Page 181 - RusRPTJun24

silver rose 4.2% to $30.81 an ounce on May 17, the highest intraday level since February 2013. Silver prices have soared 29% this year, outpacing gold and making it one of the best-performing metals of the year.
Russian gold miner Yuzhuralzoloto posted IFRS revenue growth of 19% year on year to RUB67.8bn in 2023, with an EBITDA increase of 23% y/y to RUB30.9bn and currency-adjusted net profit of RUB10.8bn. Yuzhuralzoloto’s top line in 2023 grew on the back of gold price growth and ruble devaluation, confirming previous reports based on redacted preliminary financial statements. As followed by bne IntelliNews, in February 2024 UGK was part of the latest designations by the OFAC in the Russian mining sector marking the second anniversary of the full-scale military invasion of Ukraine. But its main shareholder Konstantin Strukov shrugged off the sanctions and pledged no significant changes to export volumes. Currently all major Russian gold miners are under full blocking US sanctions, with the SDN-list including Polyus Gold, Polymetal, Vladislav Sviblov's Highland Gold, Vysochaishiy, Russian assets of Geopromining, gold mining assets of Andrey Komarov. However, this has not caused any noticeable decline in gold exports so far.
Polymetal revealed its 1Q24 operating results. Production increased by 2% YoY to 117 thousand ounces of ash. eq. due to increased volumes of concentrate shipments in Kyzyl and corresponded to 24.6% of the production plan for 2024. Sales volumes decreased by 7% YoY and amounted to 116 thousand ounces of gold. eq. The company notes the persistence of logistics restrictions associated with the sale of concentrate, but expects to sell the reserves previously accumulated in the ports of the Far East by the end of the year. Revenue grew by 26% YoY to $294 million amid rising gold prices and shorter lead times for funds to be received. On June 11, Polymetal plans to present the company's updated strategy and dividend policy.
In 2023, the world produced over 3,000 tonnes of gold, with China, Australia, and Russia being the top producers. China was the largest producer, accounting for more than 12% of the global output. China also emerged as the largest buyer of gold, with its central bank purchasing 225 tonnes of gold, according to the World Gold Council. The gold produced in 2023 was primarily used in jewelry manufacturing, while a significant portion was sold as an investment, such as in gold bars or coins.
Breakdown of gold usage in 2023:
- Jewelry: 46%
- Central banks and institutions: 23%
- Physical bars: 16%
- Official coins, medals, and replicas: 9% - Electrical and electronics: 5%
- Other uses: 1%
181 RUSSIA Country Report June 2024 www.intellinews.com