Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Russia’s largest gold miner Polyus posted a 33% year-on-year jump in January-June adjusted net profit on Tuesday and a 37% EBITDA increase following higher prices and increased sales.
The company’s adjusted net profit stood at $1.05 billion, with earnings before interest, taxes, depreciation and amortization (EBITDA) at $1.7 billion and revenue at $2.39 billion, up 29% year on year. Non-adjusted profit was down 59% at $558 million.
Physical sales volume rose 24%, while gold output jumped 36% to 1.45 million ounces, with the difference going into stockpiles.
Polyus, which has been hit by Western sanctions over Russia’s invasion of Ukraine and completed a $6.4 billion share buyback last month, said it could consider cancelling a portion of the repurchased shares.
($1 = 95.8600 roubles)
(Editing by Barbara Lewis)
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