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Polymetal International plc (POLY)
Polymetal: Sopka assets sale
26-March-2020 / 10:00 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 26 March 2020
Polymetal International plc
Sopka assets sale
Polymetal sold Sopka assets for a total consideration of RUB 800 million
payable in cash (US$ 10 million) and 1% Net Smelter Return (NSR).
The assets sold have been ring-fenced into Irbychan Gold LLC ("IG"), a
separate legal entity established to warehouse non-core assets of the
Omolon hub. These assets include low-grade ore stockpiles from Sopka,
Dalneye and Oroch deposits as well as mining and exploration licenses for
Sopka, Dalneye, and Irbychan deposits. Mining at the properties ceased in
2018. All of the remaining high-grade ore has been trucked to Kubaka mill
for subsequent processing.
Polymetal sold IG to an unrelated Russian private mining company. The
transaction consideration comprises of RUB 800 million fixed upfront cash
payment (US$ 10 million at the RUB/USD exchange rate as of the date of
closing) and 1% annual NSR payable if gold price exceeds US$ 1,500/oz. The
royalty proceeds are capped at US$ 50 million in rouble equivalent.
Additionally, if average gold price in 2022 exceeds $1,600/oz, the buyer
will be required to compensate any positive FX difference between the USD
values of rouble fixed cash payment made (RUB 800 million) as at 31
December 2022 and as at 30 January 2020.
IG was classified as an asset held for sale in FY 2019 financial
statements and the Company recognised a US$ 28 million write-down in its
consolidated income statement. The fair value of the asset was estimated
at US$ 13 million (RUB 800 million at the RUB/USD exchange rate as of 31
December 2019).
About Polymetal
Polymetal International (LSE, MOEX: POLY, ADR: AUCOY) (together with its
subsidiaries - "Polymetal", the "Company", or the "Group") is a top-20
global gold producer and a 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
1 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
Morgan Stanley & Co. 7425
International plc 8000
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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ISIN: JE00B6T5S470
Category Code: DIS
TIDM: POLY
Sequence No.: 54681
EQS News ID: 1007181
End of Announcement EQS News Service
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References
Visible links
1. mailto:ir@polymetalinternational.com
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