By Jaime Llinares Taboada

Polyus PJSC on Thursday posted a significantly higher profit for the third quarter and cut its cost forecasts for 2020.

The Russian gold miner made a net profit of $516 million for the three months to Sept. 30, up from $300 million a year earlier. However profit fell 25% compared with the second quarter.

Polyus benefited from higher gold production, sales and prices. In the third quarter production increased 2%, sales volumes were up 6% and average realized prices strengthened 29% from 2019 levels.

In addition, total cash costs declined 10% to $369 per ounce, and the company has revised full-year cost guidance down to $375-425 per ounce from the previous $400-$450.

In a separate statement, Polyus said that it has completed a pre-feasibility study for its Sukhoi Log project in Eastern Siberia. The mine is forecast to have annual production of 2.3 million ounces, with cash costs of $390 per ounce and initial capital expenditure of $3.3 billion.

"Sukhoi Log is a greenfield project of unparalleled quality and scale. We are committed to developing the world's largest untapped gold deposit, the cornerstone of Polyus' long-term growth strategy, in the most disciplined and efficient way," Chief Executive Pavel Grachev said.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

11-12-20 0340ET