Russia's Polyus H1 Revenue Up 27% to $4.674 Billion

en.Wedoany.com Reported - On August 31, Polyus released its production and financial data for the first half of 2026. During the period, gold production stood at 1.2869 million ounces, down 2% year-on-year; gold sales reached 950,000 ounces, down 20% year-on-year. Driven by a higher average selling price of refined gold, the company posted revenue of $4.674 billion, up 27% year-on-year; profit for the period was $829 million, down 59% year-on-year.

In the first half of the year, Polyus completed mining and stripping volumes of 118.967 million cubic meters, up 10% year-on-year, of which overburden stripping amounted to 99.703 million cubic meters, up 9% year-on-year; ore mined totaled 45.356 million tonnes, up 16% year-on-year, and ore processed reached 25.876 million tonnes, up 2% year-on-year, with the overall recovery rate maintained at 84.5%. The decline in gold production was primarily attributable to the transition of mines in the Krasnoyarsk region to the next mining phase in accordance with the mining plan. The company maintains its 2026 gold production guidance of 2.5–2.6 million ounces.

The company's total cash costs (TCC) for the first half of the year rose to $1,069 per ounce, up 64% year-on-year. Polyus attributed the cost increase to higher mineral extraction tax driven by the higher average selling price of gold, ruble appreciation, higher wages and tariffs, and increased maintenance expenses, while lower processed ore grades at Olimpiada and Blagodatnoye also impacted costs. The mineral extraction tax accounted for 53% of unit TCC, up 8 percentage points from 2025. The company has adjusted its 2026 TCC guidance to $990–$1,040 per ounce; assuming an average gold price of $4,500 per ounce for the full year and an exchange rate of 80 rubles per US dollar, TCC is expected to be $1,070–$1,120 per ounce.

Capital expenditures for the period totaled $946 million, up 2% year-on-year, of which stripping capital expenditures amounted to $397 million, up 24% year-on-year. Polyus maintains its 2026 capital expenditure plan of $2.2–$2.5 billion, with a net debt to adjusted EBITDA ratio of 1.1x as of the end of the first half.

Regarding projects under construction, Sukhoi Log continues the construction of initial infrastructure, including shift camps, open-pit infrastructure, and energy facilities, while advancing the upgrade of the Taksimo logistics base; at the Blagodatnoye ZIF-5 processing plant project, process line hook-up, milling preparation, and installation of process piping in the hydrometallurgy area have been completed, with key infrastructure construction finished and overall progress exceeding 95%. The Kuranakh project has completed commissioning of the upgraded crushing–agglomeration process system and continues to implement automation and auxiliary infrastructure works.