London-listed miner Polymetal is contemplating promoting its Russian belongings because it seeks to win again buyers who dumped its shares following the invasion of Ukraine.
The gold and silver producer stated on Tuesday it had appointed advisers and arrange a committee of impartial administrators to guage the potential disposal.
By specializing in its belongings in Kazakhstan, the corporate hopes to win again its place in broadly adopted FTSE indices and put itself on the radar of institutional buyers who’ve shunned firms with important publicity to Russia.
Mines owned by Polymetal in Kazakhstan at present produce over 500,000 ounces of gold per 12 months and recorded gross sales of virtually $1bn in 2021.
“The primary objective of the potential transaction is to restore shareholder value by seeking to allow the market to appropriately value the company’s Kazakhstani assets and de-risk its ongoing operations,” the corporate stated in a press release.
Shares in Polymetal rose 30 per cent to 234p on information of the potential sale however are nonetheless down greater than 80 per cent this 12 months.
While the corporate has not been positioned beneath UK, US or EU sanctions, it has suffered an exodus of shareholders, together with Norway’s sovereign wealth fund, since Russia’s invasion of Ukraine.
Polymetal’s greatest shareholder is an organization linked to its founder, Russian businessman Alexander Nesis. While the miner produces most of its gold in Russia, its fundamental holding firm is integrated in Cyprus.
That firm is in flip owned by an entity domiciled in Jersey, which is listed on the London Stock Exchange.
Source: www.ft.com