POYYF - Russia's Polymetal shuns local sales in favor of exports; delays projects

Russian miner Polymetal International (OTCPK:POYYF) (OTCPK:AUCOY) said Monday it is avoiding selling to Russian banks as they will only buy at a discount, Bloomberg reports. While sanctions on state-run lenders have blcoked Polymetal's (OTCPK:POYYF) traditional sales routes, the company is able to sell to non-sanctioned banks, but those institutions are now only purchasing gold at a discount to international prices, pushing the company toward shipments abroad. Even though the discount is small, "our strategy is to sell as much as possible for export," CEO Vitaly Nesis said during the company's first earnings call since Russia invaded Ukraine, adding that sales in Kazakhstan, the miner's other main country of operations, are not affected. Polymetal (OTCPK:POYYF) said it would postpone several projects, as Western sanctions imposed on Russia caused "tremendous pressure" during Q1, although the company has not been directly targeted by the sanctions. The miner reported a 4% Y/Y increase in Q1 revenues

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Russia's Polymetal shuns local sales in favor of exports; delays projects