Sometimes you just can't win. Despite posting a sharp swing back to profitability in 2015, Polymetal International (POLY) saw its shares shed 6 per cent on the publication of full-year results. But beneath that headline were greater sources of concern for the Russian miner. Net debt increased by 4 per cent to $1.3bn (£909m), while the volume of gold sold dropped 8 per cent - the same amount by which average gold prices declined in the year.
In fact, the return to profit was largely the result of less damaging foreign-exchange movements than in 2014, when the company was forced to book a $559m loss. The sharp swing in the Russian rouble and Kazakhstani tenge also resulted in an $872m negative currency translation effect in the period, and a 44 per cent drop in Polymetal's total equity. However, the depreciation of the rouble against the US dollar was good for operating costs, and meant all-in sustaining cash costs fell 18 per cent to $733 per ounce of gold equivalent, well below management guidance.
According to Bloomberg data, consensus forecasts are for pre-tax profit of $440m and EPS of 82¢ in 2016, against $374m and 67¢ last year.
POLYMETAL INTERNATIONAL (POLY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 659p | MARKET VALUE: | £2.8bn | |
| TOUCH: | 659-660p | 12-MONTH HIGH: | 740p | LOW: 408p |
| DIVIDEND YIELD: | 5.4% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 115¢ | NET DEBT: | 267% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢)† |
|---|---|---|---|---|
| 2011 | 1.30 | 409 | 79.0 | 20.0 |
| 2012 | 1.90 | 651 | 110 | 81.0 |
| 2013 | 1.71 | -158 | -51.0 | 9.0 |
| 2014 | 1.69 | -138 | -53.0 | 41.0 |
| 2015 | 1.44 | 276 | 52.0 | 51.0 |
| % change | -15 | - | - | +24 |
Ex-div: 5 May Payment: 27 May £1=$1.43 †Includes special dividend of 50¢ in 2012, 20¢ in 2014, and 30¢ in 2015. | ||||
