According to Reuters, Polyus (PLZL.MM) has achieved record profits in 2024 despite Western sanctions. The main reason is the sharp increase in gold prices.
Gold prices have risen more than 11% this year, after rising 27% last year - the best increase in more than a decade.
Polyus' pre- interest, tax, depreciation and deduction (EBITDA) profit increased by 49% to 5.7 billion USD, thanks to revenue reaching 7.3 billion USD. Net profit increased by 86% over the same period last year, to 3.2 billion USD.
"The main factors driving this result are increased gold sales and higher gold prices in the reporting period," Polyus said.
All major Russian gold mining companies, including Polyus, are on the list of Western sanctions. The US, UK and the European Union have banned gold imports from Russia since 2022.
The sanctions have limited access to key equipment for many Russian industrial companies, forcing them to find alternative sources of imports from countries such as China. Polyus said it is still restructuring its sales channel and looking for new suppliers.
In December, the company said the sanctions - which it found unreasonable - had nearly doubled the cost of developing the giant Sukhoi Log gold mine in Siberia to $6 billion.
Polyus confirmed its plan to pay dividends twice a year, with a target of 30% EBITDA. The Board of Directors will consider the fourth quarter dividend on March 10, estimated at about 575 rubles (6.41 USD) per share, according to T-Investments' calculations.
In 2024, Polyus exceeded its production plan, achieving a yield of 3 million ounces of gold, up 7%, while the amount of gold sold increased by 11% to 3.1 million ounces.
The company forecasts gold production in 2025 to fall to 2.5-2.6 million ounces. The investment cost is expected to increase to 2.2-2.5 billion USD, from 1.26 billion USD in 2024, due to accelerating the development progress of the Sukhoi Log project.
(1 USD = 89.7 rubles)
