Gold miner Polymetal postpones dividend decision amid sanctions on Russia

Polymetal International PK

13/04/2022 10:25

April 13 (Reuters) - Russian gold and silver producer
Polymetal  POLYP.L  has postponed a decision on its 2021 final
dividend payment amid uncertainty caused by Western sanctions on
Moscow for what Russia calls a "special military operation" in
Ukraine.
    Several other Russian metals producers, including steel
maker Severstal  CHMF.MM , have also delayed decisions on
dividends as sanctions on Russian banks and its economy
complicate trade logistics and the transfer of payments.
 urn:newsml:reuters.com:*:nASM0007B3
    "We have thoroughly re-evaluated the Board's March
recommendation on dividends, taking into account recent changes
in the 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," Riccardo Orcel, Polymetal's board chairman, said in a
statement on Wednesday.
    The company had on March 2 proposed a final dividend of
$0.52 per share, or $246 million in total.  urn:newsml:reuters.com:*:nL1N2V50HV
    "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," Orcel
added.
    The decision on the 2021 final dividend payment, which was
due to be put to shareholders for approval on April 25, is now
postponed until August, the London-listed gold miner said.
    Polymetal itself has not been targeted by Western sanctions,
but those on Russian banks and the economy had created
uncertainty over the availability of funds and caused higher
costs of funding, while the liquidity crunch and supply chain
limitations caused higher working capital needs, it added.

 (Reporting by Reuters; Editing by David Holmes)