Russia’s largest gold producer, Polyus, announced record production and core earnings for 2024 on Wednesday, driven by higher gold prices, despite the ongoing Western sanctions on both Russia and the company.
Gold prices surged by more than 11% this year, reaching $2,915.80 per ounce, following a 27% increase in 2023, marking the metal’s best performance in over a decade. Russia accounted for 9% of global gold production in 2023, second only to China.
Polyus reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rising 49% to $5.7 billion, supported by revenue of $7.3 billion. Net income for the year climbed 86% year-on-year to $3.2 billion. The company attributed its strong financial performance to increased gold sales volumes and higher gold prices during the reporting period.
Despite facing Western sanctions, which have restricted the access of Russian industrial companies to critical equipment and forced them to seek alternative sources from countries like China, Polyus continues to adjust its sales channels and supply sources. The United States, the European Union, and Britain imposed a ban on Russian gold imports in 2022.
In December, Polyus blamed these sanctions for nearly doubling development costs at its massive Sukhoi Log gold deposit in Siberia, raising the projected cost to $6 billion.
Looking ahead, Polyus confirmed its intention to pay dividends twice a year, targeting 30% of EBITDA. The company’s board will review the fourth-quarter dividend on March 10, which could amount to about 575 roubles ($6.41) per share, according to T-Investments analysts.
Polyus exceeded its production guidance in 2024, achieving a 7% increase in output to 3 million ounces, with sales rising 11% to 3.1 million ounces. For 2025, the company expects gold output to range between 2.5 million and 2.6 million ounces, with capital expenditure forecast at $2.2 billion to $2.5 billion, a significant rise from the $1.26 billion spent in 2024, as it accelerates the development of the Sukhoi Log project.
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