Polymetal International plc: Half-yearly report for the six months ended 30 June 2019 (863257)
27 Agosto 2019 - 12:56AM
UK Regulatory
Polymetal International plc (POLY)
Polymetal International plc: Half-yearly report for the six months ended 30
June 2019
27-Aug-2019 / 08:56 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Release time IMMEDIATE LSE, MOEX, AIX: POLY / ADR: AUCOY
Date 27 August 2019
Polymetal International plc
Half-yearly report for the six months ended 30 June 2019
"Our strong earnings during the period reflect solid operational delivery,
and most notably excellent results from Kyzyl", said Vitaly Nesis, Group
CEO, commenting on the results. "Traditionally, we expect seasonally lower
costs, higher production and materially stronger cash flow generation in the
second half of the year, allowing us to meet our full year cost and
production guidance".
FINANCIAL HIGHLIGHTS
? Revenue in 1H 2019 increased by 20% to US$ 946 million compared to 1H
2018 ("year-on-year"), primarily driven by gold equivalent (GE) production
growth of 22%. Gold sales were 604 Koz, up 36% year-on-year, while silver
sales were down 15% to 10.3 Moz, in line with production volume dynamics.
Average realised prices largely tracked market dynamics: gold prices
achieved were broadly flat year-on-year, while silver prices were down 7%.
? Group Total cash costs ("TCC")1 were US$ 667/GE oz for 1H 2019, down 3%
year-on-year, and 3% above the Company's full year guidance of US$
600-650/GE oz owing to the seasonality of sales. All-in sustaining cash
costs ("AISC")1 amounted to US$ 904/GE oz, increasing by 1% year-on-year
due to one-off investments at Varvara (locomotive and mining fleet) and
Dukat (scheduled tailings storage facility upgrade). Both cost metrics are
expected to decline in the second half of the year on the back of
seasonally higher production, notably at Svetloye and Mayskoye, and due to
a closer alignment of sales to production at Dukat and Kyzyl.
? Adjusted EBITDA[1] was US$ 403 million, an increase of 34% year-on-year,
mostly driven by higher production volumes. The Adjusted EBITDA margin
increased by 5 p.p. to 43% (1H 2018: 38%), reflecting a successful launch
and ramp-up of Kyzyl delivering at full capacity during the period.
? Net earnings[2] were US$ 153 million versus US$ 175 million in 1H 2018,
mostly impacted by the foreign exchange loss on USD denominated
intercompany loans between entities with different functional currencies.
Underlying net earnings1 increased by 21% to US$ 188 million (1H 2018: US$
155 million) on the back of higher operating profit.
? A final dividend for 2018 of US$ 0.31 per share (total of US$ 146
million) was paid in May 2019. An interim dividend of US$ 0.20 per share
(1H 2018: US$ 0.17 per share) representing 50% of the Group's underlying
net earnings for 1H 2019 has been approved by the Board in accordance with
the dividend policy, while complying with the hard ceiling of 2.5x Net
debt/Adjusted EBITDA .
? Net debt1 increased to US$ 1,698 million during the period (31 December
2018: US$ 1,520 million), representing 1.92x of last twelve months
Adjusted EBITDA, driven by a seasonal working capital increase and payment
of FY 2018 final dividend. Seasonally higher production and a working
capital drawdown are expected to drive stronger free cash flow generation
in 2H 2019.
? Polymetal remains on track to meet its 2019 production guidance of 1.55
Moz of gold equivalent. TCC and AISC are expected to be within the
guidance range of US$ 600-650/GE oz and US$ 800-850/GE oz, respectively.
This guidance remains contingent on the RUB/USD and KZT/USD exchange rates
that have a significant effect on the Group's local currency denominated
operating costs.
Financial highlights[3][4] 1H 2019 1H 2018 Change, %
Revenue, US$m 946 789 +20%
Total cash cost, US$/GE oz 667 689[5] -3%
All-in sustaining cash cost, US$/GE 904 898 +1%
oz
Adjusted EBITDA, US$m 403 300 +34%
Average realised gold price, US$/ oz 1,332 1,313 +1%
Average realised silver price, US$/ 15.2 16.4 -7%
oz
Net earnings, US$m 153 175 -13%
Underlying net earnings, US$m 188 155 +21%
Return on Assets, % 14% 13% +1%
Return on Equity (underlying),% 13% 12% +1%
Basic EPS, US$/share 0.33 0.40 -18%
Underlying EPS, US$/share 0.40 0.35 +14%
Dividend declared during the period, 0.31 0.30 +3%
US$/share[6]
Dividend proposed for the period, 0.20 0.17 +18%
US$/share
Net debt, US$m 1,698 1,520[7] +12%
Net debt/Adjusted EBITDA[8] 1.92 1.95 -1%
Net operating cash flow, US$m 127 93 +37%
Capital expenditure, US$m 189 169 +12%
Free cash flow, US$m (63) (64) NM[9]
Free cash flow post-M&A, US$m (23) (91) NM
=---------------------------------------------------------------------------
[1] The financial performance reported by the Group contains certain
Alternative Performance Measures (APMs) disclosed to complement measures
that are defined or specified under International Financial Reporting
Standards (IFRS). For more information on the APMs used by the Group,
including justification for their use, please refer to the "Alternative
performance measures" section below.
