POLYMETAL INTERNATIONAL PLC Polymetal: Sopka assets sale

Transparency directive : regulatory news

26/03/2020 08:00

Polymetal International plc (POLY)
Polymetal: Sopka assets sale

26-March-2020 / 10:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


Release time

IMMEDIATE                        LSE, MOEX, AIX: POLY / ADR: AUCOY

Date

26 March 2020

 

 

Polymetal International plc

Sopka assets sale

Polymetal sold Sopka assets for a total consideration of RUB 800 million payable in cash (US$ 10 million) and 1% Net Smelter Return (NSR).

The assets sold have been ring-fenced into Irbychan Gold LLC ("IG"), a separate legal entity established to warehouse non-core assets of the Omolon hub. These assets include low-grade ore stockpiles from Sopka, Dalneye and Oroch deposits as well as mining and exploration licenses for Sopka, Dalneye, and Irbychan deposits. Mining at the properties ceased in 2018. All of the remaining high-grade ore has been trucked to Kubaka mill for subsequent processing.

Polymetal sold IG to an unrelated Russian private mining company. The transaction consideration comprises of RUB 800 million fixed upfront cash payment (US$ 10 million at the RUB/USD exchange rate as of the date of closing) and 1% annual NSR payable if gold price exceeds US$ 1,500/oz. The royalty proceeds are capped at US$ 50 million in rouble equivalent. Additionally, if average gold price in 2022 exceeds $1,600/oz, the buyer will be required to compensate any positive FX difference between the USD values of rouble fixed cash payment made (RUB 800 million) as at 31 December 2022 and as at 30 January 2020.

IG was classified as an asset held for sale in FY 2019 financial statements and the Company recognised a US$ 28 million write-down in its consolidated income statement. The fair value of the asset was estimated at US$ 13 million (RUB 800 million at the RUB/USD exchange rate as of 31 December 2019).

About Polymetal 

Polymetal International (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is a top-20 global gold producer and a top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.

Enquiries

Media

 

Investor Relations

FTI Consulting

Leonid Fink

Viktor Pomichal

+44 20 3727 1000

Polymetal

Evgeny Monakhov

Timofey Kulakov

Kirill Kuznetsov

ir@polymetalinternational.com

+44 20 7887 1475 (UK)

 

+7 812 334 3666 (Russia)

Joint Corporate Brokers

 

Morgan Stanley & Co. International plc

Andrew Foster

Richard Brown


Panmure Gordon

James Stearns

+44 20 7425 8000

 

 

 

+44 20 7886 2500

RBC Europe Limited

Marcus Jackson

Jamil Miah

+44 20 7653 4000

Forward-looking statements

This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or "should" or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company's control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company's actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

 



ISIN: JE00B6T5S470
Category Code: DIS
TIDM: POLY
Sequence No.: 54681
EQS News ID: 1007181

 
End of Announcement EQS News Service

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