Polymetal Backs Away From 2011 Dividend Payment

The board of directors of Russian gold and silver producer Polymetal, has recommended its annual shareholder meeting, scheduled for June 21, vote not to pay dividends for 2011, the company said in a statement on Monday.

The company’s board of directors gave no explanations for the decision.

In late April 2012, the board of directors of Polymetal International, which unites the assets of Polymetal, proposed the payment of a final dividend of $0.20 per ordinary share for the year ended 31 December 2011, subject to shareholder approval at the annual general meeting.

Polymetal posted a 21 percent year-on-year increase in its 2011 IFRS net profit to $290 million.

That was below a consensus forecast of analysts polled by RIA Novosti who expected a profit of $412 million for the London-listed firm.

Polymetal has sold its Veduga gold deposit in the Krasnoyarsk Territory in the Russian Far East to Canada’s Polygon Gold for $20 million, the company said on Monday.

“Polymetal received…$20 million in cash and 750 ordinary Polygon shares resulting in an 81.8 percent equity ownership in Polygon,” the company said in a statement.

Polygon will operate as a standalone company with independent management, while Polymetal will provide technical and regulatory assistance to Polygon on an ongoing basis. Polymetal may eventually dilute its equity stake in Polygon, if external equity financing is raised.

“I am very pleased that Veduga, a non-core asset for Polymetal, has found a competent owner who is prepared to take this asset into production,” Polymetal CEO Vitaly Nesis said.


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