Russia and Kazakhtstan focused precious metals miner, Polymetal International (POLY), ramped-up production at several of its operational assets during 2012 - that allowed it to boost total gold equivalent production by 31 per cent to 1.063m ounces and to beat its original guidance of 1m ounces by 6 per cent. But recent volatility in the gold price will be a big factor for precious metals miners this year.
Bringing the Dukat and Varvara mines up to full production was a key achievement for Polymetal and the group has had some success at keeping a lid on costs, too. All-in cash costs, a measure which is intended to include all ongoing operating and capital expenditure, fell 15 per cent in the year to $1,047 (£684) per gold equivalent ounce - largely because of lower capital expenditure at its mines. Although, keeping costs down may prove tough going forward against a background of rising Russian inflation. Moreover, the company received an average realised gold price of $1,631 per ounce - a 5 per cent increase on 2011. Management expects 1.2m ounces of production in 2013, with the group's Mayskoye mine set to come on-stream this year.
Broker Canaccord Genuity forecasts pre-tax profit for 2013 of $919m, giving EPS of 157¢ (2012: 103¢).
POLYMETAL INTERNATIONAL (POLY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 875p | MARKET VALUE: | £3.36bn | |
| TOUCH: | 874-875p | 12-MONTH HIGH: | 1,231p | LOW: 726p |
| DIVIDEND YIELD: | 2.3%† | PE RATIO: | 13 | |
| NET ASSET VALUE: | 553¢ | NET DEBT: | 49% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 0.93 | 306 | 67.0 | nil |
| 2011 | 1.33 | 409 | 79.0 | 20.0 |
| 2012^ | 1.85 | 617 | 103 | 31.0† |
| % change | +39 | +51 | +30 | +55 |
Ex-div: 15 May Payment: 19 Jun †Excludes 50¢ special dividend £1=$1.53 | ||||
