Polyus Gold to raise output, mull dividend-paper

MOSCOW, July 8 (Reuters) - Russia's top gold miner Polyus (PLZLq.L) reckons this year will be better than 2008 as it plans to increase production and considers an interim dividend, Chief Executive Yevgeny Ivanov was quoted as saying on Wednesday.

"This year promises to be even better," Ivanov told Vedomosti business daily, noting the global financial crisis had pushed up gold prices and that his company had not been hurt by the credit crunch as it had no loans.

"We plan to breach the 40 tonne mark. Polyus has never produced so much before," he added.

The company produced 38 tonnes (1.2 million ounces) of gold in 2008, flat from 2007, and equivalent to 20.6 percent of Russia's total output for the year [nLU262708]. Polyus reported record revenue of $1.1 billion in 2008, but net profit fell 40 percent, hurt by an impairment on securities investments [nLU434172] and no dividends were paid.

Ivanov said the company was now preparing a proposal to the board of directors for a first half 2009 interim dividend.

"For that the company has all the financial capacity," he was quoted as saying. "We think it is a more comfortable way for the shareholders to receive money from the company than the sale of

(their) shares through a buy back programme."

He also said the company was still interested in acquisition opportunities but its "appetite has been mostly sated" by the agreement to purchase 50.1 percent of KazakhGold Group Ltd (KZGq.L) [nLC724856].

(Writing by Toni Vorobyova; Editing by Anshuman Daga)

((antonina.vorobyova@reuters.com; Tel: +7495 7751242, Reuters Messaging: antonina.vorobyova.reuters.com@reuters.net)) Keywords: POLYUS/

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