Polymetal to pay dividend, maintains guidance

Russia focused gold miner Polymetal maintained its dividend payout and held full year production guidance despite the Covid-19 pandemic hammering global markets.

The company on Monday confirmed its 2020 production forecast of 1.6m ounces of gold equivalent as management acknowledged a material devaluation in the Russian Rouble and Kazakh Tenge since the beginning of the year.

Polymetal said it remained committed to its dividend policy and would stick with its final payout of 42 cents a share share or $197m.

First quarter gold equivalent production rose 5% on the back of a strong performance at the Kyzyl, Svetloye and Varvara mines in Russia and Kazakhstan more than offset planned grade declines at its Omolon and Voro operations.

Higher gold prices helped revenue increase 9% year-on-year to $494mln. However sales volumes fell 7% on an annual basis due to a coronavirus-related slowdown of concentrate shipments to China, although these had fully normalised since early March, Polymetal said.

“Although the Central Bank of Russia decided to temporarily suspend gold purchases, commercial banks in Russia continue to buy bullion,” Polymetal said.

“No negative signs of demand repercussions for domestic producers are present. The company also maintains the ability to directly export bullion abroad.”