MOSCOW (Reuters) – Polymetal, a Russian company that makes gold and silver, said Thursday that it wants to increase sales to Asia. It said this as it reported that its second-quarter sales were down 36% to $433 million because of sanctions and rising stockpiles.
London-listed Polymetal said this week that it is thinking about selling its Russian assets so it can focus on its operations in Kazakhstan. This is because the West has put sanctions on Russia.
In a statement, CEO Vitaly Nesis said that international sanctions against Russia are still having a big effect on sales, buying, and shipping.
“The management’s main goal is to keep the company’s operations and finances stable.”
Polymetal said that the company’s Russian mines had 130,000 troy ounces of gold equivalent in gold and silver bullion at the end of the quarter. It also said that the gap between sales and production is likely to close in the third quarter as sales to Asia pick up.
Polymetal stated that while its gold equivalent production fell by 9% from April to June of last year to 326,000 ounces, it was still on track to meet its full-year production guidance.
The miner hasn’t said much about the possible reorganisation to focus on Kazakhstan.
It will hold a conference call with analysts on Thursday at 10 a.m. GMT. to talk about production results.