Major Russian gold and silver producer, Polymetal, has posted a FY 2008 Net Loss of $15.7 million under U.S. GAAP.

The bottom line loss narrowed from the $22.8 million Net Loss posted for FY 2007, with Adjusted EBITDA jumping 161% year on year to $182.6 million, on Revenues of $502.7 million, up 63%.

The company attributed the result to strong sales volumes and average prices throughout the year for both gold and silver, combined with increased production of both precious metals. The downside was an increase in production costs, coupled with an increase in debts, and debt servicing costs.

Despite the net result Polymetal CEO, Vitaly Nesis, was upbeat about production, and enthusiastic about the outlook.

“Significant improvement in operating profitability and competitive cost position will definitely allow us to proceed with the aggressive expansion program and capitalize on the re-emergence of gold as the safe-haven investment of choice.”