Polymetal Board of Directors recommends not paying dividends for 2022
The Board of Directors of the gold mining company Polymetal recommended not to pay dividends for the results of 2022. The company said in a statement that the decision was made after assessing the liquidity and solvency of the business "in light of continuing significant uncertainty."
“Given the group’s leverage (Net Debt/Adjusted EBITDA of 2.35, well above our target of 1.5) and the significant impact of external factors, the Board of Directors has decided not to recommend the payment of dividends for 2022 in order to maintain the strategic and operating flexibility of the company in a highly volatile and challenging environment,” reads the message.
From the company's preliminary financial results, it follows that Polymetal's revenue for 2022 decreased by 3% compared to 2021 and amounted to $2.8 billion. Gold sales decreased by 1% year-on-year to 1.37 million ounces, while silver sales increased by 6% to 18.5 Moz.
Disruptions in distribution channels led to sales lagging behind production in the second and third quarters of 2022, the company noted. Polymetal's total cash costs rose 31% to $1.3k per GE ounce. The company's net debt increased to $2.39 billion from $1.6 billion as of December 31, 2021.
Polymetal is Russia's largest silver producer and one of the leading gold miners. In mid-2022, the company's board of directors refused to pay dividends for 2021. In January of this year, Head of Polymetal Vitaly Nesis declaredthat the payment of dividends in 2023 will be possible in case of re-registration of the company. Company now considers re-registration from the island of Jersey to Kazakhstan.
More details - in the material "Kommersant" "Polymetal Stroked vs. Jersey".