POYYF - Polymetal scraps final dividend as it seeks to unblock shares frozen by sanctions

Russian gold and silver producer Polymetal ( OTCPK:POYYF ) ( OTCPK:AUCOY ) said Thursday it will cancel the final dividend for 2021 and recommended no interim dividend payment for 2022, sending its shares in London down 11%.

Polymetal ( OTCPK:POYYF ) has not been directly targeted by Western sanctions imposed on Russia because of the war in Ukraine, but it said future dividend payments will depend on its ability to unblock part the 22% of its shares frozen in the sanctions-hit Russian National Settlement Depository, as owners of the shares held through the country's domestic paying agent currently are unable to receive dividends.

The miner's H1 adjusted net earnings fell by more than half from the prior-year period to $203M as sales slumped, while it also raised its forecast for 2022 production costs.

Polymetal ( OTCPK:POYYF ) also said any potential business restructuring tp focus on its assets in Kazakhstan had been affected by Vladimir Putin's action to freeze sales of certain Russian assets including mining firms if they are controlled by residents of "unfriendly" countries; it said previously that it was considering a sale of its Russian assets while shifting its focus to Kazakhstan operations .

For further details see: