Net profit ofPolyus Gold- the largest gold producer in Russia – according to the international standards of financial reporting for 2015 amounted $1,119 million against the loss of $182 million for 2014, as the company reported. Last time the company performed the comparable net profit level far in 2006.
Adjusted net profit without charges grew by 47% to $901 million. Net margin amounted by 41% against 27% a year earlier.
Revenue declined by 2% to $2,189 billion, EBITDA - grew by 25% to $1,268 billion. This is the record-breaking level for the company. EffectivenessaccordingtoEBITDAamounted 58% against 45% for 2014. "Vedomosti" notes this result to be the best among 10 largest gold producers in the world. To compare: the efficiency of the largest world producer of gold, Canadian company Barrick Gold (produced 6.1 million ounces of gold), in 2015 г. – 35,3%, and the nearest follower, South African Gold Fields, – 40,7%.
As Director General of the company PavelGrachov says, the record-breaking results were achieved due to production increase (+4%) and reducing costs per ounce (-28%). Total production optimization program made about $100 million additional profit. In addition, rise of metal selling prices played its role due to the revenue stabilization program.
In 2014 Polyus Gold acquired put- and call- options with Russian and international banks, and positive effect estimated $116 million in 2015. Thus, the company will have 48% of its production insured in 2016 against 24% in 2015 as Polyus Gold presentation says.
Devaluation and raw product cost decline also made significant impact as the asset manager of General Invest Denis Gorev is noticing. Hence, fuel expenditures in cost structure of Polyus Gold reduced from 13% in 2014 to 10% in 2015.
Polyus Gold reduced investments due to the Natalkinsk golden ore deposits project revision by 37% to $487 million in 2015, capital investments dropped by 49% to $268 million. It increased company’s free cash flow by 14% to $2 billion and helped to save $2,04 billion by 2015. Earlier Director General of the company PavelGrachov informed TASS that considerable growth of investments are expected in 2016 due to construction resumption on the Natalkinsk deposit, which is projected to be put under operation in 2017.\