Polyus Gold expects gold price rise and stable income

​In the near future gold prices will stay at the previous level or even grow due to the all of offer in the market, the CEO of Polyus Gold, P. Grachev, said.

We see the fall of offer, so there will be a natural price maintenance at the current level or even higher, Grachev said.

He reminded that gold production in South Africa fell by 4 times within the past decade and expenditure for production grows by at least 10% a year. The current gold price is slightly higher than the level that allows the gold mining companies to go on production, he said.

According to him, in 2015 Polyus became the producer with the lowest expenditure rate that made up about $400/ounce. He said that in Q1 the expenditure for production fell by another 10% mainly due to the rouble’s devaluation.

Speaking about the company’s financial perspectives, he said that he can’t make a forecast but in general the current prices are at the level of past years, maybe slightly higher, so EBITDA is to be at the level of 2015.