MOSCOW, August 29. /TASS/. Polyus, Russia’s largest gold producer, in the first half of 2023 increased gold production by 36% to 1.448 mln ounces, sales - by 24% to 1.261 mln ounces, the company said on Tuesday.

"Total gold sales volumes in the first half of 2023 amounted to 1,261 thousand ounces of gold, a 24% increase compared to the corresponding period of the previous year. This growth was driven by higher production volumes at Olimpiada and Blagodatnoye. The difference between sales (1,261 thousand ounces) and the total gold output (1,448 thousand ounces) reflects the accumulation of gold inventory at the refinery as well as the accumulation of gold contained in concentrate. Sales of flotation concentrate have been typically lagging behind production for several months," the company said.

The company’s adjusted net profit under IFRS in January-June 2023 increased by 33% year-on-year to $1.05 bln, adjusted EBITDA - by 37% to $1.687 bln, revenue - by 29% to $2.368 bln. Adjusted EBITDA margin was 71% against 66% in the same period a year earlier.

Meanwhile, the company's capital expenditures in the first half of 2023 increased by 4% to $400 mln.

The ratio of net debt (including derivatives) to adjusted EBITDA decreased to 0.6x from 0.9x in the second half of 2022 against a reduction in net debt and an increase in Adjusted EBITDA over the past 12 months.

Polyus also completed its share buyback program at a price of 14,200 rubles ($148.8) per share.

At the same time, according to the company "Volumes of ore mined increased 30% to 36,471 thousand tonnes, compared to the first half of 2022, reflecting the intensification of mining at the fourth stage of the pit at Olimpiada and at the third stage of the pit at Blagodatnoye. Volumes of ore processed amounted to 23,591 thousand tonnes, remaining flat on the corresponding period of the previous year."

Polyus is the world's leading gold mining company in terms of gold reserves and the fourth in terms of output volume. The company's principal enterprises are located in Russia’s Krasnoyarsk, Irkutsk, and Magadan regions, as well as the Republic of Sakha (Yakutia).