Polymetal International PLC (LON:POLY) boosted gold equivalent production by 5% during the first quarter of 2020, as strong performance at the Kyzyl, Svetloye and Varvara mines in Russia and Kazakhstan more than offset planned grade declines at Omolon and Voro.
Quarterly revenue increased by 9% year-on-year to US$494mln on the back of higher gold prices.
Sales volumes decreased by 7% y-o-y due to the coronavirus-related slowdown of concentrate shipments to China, which have fully normalised since early March.
Net debt grew to US$1.66bn primarily due to seasonal advance purchases of diesel fuel and other consumables and low sales volumes.
Free cash flow generation in 2020, as seen historically, will be weighted towards the second half of the year driven by seasonal working capital drawdowns.
The company confirms its 2020 production guidance of 1.6mln ounces of gold equivalent.
Guidance on total cash costs was set at between US$650 and US$700 per gold equivalent ounce and between USS$850 and US$900 for all-in sustaining costs.
Polymetal remains committed to its dividend policy and does not intend to change the previously announced final dividend recommendation of US$0.42p share, due to be paid on 29 May 2020