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.
MOSCOW, Nov 9 (Reuters) – Russia’s largest gold producer Polyus said on Thursday its third-quarter net profit decreased 5 percent year-on-year to $371 million due to a gain on derivatives and investments in the prior period, as well as finance costs.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 7 percent to $475 million while total revenue grew 5 percent to $744 million.
Polyus, controlled by the family of Russian tycoon Suleiman Kerimov, reiterated its production guidance for 2017 of 2.075–2.125 million ounces.
The company’s net debt increased to $3.15 billion as of the end of the third quarter compared to $3.08 billion three months earlier.
Polyus shares were up 1.5 percent in early trade in Moscow.
(Reporting by Polina Devitt and Polina Nikolskaya Editing by Maria Kiselyova).
