polymetallic cut adj. profit by 52%, will refuse to pay dividends for PLN 0.22

MOSCOW, March 16 (Reuters) – Russian precious metals maker Polymetal slashed its adjusted profit by 52% in 2022 by proposing no dividend for last year.

Polymetal reported that 2022 revenue fell 3% to $2.801 billion as a result of lower average realized gold and silver prices and lower gold sales.

Adjusted EBITDA fell 31% year-on-year to $1 billion as a result of rising costs and falling metal prices.

Adjusted net income fell 52% to $440 million, and following a decline in EBITDA and recognition of non-cash impairment charges, the company recorded a net loss of $288 million in 2022 compared to a profit of $904 million in 2021.

Polymetal’s board of directors has decided not to recommend a dividend payment for 2022 “in order to maintain the strategic and operational flexibility of the company in a highly volatile and challenging environment.”

The company noted that it took into account the leverage level of 2.35x, which is well above the target of 1.5x, as well as the significant impact of external factors.

Polymetal confirmed its current 2023 production target of 1.7 million GE ounces, expects 2023 capital expenditures of $700-750 million, total cash costs $1,300-1,400/oz.

“The sanctions imposed on Russia have had a huge impact on inflation, supply chains and sales channels, causing significant increases in costs and working capital, resulting in a sharp decline in cash flow. However, Polymetal entered early 2023 on a solid footing and expects cash flow to recover as well as net debt reduction over the course of the year,” said Vitaly Nesis, CEO of the company, quoted in the release. (Anastasia Lyrchikova)