Polymetal International plc

FY2025 revenue was $1.5 billion, up 13% year over year. Adjusted EBITDA grew 37% to $972 million, and EBITDA margin expanded to 65% from 54%. Net cash increased 24% to $464 million; net operating cash flow was $600 million; capex was $255 million; and gross debt was reduced to $267 million. Annual payable gold equivalent output was 395,000 ounces, while mine-level output was 508,000 ounces. FY2025 total cash costs rose 17% to $1,100 per ounce, and all-in sustaining cash costs were slightly above $1,500 per ounce. Looking to 2026, management expects payable production and sales of 540,000 ounces as excess Kyzyl concentrate inventory is released. Management also guided to almost a 20% increase in total cash costs, a corresponding increase in AISC, and almost doubling of capex, with 2026 becoming one of the two peak capex years for Ertis POX.

Vitaly Nesis emphasized that 2025 was operationally and financially strong despite lower payable production, helped by a favorable gold price environment and substantial margin expansion. He highlighted safety as a major achievement, citing zero lost time injuries, zero days lost to work-related injuries, and eight consecutive years without fatalities in Kazakhstan. Strategically, he focused on reducing reliance on Russian POX, continuing to work down excess inventory, and advancing major projects such as Ertis POX, Syrymbet, and potentially Besshoky.

Evgenia Onuschenko walked through the financial bridge, noting revenue of $1.5 billion, adjusted EBITDA of $972 million, and a 65% EBITDA margin. She said total cash costs rose to $1,100 per ounce due to Kyzyl sales deferrals, domestic inflation above 12%, and higher mineral extraction tax, partially offset by an 11% tenge depreciation; AISC was slightly above $1,500 per ounce. She also highlighted strong liquidity, including $731 million in cash, $135 million of undrawn credit lines, and roughly $100 million in short-term investments, while net cash ended at $464 million and average debt cost was 5.7%.

Analysts focused heavily on project timing, capex, valuation, dividends, and geopolitical/legal risks tied to Russian POX dependence. Management said Ertis POX remains on track with autoclave installation complete and financing discussions advancing, while Syrymbet board approval is targeted for September and Besshoky has been delayed by permitting issues. On dividends, Nesis said the company is not yet ready to seriously consider one because it still needs more derisking of third-party concentrate processing and better financing flexibility; on relisting, he said reliance on a U.S.-sanctioned POX facility is a major obstacle.