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Polymetal mulls Kazakh listing to ease pressure on assets

By Frank Prenesti

Date: Wednesday 25 Jan 2023

Polymetal mulls Kazakh listing to ease pressure on assets

(Sharecast News) - Russia-focused gold and silver miner Polymetal said it was considering a moving its domicile to Kazakhstan from Jersey as it sought to find a jurisdiction deemed to be "friendly" by Moscow.
Polymetal said a re-domiciliation into Kazakhstan's Astana International Financial Centre (AIFC) was its preferred option, tgiven its "significant operations and presence in the region", along with the AIFC legal system and tax regime.

It added that if it moved to the AIFC, the Company's primary listing may move to the Astana International Exchange, but stressed no decision had been taken. The company has been caught in the crossfire of sanctions against Russia in retaliation for its unprovoked war against Ukraine.

A move to Kazakhstan would allow Polymetal to split its Kazakh and Russian mines into separate entities. It is presently barred by Moscow from selling assets in what the Kremlin considers to be a hostile domicile.

The company on Wednesday also said 2022 gold production had met expectations, but warned production in 2023 would be flat, with higher costs.



Polymetal's gold-equivalent production grew 2% last year to 1.71 million ounces, in-line with original production guidance of 1.70 million ounces.

Revenue fell 3% to $2.80bn, while cash costs were forecast to be within original guidance of $900-$1,000 per gold-equivalent ounce.

Current-year production would be 1.7 million gold equivalent ounces, and total cash costs would rise slightly to $950-$1,000 an ounce, reflecting domestic inflation, a stronger rouble, and royalty increase in Kazakhstan.

Reporting by Frank Prenesti for Sharecast.com

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