Polymetal shares rise amid confirmation of plans to “move”

2023-07-10 08:21:25

Gold, Jul 10, 11:21 am

Polymetal shares rise amid confirmation of plans to “move”

One of the largest Russian gold miners confirmed plans to re-register the company from Jersey to Kazakhstan and clarified the schedule for the “move”. Shares reacted with growth

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Photo: Ilya Naimushin / RIA Novosti

Shares of the gold mining company Polymetal (Polymetal International) rose by 3.46% at the beginning of trading on the Moscow Exchange, to ₽577.4 per share. At 11:09 Moscow time, securities were up 2.7% and traded at the level of ₽573 per share.

Demand for paper increased after confirmation company plans to redomiciliate to the Astana International Financial Center (AIFC) in Kazakhstan. The company also confirmed that the redomiciliation will not be completed until the week of July 31, 2023 at the earliest.

The annual general meeting of shareholders is scheduled for July 25, 2023. Redomiciliation can only occur after the completion of the annual meeting, the company said.

The date for the suspension of the listing or trading of the company’s shares on the London Stock Exchange (LSE) is still not determined, the report said. The company’s shares will continue to trade on the LSE until further notice. However, any further announcement does not provide for the suspension of trading prior to the week commencing July 31, 2023. The delisting from the LSE must be approved by the shareholders. The decision on delisting will come into force no less than 20 business days after the relevant decision is made at the general meeting of Polymetal’s shareholders.

At the end of June, Polymetal announced a revision of the redomiciliation schedule to the Astana International Financial Center (“AIFC”) in Kazakhstan. The move was previously expected to complete on July 17, 2023. The miner admitted that he was not on schedule as a result of delays in the processes that redomiciliation depends on.

At the end of May, the shareholders of the gold miner approved the relocation of the company from the island of Jersey to Kazakhstan. The company previously reported that after the completion of the redomiciliation, it plans to request the suspension of trading in the company’s securities on the London Stock Exchange (LSE) and subsequently conduct a delisting in a proper manner. Upon completion of the redomiciliation, the main listing of Polymetal will move to the AIFC exchange – Astana International Exchange (AIX).

Shares of “Polymetal” fell amid the postponement of the “move” to Kazakhstan

Redomiciliation is a central theme for Polymetal’s quotes, analysts at BCS Mir Investments said. Like Polyus, Polymetal encountered sales problems in the second quarter of 2022, was included in the SDN sanctions list (only Russian assets), but coped with the difficulties, experts said. The redomiciliation of a company to the AIFC is a key condition for shareholders on the Moscow Exchange to receive dividends in the medium term.

A successful move and the start of dividend payments can become growth drivers for securities, according to BCS World of Investments. Obtaining an initial listing in the AIFC by mid-July and a corporate reorganization could make dividends a real factor for shareholders on the Moscow Exchange from the beginning of 2024, experts admitted. New projects aimed at increasing production volumes may also be a positive factor. In addition, maintaining or improving the cost position will allow the company to show production near the 2023 target of 1.7 million ounces in 2024-2025, experts said.

In addition, the Fed’s inability to contain inflation for an extended period of time and higher inflation expectations and longer-term real interest rates will mean higher gold prices, as well as higher free cash flow and company valuations. The target price of BCS Mir Investments for the securities of Polymetal is ₽760 per share over the next 12 months, the upside potential is about 36%.

Author: Marina Mazina.

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