MOSCOW, January 31. /TASS/. Gold equivalent (GE) output of Polymetal edged down to 1.714 mln ounces in 2023 from 1.717 mln ounces in the previous year, the company said in a report.

Q4 2023 production decreased by 15% to 441,000 ounces of gold equivalent "because of Q4 2022 abnormally high production level driven by exceptional inventory unwind at Dukat and Nezhda," according to the report.

Revenue for FY 2023 grew by 8% to $3 bln thanks to higher gold and silver prices. Q4 revenue fell by 16% year-on-year to $0.9 bln.

Net debt was largely stable as of the end of 2023 both quarter-on-quarter and year-on-year and stood at $2.38 bln. The company expects full-year Total Cash Costs (TCC) and All-in Sustaining Cash Costs (AISC) to be below the announced guidance range of $950-1,000/GE oz and $1,300-1,400/GE oz, respectively, given the substantial positive impact of ruble devaluation on local-currency costs. CAPEX is expected to be at the lower end of the guidance range of $700-750 mln.

"During Q4, the company continued to struggle with inventory conversion into sales in Russia. Significant tightening of concentrate exports regulations in Russia led to material accumulation in seaports for concentrates from Kyzyl, Albazino, Nezhda, Voro and Mayskoye," Polymetal said.

Moreover, the company has successfully secured a land plot for the Ertis POX project in the Pavlodar Special Economic Zone in Kazakhstan.

Polymetal expects its Kazakhstan assets to deliver relatively stable production at 475 Koz of GE. Costs are estimated in the ranges of $900-1,000 GE oz for TCC and $1,250-1,350/GE oz for AISC. Capital expenditures are expected to be approximately $200 mln, including $60 mln for Ertis POX.

Polymetal is one of the world’s ten largest gold producers and five biggest silver makers. Its assets are located in Russia and Kazakhstan. The company has a portfolio of ten producing gold and silver mines and a pipeline of future growth projects.