The Russia and Kazakhstan-based precious metals miner reported that gold equivalent production grew 3% from the year-earlier quarter to 375,000 ounces as record quarterly output from Varvara and a strong performance across other assets more than offset the planned grade-driven decline at Kyzyl.
The FTSE-100 member confirmed its 2021 production guidance of 1.5 million gold equivalent ounces and its cost guidance of US$700-750 an ounce on a total cash cost basis.
Net debt decreased by US$29mln during the quarter to US$1.32bn.
“In Q1 2021, Polymetal delivered strong production, strong free cash flow, and steady progress across development projects,” said chief executive Vitaly Nesis. “COVID-related construction cost inflation remains a pressing concern despite gradual improvements in the epidemiological situation.”