Polymetal posts 1H 2010 net profit of $94.5 million

29 Sep, 2010 13:07 / Updated 14 years ago

Russian precious metals producer, Polymetal, has posted a 1H 2010 net income of $94.5 million under US GAAP.

The bottom line was up from the 1H 2009 net result of $19 million, with EBITDA increasing 135% year on year to $161.9 million, on the back of a 92% year on year rise in revenues to $421.7 million.

The company noted that revenue growth was underpinned by gold sales, which saw a 106% year on year increase, with overall sales volumes up 64% and the gold price rose 25% year on year. This was buttressed by a 66% increase in silver sales as the silver price rose from $13 per ounce in 2009 to an average of $17.50 per ounce during 1H this year.

Polymetal CEO, Vitaly Nesis said the results were excellent and added the company was “Reaping the rewards for disciplined expansion and relentless cost control” in the face of domestic inflation and an appreciating Russian rouble which combined to exert cost pressures which Polymetal estimated at 20%.