REG-Polymetal International plc Polymetal: Sopka assets sale

Polymetal International PKAnnouncement

26/03/2020 07:05

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   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.

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   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
                                  Polymetal
                                              1 ir@polymetalinternational.com
   FTI Consulting                 Evgeny
                          +44 20  Monakhov   +44 20 7887 1475 (UK)
   Leonid Fink            3727
                          1000    Timofey     
   Viktor Pomichal                Kulakov
                                             +7 812 334 3666 (Russia)
                                  Kirill
                                  Kuznetsov
       Joint Corporate Brokers         
                          +44 20
   Morgan Stanley & Co.   7425
   International plc      8000
                                  RBC Europe
   Andrew Foster                  Limited

   Richard Brown                  Marcus     +44 20 7653 4000
                                  Jackson
   Panmure Gordon          
                                  Jamil Miah
   James Stearns          +44 20
                          7886
                          2500

   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.

    

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


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:ir@polymetalinternational.com


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