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PJSC Polyus (MOEX — PLZL) («Polyus», or the «Company») announces that, following a thorough assessment of the current market environment, the management intends to recommend that the Board of Directors (the «Board») suspend dividend payments until 2030, as until then the Company will focus on implementing large-scale investments, incl. growth projects.
The management’s recommendation is driven by such factors as high cost of debt financing, rising production costs, including those resulting from increased tax burden, declining gold prices amid uncertainty surrounding the monetary policies of major central banks, as well as the risk of delays to the implementation of investment projects.
Thus, the Company remains committed to a conservative approach to planning and forecasting in order to maintain a balance between its strong credit profile and the successful execution of its investment projects.
This decision is consistent with Polyus’ current dividend policy, under which the Board makes dividend recommendations to the General Meeting of Shareholders, taking into account the Company’s free cash flow, projected capital investment requirements, debt levels, and access to external financing.
Polyus
Polyus ranks sixth among global publicly traded gold mining companies by production volumes and is one of the largest gold miners in terms of attributable gold ore reserves. The Company has the lowest production costs among major global gold producers. Its principal operations are located in Siberia and the Russian Far East: Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).
Enquires:
Investor and Media contact
Capital Markets Department
+7 (495) 641 33 77
IR@polyus.com
Forward-looking statements
This announcement may contain «forward-looking statements» concerning Polyus and/or Polyus group. Generally, the words «will», «may», «should», «could», «would», «can», «continue», «opportunity», «believes», «expects», «intends», «anticipates», «estimates» or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus’ and/or Polyus group’s operations. Many of these risks and uncertainties relate to factors that are beyond Polyus’ and/or Polyus group’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.