Polymetal: Sopka assets sale

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. 
 
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 
 
FTI          [phone]  Polymetal [e-mail] 
Consulting   1000 
 
                          Evgeny    [phone] (UK) 
Leonid Fink               Monakhov 
 
Viktor                    Timofey 
Pomichal                  Kulakov 
 
                                    [phone] (Russia) 
 
                          Kirill 
                          Kuznetsov 
 
Joint Corporate Brokers 
 
Morgan       [phone]  RBC       [phone] 
Stanley &    8000         Europe 
Co.                       Limited 
Internationa 
l plc 
 
                          Marcus 
                          Jackson 
Andrew 
Foster 
 
                          Jamil 
                          Miah 
Richard 
Brown 
 
             [phone] 
             2500 
Panmure 
Gordon 
 
James 
Stearns 
 
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. 
 
ISIN:          JE00B6T5S470 
Category Code: DIS 
TIDM:          POLY 
Sequence No.:  54681 
EQS News ID:   1007181 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

March 26, 2020 03:01 ET (07:01 GMT)