CEO: Polyus keeps gold output forecast for 2018 unchanged

VLADIVOSTOK, Sep 12 (PRIME) -- Russian gold producer Polyus has retained its gold output forecast for 2018 unchanged, CEO Pavel Grachyov told PRIME on the sidelines of the Eastern Economic Forum on Wednesday.

“Yes, I can confirm our forecast. We are approaching the upper limit of a 2,375–2,425 million ounces range in a comfortable manner… The plan for 2019 is 2.8 million ounces,” he said.

The Natalka gold mine continues to raise its capacity ahead of schedule to reach an output of 420,000 ounces of gold in 2019, he added.

The company also confirmed its capital investment forecast at U.S. $850 million in 2018 and around $650 million in 2019.

The net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio is to grow to below 2x at the end of 2018 from the current 1.8x.

Polyus still plans to raise its free float from the current 16.6% of the issued capital and is waiting for favorable conditions.

The company appreciates the latest government’s initiatives to stimulate companies’ investment in priority projects, he added.

“We can only discuss our investment program and core activity within the framework of (President Vladimir Putin’s) aide Belousov’s initiatives. They do not change in response to current discussions. The most obvious of possible support measures is tax benefits for capital investment,” he said.

Belousov earlier suggested withdrawing up to 500 billion rubles a year of windfall income from some metals, petrochemical, and fertilizer producers. But on August 24, he backtracked and said that he and the companies agreed that the government will stimulate investment of the companies in priority state projects.

(69.9744 rubles – U.S. $1)

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