Polymetal International (Polymetal)

The company "Polymetal" specializes in the extraction of precious metals, has assets in Kazakhstan and Armenia.

Performance indicators

2023: Annual revenue growth of 8% to $3.03 billion

Polymetal's revenue reached $3.03 billion, 8% higher than a year ago at $2.8 billion. The company published such data at the end of January 2024.

From the materials of the producer of gold and silver it follows that the net debt of Polymetal by the end of 2023 practically did not change and amounted to $2.38 billion (the Russian segment of the group accounted for $2.21 billion of debts). Annual production also "practically did not change" compared to 2022 and amounted to 1.714 million ounces in gold equivalent, of which 486 thousand ounces - at the enterprises of Kazakhstan, 1228 thousand ounces - at Russian.

Polymetal

Polymetal's revenue from Russian business in 2023 amounted to $2.13 billion, an increase of 14% compared to the previous year. In Kazakhstan, revenues decreased by 4%, to $893 million.

As noted in Polymetal, Russian assets experienced difficulties in selling stocks of finished products. Significant tightening of control over the export of precious metals led to the accumulation of concentrates of Kyzyl, Albazino, Nezhdaninsky, Vorontsovsky and Maysky in seaports.

In summing up the results of 2023, Polymetal stated that there were no fatal accidents among either the Group's employees or contractors during this period. There was not a single disability accident at Kazakhstani enterprises. In the Group as a whole, the Lost Time Accident Rate (LTIFR) among the Company's employees for the full year 2023 decreased by 24% to 0.07. During the year, two serious and eight minor lost time accidents were recorded. The DIS (number of working days lost due to workplace accidents) was 1,156 days, an increase of 32% compared to 2022.

Q4 2023 Production Results

History

2024

Sale of business in Russia to the Mangazea Plus group for $3.69 billion

Main article: Polymetal International plc

In February 2024, it was announced that the Kazakh gold mining company Polymetal was selling its Russian business to the Mangazea Plus Group, valuing it at $3.69 billion.

This amount also includes dividends in the amount of $1.429 million before taxes, which the Russian JSC will pay in favor of Polymetal, and cash remuneration in the amount of $50 million.

Polymetal will direct the funds received from the transaction for the construction of the Irtysh MMC in Kazakhstan.

Maaden International Investment купил 23,9% Polymetal

The state fund from Oman bought 23.9% of Polymetal. The press service of the largest Russia silver producer announced this on January 29, 2024.

Polymetal sold its stake, and IST group Alexander Nesis the buyer of the asset was owned by Maaden International Investment a consortium of investors led by Mercury Investments International, owned by the Oman government. Financial terms of the transaction are not disclosed.

Polymetal

The transaction involved 113 million shares of Polymetal International, which is 23.9% of the authorized capital. The remaining shares are distributed in this way (by January 29, 2024): 62% from institutional and private investors, 9.9% - BlackRock, 3.3% - Fodina B.V., another 0.9% belongs to directors and management.

We welcome our new large Oman shareholders led by Mercury Investments International LLC and look forward to our continued engagement. We are pleased that the new shareholder has confirmed its full support for Polymetal's strategy, which includes reducing risks to business by selling Russian assets and further developing production in Kazakhstan and the Central Asian region as a whole, said Vitaly Nesis, head of Polymetal International.

The Polymetal report notes that as a result of the transaction, ICT fully sold its stake in Polymetal. Konstantin Yanakov, representing ICT Holding, resigned from the board of directors. Polymetal representatives expect the new owner to nominate his candidate for the place of Yanakov.

Mercury Investments International LLC is a state-owned company incorporated in Oman and wholly owned by the Government of the Sultanate of Oman. The investment is in line with MII LLC's strategic objectives as well as the broader Oman government objectives under the Oman Vision 2040 programme, which aims to diversify into key sectors of the economy such as the global metals and mining sectors, Polymetal said.^[1]

2023

Leaving the London Exchange

Polymetal has ceased listing its shares on the London Stock Exchange (LSE). The press service of the company announced this on August 29, 2023.

In addition to the announcement of July 28, 2023, the company confirms that it has withdrawn the admission of ordinary shares to the premium segment of the FCA Official List and ceased trading in the main segment of the London Stock Exchange, one of the world's largest producers of gold and silver said in a statement.

Polymetal has stopped listing its shares on the LSE

It was also noted that the company's securities continue to be listed on the stock exchange of the Astana International Financial Center (AIX), which has become the primary trading platform for Polymetal.

On August 1, 2023, the company announced that it was suspending trading in shares on the LSE for re-registration in Kazakhstan and no longer intended to resume them. As a result of the re-registration, ordinary shares ceased to be compatible with electronic settlements under CREST, which led to the company's non-compliance with the basic requirements of listing on the London Stock Exchange. On August 7, 2023, Polymetal re-registered in Kazakhstan, as a result, the main listing of the company moved to AIX.

Polymetal is considering the possibility of selling Russian assets and plans to invest part of the proceeds in new enterprises in Kazakhstan. This was announced by the head of the company Vitaly Nesis at a teleconference with investors in August 2023.

I think that part of the funds will go to the construction of enterprises in Kazakhstan, and part to the payment of dividends from Polymetal International, - quotes the words of Nesis TASS. He called the sale of Russian assets a necessary measure.

Among those interested in buying Polymetal's Russian assets are such large industry players as Polyus, UMMC, Seligdar, Vladislav Sviblov and Alrosa, Kommersant found out. ^[2]

Sale of Tarutinskoye in Kazakhstan for $7 million

In mid-March 2023, it became known that Polymetal, Russia's largest silver producer and one of the leading gold miners, sold Tarutinskoye, an operator of the East Tarutinsky copper-gold ore show in Kazakhstan. The transaction amount amounted to $7 million. Read more here.

1998: Founding of the Company

Polymetal was founded in 1998 by the IST group in St. Petersburg with the aim of assembling a team of mining professionals to revive unused assets left over from USSR times and capitalize their potential. To do this, it was supposed to use the latest technological innovations at all stages of production - from geological exploration to obtaining the finished product. In the same year, Polymetal acquired the first assets - Vorontsovskoye, Khakandzhinskoye and Yuryevskoye gold and silver deposits.

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