Russian gold producer Polyus raised profit by 7% in 2017

Russia's largest gold producer, Polyus, posted a 7 percent increase in 2017 adjusted net income to $ 1.02 billion, the company said on Thursday.

The gold producer saw sales growth last year and expects to invest and produce more in 2018 as it aims to ramp up production at its newly established Natalka gold mine in Russia's Far East.

In the fourth quarter, Polyus posted an adjusted net income of $ 242 million, down 19% quarter-on-quarter. The company did not provide a comparison with the last quarter of 2016.

Full-year revenues increased 11% to $ 2.7 billion and adjusted earnings before tax, amortization and amortization (EBITDA) were $ 1.7 billion, up 11% from a year earlier.

The company reported adjusted EBITDA of $ 465 million for the fourth quarter, down 2% from the third quarter, and a minor analyst estimate of $ 469 million.

The positive result at Polyus, as expected, said Oleg Petropavlovsky, an analyst at BCS Global Markets, adding that the 2% decline in fourth-quarter EBITDA was "negligible."

The company's shares rose 1.9 percent.

In its report, Polyus said it plans to invest about US $ 850 million in the business, up from US $ 804 million in 2017. This will include capital operating expenses of $ 150 million associated with the main Natalka gold mine in the Russian Far East.

Earlier, Polyus revised its production forecast for 2018 and said it plans to accelerate the ramp-up of Natalka's operations.

Around the same time, Polyus announced that it will also work to refinance its $ 3.08 billion net debt, focusing on a new $ 250 million bond. USA for this purpose.

He also changed his dividend policy for 2017 and 2018, setting a minimum of USD 550 million, or 30% EBITDA, whichever is higher.

Polyus is controlled by the family of a Russian tycoon and MP Suleiman Kerimov, who was arrested in France in November on tax evasion charges. According to Russian media reports, Kerimov denies these allegations.