Polymetal Completes Sale of Russian Assets, Focuses on Kazakhstan Operations

13/03/2024

Image source: pixelied.com / pixabay.com

Polymetal (Polymetal International plc) announced on March 11 the completion of the sale of its Russian assets. Polymetal, the second-largest gold producer in Kazakhstan, disclosed this information, as reported by Orda.kz.

According to the company’s press service, Polymetal finalized the sale of 100% of the shares of JSC “Polymetal” (the holding company of the group’s Russian assets) to AO “Mangazeya Plus.” This move was aimed at mitigating risks. Vitaly Nesis, CEO of Polymetal, stated that the company intends to present a new strategy and capital allocation policy in May.

“After the completion of the deal, the group’s net cash position is approximately $130 million,” the Polymetal press release stated.

Polymetal Group is the second-largest gold producer in Kazakhstan, with two production assets in the country: Kyzyl (Bakyrchik deposit, Abai region) and Varvarinsky Hub (Varvarinsky and Komarovsky deposits, Kostanay region). The company also controls Irtysh GMK. Polymetal is registered with the MFCA with its head office in Astana, and its largest shareholder (23.9% stake) is Maaden International Investment from Oman.

The company’s shareholders approved the sale of Russian assets at a meeting on March 7. The deal aims to restore the shareholder value of the Polymetal group by reducing risks. Selling the Russian business will enable the company to focus on the development and exploration of Kazakh deposits.

Polymetal International plc was one of the companies that relocated to Kazakhstan from Russia. It was reported in May 2023 that the group was shifting its focus to the development of its Kazakh business and would be registered with the MFCA.

Source and Credit: orda.kz

Tags: asset sale, Gold Production, Kazakhstan, Polymetal, Russia