Release time	IMMEDIATE                                                         LSE, MOEX, AIX: POLY / ADR: AUCOY
Date	26 August 2020

 

 

Polymetal International plc

Interim dividend declaration of US$ 0.40 per share and approval of revised dividend policy

Polymetal announces that on 25 August 2020 the Board of Directors of the Company resolved to pay an interim dividend of US$ 0.40 per share for the six months ended 30 June 2020 and approved a revised dividend policy aimed at increasing transparency to the market.

Dividend declaration

In accordance with the Company's Dividend Policy, the Directors of Polymetal have resolved to pay an interim dividend for the six months ended 30 June 2020 of US$ 0.40 per share (1H 2019: US$ 0.20) or approximately US$ 189 million in total, representing 50% of the Group's underlying net income for 1H 2020, while staying significantly below the hard ceiling of Net debt/Adjusted EBITDA ratio of less than 2.5x.

This brings the total dividend declared in 2020 to US$ 1.02 per share, or US$ 481 million in aggregate, and the dividend yield to 5.4% based on the average year-to-date share price.

The dividend will be paid on 25 September 2020 in US Dollars, with an option for shareholders to elect to receive the dividend in pounds sterling or Euro. Such an election should be made no later than 7 September 2020. Payments in pounds sterling and Euro will be based on the USD/GBP and USD/EUR exchange rates determined by the Company on 10 September 2020 and announced immediately thereafter.

Details

EX DIV DATE:              03 September 2020

RECORD DATE:              04 September 2020

LAST DATE FOR CURRENCY ELECTION:  07 September 2020

PAYMENT DATE:                                             25 September 2020

The Company's issued share capital comprises 471,804,467 ordinary shares.

Revised dividend policy

With a view to increasing transparency in dividend decision making process, adding predictability into capital allocation approach while aiming to maintain an above sector-average dividend yield, the Board has approved an amendment to the Company's dividend policy, which replaces special dividend with a modified policy for final dividend payment. As a result, the revised dividend policy is as follows:

• Minimum final dividend of 50% of Underlying Net Income for 2H (subject to absolute Net debt/Adjusted EBITDA ceiling of 2.5x).
• In addition, the Board will now have discretion to increase the final dividend amount to a maximum annual payout of 100% of Free Cash Flow (provided that it is greater than 50% of Underlying Net Income). In making this decision, the Board will consider, among other factors, the macroeconomic outlook, debt position and future investment requirements of the Group.
• Interim dividend will remain at 50% of Underlying Net Income for 1H (subject to absolute Net debt/Adjusted EBITDA ceiling of 2.5x).

With this amendment, starting from 2021, Polymetal will pay dividends twice a year on a semi-annual basis.

"Our updated divided policy responds to the market's request for higher transparency", said Maxim Nazimok, CFO of Polymetal. "We remain committed to providing superior sustainable dividends and returning cash flows to our shareholders".

 

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 Consulting Leonid Fink Viktor Pomichal	+44 20 3727 1000	Polymetal Evgeny Monakhov Timofey Kulakov Kirill Kuznetsov	ir@polymetalinternational.com +44 20 7887 1475 (UK)   +7 812 334 3666 (Russia)
Joint Corporate Brokers
Morgan Stanley Andrew Foster Richard Brown Panmure Gordon James Stearns John Prior	+44 20 7425 8000       +44 20 7886 2500	RBC Europe Limited Marcus Jackson Jamil Miah	+44 20 7653 4000

 

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.