Russia Gold Producer Polimetall Rakes in First Profit in Three Years

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May 11 – Leading Russian gold and silver producer Polimetall has registered profits for the first time in three years, announcing a US$96 million net income in 2009.

The company’s growth has been brought around by favorable gold prices. According the company’s press release, the company made US$96 million net income in 2009 compared to a loss of US$15.7 billion in 2008.

Last year the company essentially changed the structure and geography of its market. The gold share on company sales has grown from 49 to 55 percent. Silver accounted for US$241.9 million or 43 percent of revenues while gold accounted for $306.6 or 55 percent.

“In comparison with 2009, this year is going to be less favorable for the majority of gold mining companies,” Arbat Capital analyst, Artem Bakhtigozin told Kommersant. “Given the current condition of slowing down in growth on gold price and rouble getting stronger, their profitability might decrease.”