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Russia's Polymetal sees capex flat at $370 mln in 2018
November 13, 2017 / 10:33 AM / 10 days ago

Russia's Polymetal sees capex flat at $370 mln in 2018

MOSCOW, Nov 13 (Reuters) - Russian gold and silver producer Polymetal plans to keep capital expenditure (capex) flat at $370 million in 2018, decreasing the figure to $300 million in 2019, it said in a presentation prepared for its investor day in London on Monday.

* Polymetal is on track to produce 1.4 million ounces of gold equivalent (GE), a mixture of gold and other metals, in 2017. In 2018, 2019 and 2020 its output is expected to reach 1.6 million ounces of GE, 1.7 million ounces and 1.8 million ounces, respectively;

* The share of gold in its gold equivalent production is expected to rise to 87 percent in 2020 from 77 percent in 2017;

* Polymetal’s total cash costs are on track to reach $600-650 per ounce of GE in 2017, its net debt was at $1.6 billion at the end of September;

* Polymetal’s net debt to adjusted EBITDA (earnings before interest, taxation, depreciation and amortisation) is expected to be below 2.0 by the end of 2017 compared with the current 2.2;

* In January, the company may consider recommending a special dividend;

* Earlier on Monday, Polymetal also reported an initial ore reserve estimate for its Nezhda gold property in Russia, with total capital costs estimated at $249 million. (Reporting by Polina Devitt; Editing by Dale Hudson)

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