Public Joint Stock Company Polyus (PLZL) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 was USD 2,733 million, up from USD 2,360 million year-over-year, driven by higher gold sales volumes and prices.

• Net profit rose sharply to USD 1,583 million from USD 558 million year-over-year, reflecting improved operating performance and a gain from discontinued operations.

• The Alluvials business unit was sold in April 2024, resulting in a gain of USD 141 million and a strategic focus on core open pit mining projects.

• Total comprehensive income reached USD 1,607 million, reversing a loss of USD 527 million in the prior year period.

Financial highlights

• Operating profit increased to USD 1,754 million from USD 1,348 million year-over-year.

• Adjusted EBITDA from continuing operations was USD 2,021 million, up from USD 1,682 million year-over-year.

• Basic EPS from continuing and discontinued operations was USD 16.74, up from USD 4.13 year-over-year.

• Cash and cash equivalents rose to USD 2,592 million from USD 1,711 million at year-end 2023.

• Net cash generated by operating activities was USD 1,551 million, up from USD 1,068 million year-over-year.

Outlook and guidance

• Management considers the group has adequate resources to continue operations for at least the next 12 months, despite ongoing geopolitical and market risks.

• A new Russian law will increase the corporate profit tax rate from 20% to 25% effective 1 January 2025, with an estimated negative impact of USD 95 million if applied at the reporting date.