PolymetalPOLY918,70
13 April gold mining company Polymetal International reported, that the Board of Directors no longer considers it possible to recommend the payment of the final dividend for 2021. The decision on the payment of the dividend will be postponed to August 2022, along with the decision on the payment of interim dividends for 2022.
The final dividends for 2021 had to be approved at the annual general meeting of shareholders 25 April 2022. In March, the board of directors proposed to pay 0,52 $ per share.
Here's how the board of directors justified the decision to postpone the issue of dividend payments:
- Uncertainty about the availability of funding has increased due to sanctions, imposed on the banking sector and the Russian economy.
- Increased need for working capital due to liquidity and supply chain constraints.
- There are risks to the financial position of Polymetal, caused by reduced availability of loans with a significantly increased borrowing rate.
Polymetal Chairman of the Board of Directors Riccardo Orcel said, that the decision to pay dividends should be deferred, to support the current liquidity and stability of the business.
“We will continue to monitor the operational situation, financing conditions and legislation and we hope, that the situation will stabilize over time, which will give us the opportunity to return to the previous dividend policy.”, Riccardo Orcel commented on the situation.
30 March, the company announced, that the sanctions, announced since 9 March to 30 Martha, had no material impact on Polymetal's operations. But the company noted difficulties with the shipment of gold and silver concentrate from Russia to Kazakhstan and East Asia due to a change in contractors, providing transport and logistics services. This could lead to higher costs. The company also reviewed schedule and the budget of independent development projects.
Polymetal is not the first company from Russia or with the main part of the business in the Russian Federation, postponed the decision on dividends for the last time or decided not to pay them. The main reason for such decisions is the desire to maintain liquidity and ensure the financial stability of the business..
