Polymetal suspends capex forecasts, 'appalled' by Ukraine invasion

2nd Mar 2022 07:44

(Sharecast News) - Russian gold and silver miner Polymetal suspended cost and capital expenditure guidance for the current year as it said it was "appalled" by the invasion of Ukraine.

The company on Wednesday maintained its production forecast of 1.7 million ounces of gold equivalent, which is a mix of gold and other metals.

Annual net earnings fell 15% to $904m, while revenue rose by 1% to $2.9bn. A final dividend of $0.52 a share was declared. Adjusted core earnings fell 12% to $1.46bn, mainly driven by higher costs against the backdrop of relatively stable sales volumes and revenue.

Polymetal shares have slumped 70% since Russia's unprovoked attack on its neighbour. One of its largest shareholders, Norway's sovereign wealth fund, has said it will dump the stock in line with international sanctions.

On Tuesday private equity outfit Blackrock doubled its stake in the Polymetal to 10%.

Russia's central bank resumed gold purchases on the domestic market on Monday to bolster financial stability in the face of Western sanctions.

"We are shocked and appalled by the events going on in Ukraine. The conflict in Ukraine and related economic and political developments are likely to require a lot of management efforts to maintain company performance," said chief executive Vitaly Nesis.

"However, despite a wide range of uncertainties we will be working under in 2022, it is our current intention to operate as normally as possible," he added.