Special dividend and approval of the Kyzyl project

RNS Number : 8221H

Polymetal International PLC

03 December 2015

 



Release time	IMMEDIATE
Date	3 December 2015

Polymetal International plc

Board approves special dividend of US$0.30 per share and Kyzyl gold project construction decision

                                                                                                  

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to announce that on 2 December 2015 the Board of Directors of the Company approved a special dividend of US$0.30 per share for the year ending 31 December 2015 and made a positive decision to proceed with the construction and development of the Kyzyl gold project.

Dividend declaration

In accordance with the Company's dividend policy, the Directors of Polymetal, having considered the performance of the Group during the year to date, available free cash flows and future investment requirements, have resolved to pay a special dividend of US$0.30 per ordinary share, representing approximately US$127 million. This brings total dividends declared for this year to US$0.38 per share (2014: US$0.41, 2013: US$0.09, 2012: US$0.81, 2011: US$0.20) or US$161 million and an annual dividend yield to 4.6%¹.

This is the third special cash dividend in the Company's history, which follows special dividends paid in December 2012 and January 2014 of US$0.5 per share and US$0.2 per share, or approximately US$191 million and US$84 million, respectively.

The special dividend will be paid on 24 December 2015 in US Dollars, with an option for shareholders to elect to receive the dividend in pounds sterling. Such election should be made not later than 14 December 2015. Payments in pounds sterling will be based on the US$/GBP exchange rate determined by the Company on 15 December 2015 and announced immediately thereafter.

EX DIV DATE:                                                10 December 2015

RECORD DATE:                                            11 December 2015

LAST DATE FOR CURRENCY ELECTION:      14 December 2015

PAYMENT DATE:                                          24 December 2015

The Company's issued share capital includes 424,650,138 ordinary shares.

"A substantial special dividend for 2015 underscores Polymetal's ability to generate cash and return it to shareholders through the commodity cycle while pursuing high-quality development projects such as Kyzyl", said Vitaly Nesis, Group CEO.

Kyzyl gold project

The Board reviewed the results of the project feasibility study audited by Roscoe Postle Associates Inc and has made a positive decision to proceed with the Kyzyl construction and development.

Regular dividend policy

The Company's dividend policy remains unchanged. Target payout ratio is 30% of underlying net earnings (net earnings adjusted for non-cash foreign gains/losses and impairment charges), provided that Net debt / adjusted EBITDA is below 1.75x. The Board has the full discretion to act flexibly with regards to shareholder dividends should the self-imposed leverage covenant of 1.75x Net debt / adjusted EBITDA be exceeded.

The amount of the final dividend for the year will be reviewed by the Board in due course in accordance with the dividend policy and recommended to shareholders for their approval at the Annual General Meeting in 2016.

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[1] Include interim dividend of US$0.08 per share for 1H 2015 declared on 25 August 2015, and the special dividend of US$0.30 per share declared on 3 December 2015. Based on average share price for the eleven months of 2015 (US$ 8.3 per share).

Hedging policy

The Board reviewed the Company's hedging policy and approved the continued application of the existing no-hedge approach going forward.

Enquiries

Media		Investor Relations
Instinctif Partners David Simonson Saule Jandossova	[phone]	Polymetal Maxim Nazimok Evgenia Onuschenko Elena Revenko	[e-mail] [phone] (Russia) [phone] (UK)
Joint Corporate Brokers
Morgan Stanley Sam McLennan	[phone]	RBC Europe Limited Tristan Lovegrove Jonny Hardy	[phone]

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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