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Polyus, Russia’s largest gold producer, posted its highest ever production figures, profit margins and free cash flow generation in 2016, as revenues rose an annual 12 per cent to $2.46bn on increased production and higher gold prices.

Polyus, which is listed in Moscow and is mulling a return to London for a secondary listing, surpassed its own production guidance last year with output of 1.97m ounces of gold, and forecast 2017 output of 2.075-2.125m ounces.

The world’s fourth-largest gold miner by reserves and ninth-largest by output said on Tuesday that its adjusted EBITDA for 2016 was $1.536bn, on a record margin of 62 per cent.

At the same time, net debt at the end of the year stood at $3.24bn, up from $364m a year previously. The company raised $1.3bn through two Eurobond issues for refinancing activities.

“2017 is to become another year of growth,” said chief executive Pavel Grachev. “A number of brownfield projects as well as [major new mine] Natalka are to be commissioned, which will deliver a further production increase.”

The company said its total cash cost across its six mines in Russia fell 8 per cent year-on-year to $389 per ounce in 2016.

Copyright The Financial Times Limited 2017. All rights reserved.
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