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Thursday, 2nd March 2006 (4629 views)

Russia's largest gold miner expects to see a rise in production this year as it gears up for its initial public offering (IPO).

Talking at a US presentation yesterday (March 2nd), Polyrus CEO Yevgeny Ivanov said he expects gold production to increase from 1.1 million to 1.2 million in 2006, Reuters reports.

This comes after Polyrus – which claims to have an 18 per cent share of Russia's gold output – revealed a mixed set of preliminary 2005 results.

Mr Ivanov said that revenues were up by an estimated 4.5 per cent on the previous year, rising from $442 to $462.

But he conceded that the company's bottom line was hit by rising fuel and equipment costs, with earnings before interest, tax, depreciation and amortisation tumbling 8.5 per cent to $182 million.

And Polyrus will soon be without the guiding hand of parent company Norilsk Nickel, with its IPO scheduled for some time in the spring.

Topping off a busy month for the Russian gold ace, Polyrus has also sold its entire 20 per cent stake in the world's fourth biggest gold miner, South African Gold Fields.

 

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