering solid free cash flows and dividends reaffirms the strength of our strategy and allows us to advance our long-term project pipeline while sustaining cash returns to our shareholders,” he said in a statement.

The miner, one of only a few Russian companies to have remained on the London exchange after a slew of delistings since the Ukraine crisis, said it would propose a final 2016 dividend of 18 cents per share.