S&P Global Ratings raised its long-term credit rating on Russia-based gold miner PJSC Polyus to BB from BB- with a stable outlook.
The rating agency believes that the company's credit metrics will continue to strengthen in 2019, supported by gold production growth and free cash flow generation, assuming relatively stable gold prices.
S&P Global Ratings said Nov. 12 that it expects that the company will achieve its target production level of 2.8 million ounces by 2019 and maintain it thereafter.
Additionally, the rating agency believes that Polyus will not start its massive investment in the new, large-scale Sukhoi Log gold project until 2021.
S&P Global Ratings expects Polyus to record positive free operating cash flow generation of about US$350 million in 2018, US$700 million in 2019 and US$1.0 billion in 2020.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
