Polyus net profit up 63% on higher gold prices

Russian largest gold producer Polyus said on Monday that its second-quarter net profit rose 63% year-on-year to $684 million due to a 31% increase in gold prices.

Its second-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were at $860 million, up 42% year-on-year, while revenue rose 29% to $1.2 billion.

Polyus remains on track to produce 2.8 million troy ounces of gold in 2020 with capital expenditures expected at between $700 million and $750 million.

Its board of directors recommended a dividend payment for the first half of 2020 of $435 million, or 30% of Polyus’ EBITDA for the period. The dividend payment, with the record date due October 20, is expected at 240.18 roubles ($3.19) a share.

Polyus was able to maintain uninterrupted operations at all assets during the second quarter, despite the covid-19 outbreak at its Olimpiada mine in Russia which was contained.

Polyus remained free-cash-flow positive with $450 million of levered free cash flow, bringing the first-half figure to $709 million.

(By Polina Devitt; Editing by David Evans)