COVID-19 update

Health and safety of our employees and other people is our top priority therefore the company took a number of actions to minimize possible COVID-19 impact.

Health and safety

Strict precautionary procedures are in place at all production sites

  • Daily temperature checks;
  • Regular medical surveillance;
  • Isolation of new shifts at remote sites for 14 days.

Off-site offices

  • Currently manned by skeleton crews tasked with minimum maintenance of essential information and financial systems;
  • Most of the work and communication is conducted remotely from home;
  • Personal meetings and business trips have been cancelled.

In addition

  • Polymetal has organised isolated accommodation for potential placement of patients with suspicion of COVID-19;
  • hygiene protection is enhanced in public spaces and control over disinfection and sterilisation measures is increased;
  • Adequate medical supplies are in place at all locations.
Acting in regions of operation
  • Polymetal has started to provide financial support for medical institutions;
  • The Company is purchasing mobile X-Ray and anesthetic-respiratory equipment, oxygen concentrators, ventilators and other medical supplies for Chukotka district hospital, Magadan regional hospital, medical facilities in Yakutsk, and 10 other municipal hospitals in Russia and 4 in Kazakhstan.
Business continuity

Production sites

  • Both Russia and Kazakhstan have imposed various self-isolation requirements that differ among regions. Continuous operations and strategic industrial companies (including Polymetal) are allowed to continue operating;
  • In both countries, Polymetal has had no interruptions either in production or supply chain. The vast majority of operating consumables and spares are sourced domestically and in China.
  • Due to the ban on international travel, the ability to bring employees across the border between Russia and Kazakhstan is at risk. Dukat is the most exposed operation, however, we have hired temporary employees for most positions. Hence, a significant impact on production is now unlikely even in the event of travel restrictions prolongation.
  • Domestic travelling of employees remains unaffected. Russian regions started lifting lockdown on some activities (differ by the region). Kazakhstan resumed limited air passenger traffic between regions starting from May 1st

Growth projects

  • At Nezhda, all critical equipment has been shipped by vendors. Installation support and start-up services can be performed by domestic crews or remotely.Project delay risks are thus minimal.
  • At POX-2, the autoclave vessel is ready to sail from the vendor’s site in Belgium. All suppliers have resumed industrial activities. However, potential re-imposition of restrictions on industrial activities may create problems.

Sales and refining activities remain unaffected

  • Although the Central Bank of Russia decided to temporarily suspend gold purchases, commercial banks in Russia continue to buy bullion. No negative signs of demand repercussions for Polymetal are present;
  • Refineries in Russia and Kazakhstan continue to operate normally;
  • Concentrate shipments to China by sea and by rail are back to regular schedule after temporary suspension of shipments in February.

The Company maintains the ability to directly export bullion abroad.

Liquidity and funding

In order to further mitigate potential risks, Polymetal has proactively secured medium-term (6 to 9 months) funding to establish a cash cushion for a potential liquidity gap.

  • As of 31 March 2020, the Company had $565 million of cash on its balance sheet;
  • Polymetal continue to maintain US$ 600+ million of available credit lines for any additional requirements.
Dividend payment

No impact on dividend in expected as there is no impact from COVID on liquidity and operations so far. A final dividend of US$ 0.42 per share, approved by AGM on 27 April 2020 will be paid on 29 May 2020.

While the selected annual report is being downloaded, we want to draw your attention to the Sustainability Report. It provides detailed information on ESG indicators.

While the selected files are being downloaded, we want to draw your attention to the reports on the sustainable development of the company. They provide detailed information on ESG indicators.

You can also download historical data on sustainable development.