Polymetal shares jump 35% on possible Russian assets disposal (updated)

Polymetal International PK

19/07/2022 17:10

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 (Adds detail, share reaction)
    MOSCOW, July 19 (Reuters) - Polymetal  POLYP.L  is
considering disposing of its Russian assets in a shift to focus
on its operations in Kazakhstan, the gold and silver producer
said on Tuesday, sending its London-listed shares up 35%.
    London-listed, Russia-focused Polymetal has not been
directly targeted by Western sanctions imposed on Moscow after
Russia sent troops into Ukraine in February.
    But in common with other Russian commodity producers, it has
suffered an impact as Western banks and shippers have reduced
dealing with Russian companies even if they are not legally
bound by sanctions law.
    The potential deal would be part of the firm's broader
strategy to "de-risk its ongoing operations", the company said
in a statement.
    Its assets in Kazakhstan produce over 500,000 troy ounces of
gold per year with revenue in 2021 of $984 million, Polymetal
added. Its 2021 revenue was $2.9 billion.
    The miner hopes offloading its Russian assets might shore up
Polymetal's footing on global capital markets, allowing it to
re-enter equity indices that it was ejected from after Feb. 24,
the company said.
    The evaluation of the potential deal is ongoing, Polymetal
said. It did not explain what the structure of the deal might
be.

 (Reporting by Reuters; editing by David Evans and Jasdon Neely)