Polyus Gold International Limited, the largest gold producer in Russia, in its consolidated audited financial results for the year 2015, said gold sales increased 5% y-o-y to 1,768 koz, driven by progress at all hard-rock mines.
Revenue went down 2% y-o-y to $2,189 million owing to the 8% decrease in global gold prices offset by higher sales volumes and the positive effect of the Strategic Price Protection Programme.
Adjusted EBITDA, defined by the Group as profit before finance costs, income tax, income/(losses) from investments (including derivatives), depreciation, amortisation and interest paid, and adjusted for one-off items, went up 25% y-o-y to $1,268 million as a result of reduction in costs and higher sales volumes.
Adjusted EBITDA margin increased 13 ppts y-o-y to 58%, while profit for the period totalled $1,119 million, compared to a net loss of $182 million in FY 2014.
Adjusted net profit went up 47% y-o-y to $901 million, while cash and cash equivalents and bank deposits at the end of FY 2015 totalled $2,039 million, a 37% increase over the end of FY 2014, reflecting strong cash flow generation.
Net cash inflow from operations amounted to $1,076 million, up 24% y-o-y as a result of increased operating profit and the continued benefits of stringent working capital control.
The miner recorded Capital Expenditure (Capex) of $268 million, a 49% y-o-y decrease, resulted from reduced spending on Natalka, successful capital control measures and a weaker rouble.
Net debt amounted to $146 million, down 55% y-o-y, thanks to robust-free cash flow generation.
Net debt/adjusted EBITDA fell 63% y-o-y to 0.12x at the end of the period owing to both higher EBITDA and lower net debt.
It recorded sizable y-o-y cost reductions, with Total cash cost (TCC) down 28% to $424/oz and All-in sustaining cash cost (AISC) down 26% to $610/oz, were due to the deployment of efficiency programmes and the rouble depreciation.
• Total gold output for the year of 1,763 thousand ounces, up 4% y-o-y, exceeding the upper end of the guidance range of 1,630-1,710 thousand ounces for the second consecutive year and marking the eighth year of organic gold production growth.
• The average recovery for the Group totalled 84.5%, 2.3 ppts up y-o-y with recoveries at Olimpiada increased by 3.8 ppts to 79.6% marking the fifth consecutive year of improvement.
• Further progress in debottlenecking and increasing processing capacities at Olimpiada and Blagodatnoye where mills operated 19% and 25% above the nominal capacities, respectively.