UNDERGROUND

Polyus' earnings rise despite higher costs

Polyus noted "ongoing inflation" in the price of consumables

William Clarke
 Polyus' Natalka mine in Russia

Polyus' Natalka mine in Russia

Adjusted net profit was up by 14% quarter-on-quarter, at US$663 million, with revenue up 12% qoq at US$1.4 billion.

Polyus reported total gold sales of 776,000oz, up by 14% qoq. "This reflects seasonally higher production volumes at alluvials as well as increased refined gold production volumes across almost all hard-rock deposits," Polyus said.

Polyus in October reported better-than-expected production at its mines.

The rising sales outweighed an increase in costs. Polyus' total cash cost per ounce mined rose by 9% qoq to $427/oz in the September quarter. The all-in-sustaining costs of operations rose by 4% to US$697/ozoz.

Polyus ascribed the rise primarily to a seasonal shift in output to the higher cost alluvial operations. 

But costs are well up over the year as a whole, at US$403/oz in the first nine months of 2021, an increase of 10% year on year. Polyus noted "ongoing inflation" in the price of consumables, including diesel, lifting costs.

Polyus shares in Moscow were up 2.3% at 15,239 roubles at 9.51 London time.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions