Russia's Polymetal postpones 2021 final dividend as sanctions-related challenges mount
(Kitco News) - Russia's Polymetal (LSE: POLY), a top-10 global gold producer and top-5 global silver producer, announced today that its Board of Directors postpones the decision on 2021 final dividend payment.
The company said that the Board has reviewed significant changes in operating conditions that the Group has encountered in the last few weeks.
As a result, the company's Board has concluded that it is no longer appropriate to recommend or declare the 2021 final dividend payment that was due to be put to shareholders for approval at the Annual General Meeting on 25 April 2022 and has decided to postpone the decision on the dividend payment to August 2022 (along with interim dividend decision for 1H 2022).
The company added that this decision was made due to mounting uncertainty with availability of funds caused by sanctions on Russian banks and economy, higher working capital needs as a result of liquidity crunch and supply chain limitations, as well as balance sheet constraints imposed by lower credit availability as well as significantly higher cost of funding.
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"We have thoroughly re-evaluated the Board's March recommendation on dividends taking into account recent changes in macro and regulatory environment and unanimously have come to a conclusion that the payment decision should be postponed in order to sustain the stability and liquidity of the business. We will continue to monitor the operating, funding and regulatory conditions in which the business operates, hoping that stability is restored, improving visibility which would allow us to return to our cash distribution policy," said Riccardo Orcel, Chair of the Board.
Polymetal International plc is a top-10 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan listed on the London Stock Exchange, Moscow Stock Exchange and Astana International Exchange. Polymetal has a portfolio of nine producing gold and silver mines and a pipeline of future growth projects.