Gold miner Polymetal International has published its preliminary results for 2023, reporting an increase in revenue across its operations, but it will not pay dividends following the divestment of its Russian assets due to fear of Western sanctions.
In 2023, Polymetal's revenue increased by 8% year-on-year to $3,03 billion, of which $893 million (30%) was generated from operations in Kazakhstan and $2.13 billion (70%) from operations in the Russian Federation. In early March this year, the company has sold its assets in Russia to Mangazeya Plus JSC for $3.69 billion in a move to dodge the looming Western sanctions on its main business. In 2023, the company also moved its headquarters to Kazakhstan.
Average realised gold price increased by 9% while silver price increased by 4%. Gold equivalent production was unchanged at 1.71 million ounces. Total cash costs amounted to $861 per gold equivalent ounce, down 9% year on year on the back of a weaker ruble, but offset by a planned grade decline in Kazakhstan.
Polymetal will propose no dividend for the full year 2023. Following the recent completion of the divestment of the Russian business, the board will actively reconsider the dividend policy and intend to share an update in May this year.
"In 2023, Polymetal managed to stay profitable and reduce leverage despite persistent geopolitical headwinds," said Group CEO Vitaly Nesis.
"After the sale of the Russian assets is completed, the company will pursue long-term growth while ensuring long-term free cash flow potential of the existing assets in Kazakhstan."
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
