Polymetal, a manufacturer of gold and silver in Russia, plans to increase its sales in Asia, the company said on Thursday, as it reported a 36 percent drop in second-quarter revenue to $433 million due to sanctions-affected sales and growing inventories.
London-listed In light of Western sanctions on Russia, Polymetal is considering selling its Russian assets to concentrate on operations in Kazakhstan, the company said this week.
Chief Executive Officer Vitaly Nesis stated in a statement, “International sanctions on Russia continue to have a major effect on sales, procurement, and logistics.”
The management is entirely committed to ensuring the company’s operational and financial stability.
The business’s Russian mines amassed 130,000 troy ounces of gold equivalent in gold and silver bullion during the quarter, according to Polymetal, which added that the gap between sales and production is anticipated to be bridged in the third quarter as the company increases sales to Asia.
Polymetal said that its gold equivalent output decreased by 9 percent year-over-year to 326,000 ounces from April to June, and that it remained on target to reach its full-year production estimate.
The miner has not yet provided specifics on the planned reorganization to concentrate on Kazakhstan.
Thursday at 1000 GMT, a conference call will be held to review production figures with analysts.