MOSCOW – Russian gold and silver producer Polymetal aims to ramp up sales to Asia, it said on Thursday as it reported second-quarter revenue down 36% at $433 million owing to sanctions-hit sales and rising stockpiles.
London-listed Polymetal is considering disposing of its Russian assets to focus on operations in Kazakhstan in the face of Western sanctions against Russia, it said this week.
“International sanctions against Russia continue to have a material impact on sales, procurement and logistics,” Chief Executive Vitaly Nesis said in a statement.
“The management is fully focused on maintaining operating and financial stability of the company.”
The company’s Russian mines accumulated 130,000 troy ounces of gold equivalent in gold and silver bullion inventory in the quarter, Polymetal said, adding that the gap between sales and production is likely to be closed in the third quarter as it ramps up sales to Asia.
Its gold equivalent production fell by 9% year on year to 326,000 ounces for April-June, Polymetal said, adding that it was on track to meet its full-year production guidance.
The miner has yet to provide detail on the potential restructuring to focus on Kazakhstan.
It is due to hold a conference call to discuss production results with analysts at 1000 GMT on Thursday.
(Reporting by Reuters; Editing by David Goodman)
