Polymetal shares jump 35% on possible Russian assets disposal
Reuters
Published Jul 19, 2022 15:07
Updated Jul 19, 2022 17:31
(This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine)
MOSCOW (Reuters) - Polymetal is considering disposing of its Russian assets in a shift to focus on its operations in Kazakhstan, the gold and silver producer said on Tuesday, sending its London-listed shares up 35%.
London-listed, Russia-focused Polymetal has not been directly targeted by Western sanctions imposed on Moscow after Russia sent troops into Ukraine in February.
But in common with other Russian commodity producers, it has suffered an impact as Western banks and shippers have reduced dealing with Russian companies even if they are not legally bound by sanctions law.
The potential deal would be part of the firm's broader strategy to "de-risk its ongoing operations", the company said in a statement.
Its assets in Kazakhstan produce over 500,000 troy ounces of gold per year with revenue in 2021 of $984 million, Polymetal added. Its 2021 revenue was $2.9 billion.
The miner hopes offloading its Russian assets might shore up Polymetal's footing on global capital markets, allowing it to re-enter equity indices that it was ejected from after Feb. 24, the company said.
The evaluation of the potential deal is ongoing, Polymetal said. It did not explain what the structure of the deal might be.
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Written By: Reuters
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