Polymetal International plc — M&A Activity 2020

Mar 26, 2020

News Details

UK Regulatory | 26 March 2020 08:00

Polymetal: Sopka assets sale

Polymetal International plc (POLY)

26-March-2020 / 10:00 MSK

Dissemination of a Regulatory Announcement, transmitted by EQS Group.

The issuer is solely responsible for the content of this announcement.

Release time	IMMEDIATE LSE, MOEX , AIX : POLY / ADR: AUCOY
Date	26 March 2020

Polymetal International plc

Sopka assets sale

Polymetal s old Sopka a s s ets for a total consideration of RUB 800 million payable in cash ( US$ 10 million) and 1% Net Smelter Return (NSR).

The a ssets sold have been ring-fenced into Irbychan Gold LLC ( “ IG “ ) , a separate legal entity established to warehouse non-core assets of the Omolon hub . These assets include low-grade ore stockpiles from Sopka, Daln e y e and Oroch deposits a s well as mining and exploration licenses for Sopka, Dalneye, and Irbychan deposits . Mining at the properties ceased in 2018. All of the remaining high-grade ore has been trucked to Kubaka mill for subsequent processing.

Polymetal sold IG to a n unrelated Russian private mining company . The transaction consideration comprises of RUB 800 million fixed upfront cash payment ( US$ 10 million at the RUB/USD exchange rate as of the date o f closing ) and 1% annual NSR payable if gold price exceeds US$ 1,500/oz . The r oyalty proceeds are cap ped at US$ 50 million in rouble equivalent . Additionally, if average gold price in 2022 exceeds $1,600/oz, the buyer will be required to compensate any positive FX difference between the USD value s of rouble fixed cash payment made (RUB 800 million) as at 31 December 2022 and as at 3 0 January 2020.

IG was classified as an asset held for sale in FY 2019 financial statements and the Company reco gnised a US$ 28 million write-down in its consolidated income statement. The fair value of the asset was estimated at US$ 13 million (RUB 800 million at the RUB/USD exchange rate as of 31 December 2019).

About Polymetal

Polymetal International (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries – “Polymetal”, the “Company”, or the “Group”) is a top-20 global gold producer and a top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.

Enquiries

#### Media		#### Investor Relations
FTI Consulting Leonid Fink Viktor Pomichal	+44 20 3727 1000	Polymetal Evgeny Monakhov Timofey Kulakov Kirill Kuznetsov	ir@polymetalinternational.com +44 20 7887 1475 (UK) +7 812 334 3666 (Russia)
#### Joint Corporate Brokers
Morgan Stanley & Co. International plc Andrew Foster Richard Brown Panmure Gordon James Stearns	+44 20 7425 8000 +44 20 7886 2500	RBC Europe Limited Marcus Jackson Jamil Miah	+44 20 7653 4000

F orward-looking statements

T his release may include statements that are, or may be deemed to be, “forward-looking statements”. T hese forward-looking statements speak only as at the date of this release. T hese forward-looking statements can be identified by the use of forward-looking terminology, including the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “should” or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. T hese forward-looking statements all include matters that are not historical facts. B y their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company’s control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. S uch forward-looking statements are based on numerous assumptions regarding the company’s present and future business strategies and the environment in which the company will operate in the future. F orward-looking statements are not guarantees of future performance. T here are many factors that could cause the company’s actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. T he company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based .

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ISIN:	JE00B6T5S470
Category Code:	DIS
TIDM:	POLY
Sequence No.:	54681
EQS News ID:	1007181

End of Announcement	EQS News Service