Silver bars pile up Russia's Polymetal as it seeks export routes (updated)

Polymetal International PK

23/06/2022 09:58

(Adds details, quotes, context)
    June 23 (Reuters) - Silver bars have piled up at Russia's
Polymetal  POLYP.L  as it seeks new export destinations to
replace Europe, it said on Thursday, adding the bullion accounts
for 5% of its annual sales.
    Polymetal has not been directly targeted by Western
sanctions imposed on Moscow after it sent thousands of troops
into Ukraine on Feb. 24.
    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.
    "Silver bullion inventory continues to accumulate absent
reliable export channels and a non-existent domestic market.
Discussions are under way with a variety of commercial and
industrial international buyers," Polymetal said in a statement.
    The company's sales of gold bullion and concentrate from
Kazakhstan continue as usual and sales of gold bullion and
concentrates from Russia to Asia have returned to regular
schedules after a significant COVID-related slowdown in
April-May, it said.
    The logistics challenges have slowed inventory turnover and
inflated selling costs for Polymetal, the miner said, adding it
expected the gap between its production and sales to peak in
September.
    A strong rouble, which is near a seven-year high versus the
U.S. dollar - following capital controls and a sharp drop in
imports of goods - and logistical challenges have increased
Polymetal's capital expenditure, the miner said.   RU/RUB   
    Polymetal said it is on track to produce 1.7 million troy
ounces of gold equivalent, a mix of gold and other metals, in
2022.
    It does not sell any of its products to the Russian central
bank, directly or indirectly, it added.

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 (Reporting by Reuters;
Editing by David Goodman and Barbara Lewis)