Polymetal keeps 2022 production outlook but nixes cost, capex guidance
Russian gold and silver miner Polymetal (OTCPK:AUCOY -7.1%) said it has suspended its 2022 cost and capital spending guidance in the wake of the invasion of Ukraine, but it reiterated its prior production forecast of 1.7M gold equiv. oz.
Polymetal shares have plunged to multiyear lows largely because of the conflict and the resulting sanctions on Russia, which CEO Vitaly Nesis said likely will "require a lot of management efforts to maintain company performance... [but] it is our current intention to operate as normally as possible."
Polymetal said FY 2021 net earnings fell to $904M from $1.07B a year earlier while revenues rose 1% to $2.9B, adding that it declared a final dividend of $0.52/share, bringing its full-year distribution to $0.97, compared with $1.29/share a year earlier.
"The difficulty in having a strong view of where the ruble will go is likely a big reason cost guidance was pulled despite the confidence to reiterate production targets," Jefferies analysts say.
Earlier this week, money manager BlackRock doubled its stake in Polymetal to slightly above 10%, after shares in the company plummeted more than 70% in three days.
Comex gold futures spiked to their highest settlement in more than a year on Tuesday, as Russia's assault drove investor demand for safe-havens.