REG-Polymetal International plc Polymetal: Report on payments to governments for the year 2022

Polymetal International PKAnnouncement

30/06/2023 15:15

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   Polymetal International plc (POLY)
   Polymetal: Report on payments to governments for the year 2022

   30-Jun-2023 / 17:00 MSK

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   Release time IMMEDIATE                             LSE, MOEX, AIX: POLY
   Date         30 June 2023                                    ADR: AUCOY
                                                       

   Polymetal International plc

   Report on payments to governments for the year 2022

   Polymetal International plc issues the  report on payments to  governments
   for the year ended 31 December 2022.

   INTRODUCTION

   This Report provides an  overview of the payments  to governments made  by
   Polymetal International plc and  its subsidiary undertakings  (hereinafter
   referred to as “Polymetal” or “the  Group”) for the year 2022 as  required
   under the  UK’s Report  on Payments  to Governments  Regulations 2014  (as
   amended in December 2015).  These UK Regulations  enact domestic rules  in
   line with Directive  2013/34/EU (the EU  Accounting Directive (2013))  and
   apply to large extractive companies, whose securities are publicly  listed
   on a  UK-regulated stock  market, that  are involved  in the  exploration,
   prospection, discovery,  development  and  extraction  of  minerals,  oil,
   natural gas deposits or other materials.  This Report is also intended  to
   satisfy the requirements of the  Disclosure and Transparency Rules of  the
   Financial Conduct Authority in the United Kingdom.

   BASIS OF PREPARATION

   Legislation

   This report is  prepared in  accordance with  The Reports  on Payments  to
   Governments Regulations 2014 as enacted in the UK in December 2014 and  as
   amended in December 2015.

   Reporting entities

   This Report includes payments to  governments made by Polymetal.  Payments
   made by entities  over which  Polymetal has joint  control or  significant
   influence are excluded from this Report.

   Activities

   Payments  made  by  Polymetal  to  governments  arising  from   activities
   involving  the  exploration,   prospection,  discovery,  development   and
   extraction of minerals are disclosed in this Report. It excludes  payments
   related to  refining  activities  made  to the  refineries  owned  by  the
   government agencies and any payments  which are not directly  attributable
   to the production and exploration activities.

   Government

   Government includes  any  national,  regional  or  local  authority  of  a
   country, and includes a department, agency or entity that is a  subsidiary
   of a government.

   Project

   Payments are reported at project level  except that payments that are  not
   attributable to a  specific project  are reported at  legal entity  level.
   Project is  defined as  operational  activities which  are governed  by  a
   single contract,  or licence  agreement, and  form the  basis for  payment
   liabilities with  a  government.  If  such  agreements  are  substantially
   interconnected, those agreements are to be treated as a single project.

   “Substantially interconnected” means  forming a set  of operationally  and
   geographically integrated contracts, or licence agreements that are signed
   with a  government  giving  rise to  payment  liabilities.  Indicators  of
   integration include, but are not limited to, geographic proximity, the use
   of shared infrastructure and common operational management.

   License agreements  are aggregated  for  the purposes  of reporting  as  a
   single project only when those legal agreements have substantially similar
   terms and are both geographically and operationally integrated.

   Payments

   The information is reported under the following payment types:

   Income taxes

   These are  taxes  paid  by  Polymetal on  its  income  and/or  profits  in
   accordance  with  legislation  enacted  in  the  applicable  jurisdiction.
   Payments are reported  net of  refunds. Value added  tax, personal  income
   taxes, social taxes, property taxes are excluded.

   In Kazakhstan  income  tax is  set  at  a rate  of  20% and  there  is  no
   allocation for regional or local income taxes in this country.

   Mining tax

   Mining tax is a royalty payable  in Kazakhstan, which is calculated  based
   on the value of the precious metals extracted in the period. In Kazakhstan
   the value is  determined based on  the market price  whether or not  there
   were sales during the period.

   Licence fees

   These are  fees and  other  sums paid  as  consideration for  acquiring  a
   licence for  gaining access  to an  area where  extractive activities  are
   performed.  Administrative  government  fees  that  are  not  specifically
   related to the extractive  sector, or to  access to extractive  resources,
   are excluded. There were no material licence payments during year ended 31
   December 2022 and 31 December 2021.

   Rental fees

   The land  in Kazakhstan  on which  the Group’s  production facilities  are
   located is  owned  by  the  state. The  Group  leases  this  land  through
   operating lease agreements. There were no material rental payments  during
   year ended 31 December 2022 and 31 December 2021.

   Other payments

   Other payments include enviromental emission fees, and also payments  made
   and social commitments in  accordance with subsoil contracts  attributable
   to the Kyzyl project.

   Cash and in-kind payments

   Payments are reported on cash basis. No in-kind payments were made  during
   years ended 31 December 2022 and 31 December 2021.

   Materiality Level

   Any payment, whether made as  a single payment or  as a series of  related
   payments, below GBP 86,000 within a  financial year is excluded from  this
   Report.

   Payments made to governments by joint ventures or associates of the  Group
   in proportion  to the  company’s  interest in  the respective  venture  or
   associate are insignificant to this Report based on materiality level set.

   Exchange Rate

   Relevant payments  are made  by  Polymetal in  Kazakh  Tenge and  for  the
   purpose of  this Report  are translated  to  the US  Dollar based  on  the
   foreign exchange rate at the relevant monthly average rate.

    

   PAYMENTS PER GOVERNMENT                                              
   FOR THE YEAR 2022                                                    
   Government                              Income tax Mining tax Other Total
   mln USD
   Kazakhstan                                     149         52 9 1    210
                                                                            
   PAYMENTS PER                                                             
   PROJECT
                                                                            
   Entity                          Project Income tax Mining tax Other Total
   mln USD
                                                                        
   Bakyrchik Mining Venture LLC    Kyzyl          101         34 6 2    141
   Varvarinskoye JSC               Varvara         37          4     1    42
   Komarovskoye Mining Company LLC Komar           11         14     2    27
   Total                                          149         52     9   210

    

    

   PAYMENTS PER GOVERNMENT                                           
   FOR THE YEAR 2021                                                 
   Government                              Income tax Mining  Other Total
   mln USD                                               tax
   Kazakhstan                                      92     42 11 3    145
                                                                         
   PAYMENTS PER                                                        
   PROJECT
                                                                     
   Entity                          Project Income tax Mining  Other Total
   mln USD                                               tax
                                                                     
   Bakyrchik Mining Venture LLC    Kyzyl           74     27  7 4    108
   Varvarinskoye JSC               Varvara         11      2      1    14
   Komarovskoye Mining Company LLC Komar            7     13      3    23
   Total                                           92     42     11   145

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   * In accordance with a memorandum with East-Kazakhstan Oblast
   Administration (local Kazakhstan government) Polymetal participates in
   financing of certain social and infrastructure development project of the
   region. During the year ended 31 December 2022 Polymetal paid US$ 4
   million (2021: US$ 5 million) under this programme.

   Enquiries

       Investor Relations
   Polymetal         5 ir@polymetalinternational.com
   Evgeny Monakhov  +44 20 7887 1475 (UK)
   Kirill Kuznetsov +7 717 261 0222 (Kazakhstan)

    

                           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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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           JE00B6T5S470
   Category Code:  PGR
   TIDM:           POLY
   LEI Code:       213800JKJ5HJWYS4GR61
   OAM Categories: 1.3. Payments to governments
   Sequence No.:   254796
   EQS News ID:    1670299


    
   End of Announcement EQS News Service

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References

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   5. mailto:ir@polymetalinternational.com


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