[2] Profit for the financial period.
[3] Totals may not correspond to the sum of the separate figures due to
rounding. % changes can be different from zero even when absolute amounts
are unchanged because of rounding. Likewise, % changes can be equal to zero
when absolute amounts differ due to the same reason. This note applies to
all tables in this release.
[4] For more information on the APMs used by the Group refer to the
"Alternative performance measures" section below.
[5] Restated on Dukat's TCC including the effect of concentrate treatment
charges. Previously reported TCC for 1H 2018 were US$ 683/GE oz.
[6] 1H 2019: Final dividend for FY 2018 paid in May 2019. 1H 2018: Final
dividend for FY 2017 paid in May 2018.
[7] As at 31 December 2018.
[8] On a last twelve months basis. Adjusted EBITDA for 2H 2018 was US$ 475
million.
[9] NM - Not meaningful.
*Please find the full PDF version of the announcement at the link at the
bottom of the page.*
Conference call and webcast
Polymetal will hold a conference call and webcast on Tuesday, 27 August 2019
at 12:00 London time (14:00 Moscow time).
To participate in the call, please dial:
8 800 500 98 63 access code 23612986# (free from Russia), or
44 203 009 24 83 (free from the UK), or
1 646 502 51 26 (free from the US), or
follow the link: https://webcasts.eqs.com/polymetal20190827 [1]
Please be prepared to introduce yourself to the moderator or register.
Webcast replay will be available on Polymetal's website
(www.polymetalinternational.com [2]) and at
https://webcasts.eqs.com/polymetal20190827 [1]. A recording of the call will
be available immediately after the call at +44 20 3364 5147 (from within the
UK), +1 646 722 4969 (from within the USA) and +7 495 249 16 71 (from within
Russia), access code 418870681#, from 14:30 Moscow time Tuesday, 27 August,
till 14:30 Moscow time Tuesday, 3 September, 2019.
Enquiries
*Media* *Investor Relations*
FTI +44 20 3727 Polymetal ir@polymetalinternational.com
Consulting 1000
Eugenia +44 20 7016 9505 (UK)
Leonid Fink Onuschenko
Viktor Timofey
Pomichal Kulakov
+7 812 334 3666 (Russia)
Kirill
Kuznetsov
*Joint Corporate Brokers*
Morgan +44 20 7425 RBC Europe +44 20 7653 4000
Stanley 8000 Limited
Andrew Foster Marcus
Jackson
Richard Brown
Jamil Miah
Panmure
Gordon
+44 20 7886
2500
Charles
Lesser
James Stearns
FORWARD-LOOKING STATEMENTS
THIS RELEASE MAY INCLUDE STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE,
"FORWARD-LOOKING STATEMENTS". THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS
AT THE DATE OF THIS RELEASE. THESE FORWARD-LOOKING STATEMENTS CAN BE
IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, INCLUDING THE WORDS
"TARGETS", "BELIEVES", "EXPECTS", "AIMS", "INTS", "WILL", "MAY",
"ANTICIPATES", "WOULD", "COULD" OR "SHOULD" OR SIMILAR EXPRESSIONS OR, IN
EACH CASE THEIR NEGATIVE OR OTHER VARIATIONS OR BY DISCUSSION OF STRATEGIES,
PLANS, OBJECTIVES, GOALS, FUTURE EVENTS OR INTENTIONS. THESE FORWARD-LOOKING
STATEMENTS ALL INCLUDE MATTERS THAT ARE NOT HISTORICAL FACTS. BY THEIR
NATURE, SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER IMPORTANT FACTORS BEYOND THE COMPANY'S CONTROL THAT
COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY
TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH
FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING THE
COMPANY'S PRESENT AND FUTURE BUSINESS STRATEGIES AND THE ENVIRONMENT IN
WHICH THE COMPANY WILL OPERATE IN THE FUTURE. FORWARD-LOOKING STATEMENTS ARE
NOT GUARANTEES OF FUTURE PERFORMANCE. THERE ARE MANY FACTORS THAT COULD
CAUSE THE COMPANY'S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER
MATERIALLY FROM THOSE EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS. THE
COMPANY EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING TO DISSEMINATE ANY
UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO
REFLECT ANY CHANGE IN THE COMPANY'S EXPECTATIONS WITH REGARD THERETO OR ANY
CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS
ARE BASED.
Attachment
Document title: Full version of the 1H 2019 report
Document: http://n.eqs.com/c/fncls.ssp?u=XUJDFHFFVB [3]
ISIN: JE00B6T5S470
Category Code: IR
TIDM: POLY
Sequence No.: 18063
EQS News ID: 863257
End of Announcement EQS News Service
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2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=3b19145caf20682f6ca00262a735d794&application_id=863257&site_id=vwd&application_name=news
3: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=3800882b70d43819488c52e0a456fceb&application_id=863257&site_id=vwd&application_name=news
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