Polymetal posts FY 2009 net income of $96 million

Leading Russian gold and silver producer, Polymetal, has posted a FY 2009 net income of $96 million under US GAAP.

The FY bottom line is a strong rebound from the FY 2008 net loss of $15.7 million, with FY 2009 adjusted EBITDA rising 49% year on year to $242 million, on the back of revenues also rising 12% to $560.7 million.

The company says the financial results were significantly impacted by four corporate acquisitions 2009, which boosted the asset base, but increased overheads, capital expenditures and working capital, and several non-recurring items on income statement. Polymetal also noted that increase gold sales volumes and gold prices helped to offset a decline in silver sales volumes.

Polymetal CEO, Vitaly Nesis, was upbeat about the results saying an efficient cost management policy coupled with sustainable expansion mostly provided for a good financial performance.

"2009 financial results drive home the message of Polymetal's excellent fundamental profitability."

“Cost containment and steady production expansion underpin our Company's unique combination of strong operating cash flows and ambitious growth perspectives."