REG-Polymetal International plc Polymetal: Sale of North Kaluga

Polymetal International PKAnnouncement

11/05/2020 07:05

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   Polymetal International plc (POLY)
   Polymetal: Sale of North Kaluga

   11-May-2020 / 09:00 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         11 May 2020

    

    

   Polymetal International plc

   Sale of North Kaluga

   Polymetal announces that it has agreed  to sell North Kaluga property  for
   US$ 13.5 million in cash and debt assumption plus royalty, which  together
   represents a total transaction value of approximately US$ 27 million.

   "We continue to  advance our  non-core asset disposals.  The North  Kaluga
   deal brings us some cash and  retains exposure to commodity prices",  said
   Vitaly Nesis, Group CEO of Polymetal.

   Polymetal has  entered into  a  legally binding  agreement to  sell  North
   Kaluga to  North  Kaluga  Mining Limited.  The  transaction  consideration
   consists of a US$ 10.7 million fixed upfront cash payment, 5% NSR and  50%
   royalty on excess  revenue. Excess  revenue is defined  as actual  revenue
   less base revenue, where the latter is potential revenue calculated  based
   on actual grades and the  following metal prices: Cu  = US$ 5,500/t, Zn  =
   US$ 2,310/t, Au = US$  1,650/oz, Ag = US$ 18.7/oz.  The fair value of  the
   royalties is estimated  at US$ 13.5  million 1  1  as of  the date of  the
   agreement. Both NSR and the excess  revenue royalty are capped at US$  300
   million. The new owner will also repay all debt owed by the North Kaluga's
   license holder to  Polymetal as  at transaction completion  date (US$  2.8
   million as of the date of the agreement).

   ABOUT NORTH KALUGA

   North Kaluga is a polymetallic deposit located in the Sverdlovsk region of
   Russia. The property's mineral resources  comprise copper, gold, zinc  and
   silver, with most of the value attributable to copper and gold.

   JORC-compliant reserves for underground mining stand  at 212 Koz of GE  at
   12.9 g/t as at  01.06.2018. The asset  was marked as  non-core due to  its
   small size, short life-of-mine  and lack of spare  capacity at the  future
   flotation circuit at Voro.

   About Polymetal

   Polymetal International plc (together with its subsidiaries - "Polymetal",
   the "Company", or the "Group") is a top-10 global gold producer and  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
                                              2 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
                          7425
   Morgan Stanley & Co.   8000
   International plc
                                  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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    3  1  The Company's estimate at 15% discount rate.

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   ISIN:          JE00B6T5S470
   Category Code: DIS
   TIDM:          POLY
   Sequence No.:  62766
   EQS News ID:   1040409


    
   End of Announcement EQS News Service

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References

   Visible links
   1. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_HNQYgnrz.html#_ftn1
   2. mailto:ir@polymetalinternational.com
   3. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_HNQYgnrz.html#_ftnref1


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