Polyus Gold Releases Financial Statements for H1 2007
OREANDA-NEWS. OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia’s leading gold producer, today releases its condensed consolidated financial statements for the six months ended 30 June 2007 prepared in accordance with International Financial Reporting Standards (IFRS). The financial statements have been reviewed in accordance with International Standard on Review Engagements by Deloitte & Touche.
For the first half of 2007 the revenues of OJSC Polyus Gold and its subsidiaries increased by $12 million (4%) as compared to the first six month of 2006 and amounted to $309 million. This is stated in the condensed consolidated financial statements of OJSC Polyus Gold and its subsidiaries for the six months ended 30 June 2007. The increase in Group’s revenues is mainly a result of the 4% increase of the average gold price from $590 in the first half of 2006 to $659 in the first half of 2007.
Cost of gold sales in the first half of 2007 increased by US$ 39 million (23%) period-on-period and amounted to $ 204 million. This increase resulted primarily from the increase in stripping works (by $27 million or 16% period-on-period) at Vostochny pit of Olimpiada mine aiming at expanding the pit walls. The expansion of Vostochny pit at Olimpiada will help maintain the stable level of production at the mine in the long run. In accordance with IFRS, stripping costs are written off as incurred.
Group’s gross profit decreased by $27 million (21%) year-on-year and amounted to $105 million, which was mainly a result of increased stripping works.
The Group’s administrative costs for the six months ended 30 June 2007 included expenses incurred in relation to the option plan amounting to $133 million. This lead to increase in the Group’s administrative costs in the period under review. Group’s net loss for the first half of 2007 amounted to $93 million, which was a result of the factors stated above.
The management of Polyus Gold would like to reiterate that the net loss for the first half of 2007 resulted from the expenses under share option plan and is of temporary nature.
The complete version of the consolidated financial statements for the six months ended 30 June 2007, prepared in accordance with IFRS is available on the Group’s website under Investor Relations / Reports / Financials.
Polyus Gold is to hold a conference call devoted to the condensed consolidated financial statements for H1 2007. Participants of the conference: Pavel Skitovich, General Director; German Pikhoya, Deputy General director, corporate development; Dmitry Glotov, Deputy General director & CFO Ekaterina Vladimirova, Director, IFRS The details of the conference call will be available at the company’s web-site www.polyusgold.com.
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