Proactiveinvestors USA & Canada Polymetal International Proactiveinvestors USA & Canada Polymetal International RSS feed en Sat, 20 Apr 2019 07:11:37 -0400 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Citi says time to stop selling Polymetal shares ]]> It is time to stop selling Russian precious metal miner Polymetal (LON:POLY), according to Citi, which has upgraded the stock to neutral from sell.

Given that the share price had fallen down to Citi’s target and the miner’s third quarter results were better than expected, the investment bank’s rationale is pretty straightforward.

Citi analyst Jon Bergtheil highlights that both gold and silver production was better than the market had anticipated, whilst operationally there were positives too.

“In the third quarter, Polymetal was coming out of a challenging period … and its progress towards achieving design parameters has been faster than we expected,” he said in a note.

“The impact from the shipment and sales of Mayskoye-mine concentrate in the third quarter was also better than we expected.”

Citi now has Polymetal as ‘neutral’ and its would-be target price is 631p – which is just 9p above the current price of 622.50p.

Fri, 25 Oct 2013 12:05:00 -0400
<![CDATA[News - Citi downgrades Polymetal to sell ]]> A downgrade from broking behemoth Citigroup failed to take the shine off Polymetal (LON:POLY) shares on Friday.

The broker, which now rates the Russian gold producer a ‘sell’, made the move after a recent rally in the share price, which it believes is unwarranted.

The company’s first-half results saw the shares slide as they reflected the lower gold price environment of 2013.

It reported a net loss of US$255mln, missing analyst forecasts, with write-downs of US$305mln in the period.

“Polymetal’s share price has risen by 40% since June and we have found it increasingly difficult to justify the higher prices,” said analyst Jon Bergtheil.

As well as a move from ‘neutral’ to ‘sell’, he also drops his target price for the shares from £6.98 to £6.12.

The shares added 2% to 744.8p on Friday.

Fri, 30 Aug 2013 09:44:00 -0400
<![CDATA[News - Polymetal warns of write-downs despite production record ]]> Polymetal (LON:POLY) hit a production record in its latest quarter, but cautioned weak gold and silver prices will mean up to US$340mln of impairment charges.

The Russian miner produced 323,000oz of gold equivalent in the three months to June, a 37% increase on the previous quarter and 9% better year-on-year.

Strong performances from the Dukat hub of mines, the Albazino concentrator and POX (pressure oxidation) facility at Amursk boosted output.

Gold production jumped 23% in the quarter to 190,000 ounces and was 22% higher in the first six months of 2013.

Polymetal, which is 17.7% owned by billionaire Alexander Nesis, added it is currently "testing its assets for impairment at lower commodity prices" and expects to take a charge of between US$280 and US$340mln in the half year figures.

Revenues in the latest quarter rose by 8% to US$399 mln, but were 3% lower over the half year at US$740mln.

Guidance for the full year was maintained at 1.2 mln oz gold equivalent, boosted by sales of Mayskoye concentrate and ongoing improvements at the Amursk POX.

Broker Canaccord Genuity estimates average all-in costs this will  be US$1180/oz compared to US$1270/oz for the average of its peers.

With an improving grade profile, Polymetal is better placed than its peers to weather the current low gold price environment, adds the broker.

Polymetal is not along in writing down the value of its assets.

Some US$15bln has been written off the value of their assets by miners to precious metals sector due the 20% slump in the price of gold.

Mon, 29 Jul 2013 14:23:00 -0400
<![CDATA[News - Polymetal reports impressive grades at Maminskoye ]]> Polymetal’s (LON:POLY) impressive drilling results from recently acquired Maminskoye have dramatically improved the gold project’s scope and potential, according to brokers.

The Russian miner said gold grades from the latest step-pit drill programme had been consistently high across good widths and at a range of depths.

Best intersections included 40 metres (m) at 8.3 grams per tonne, or g/t (from 177m depth), 8m at 6.6g/t (from 18m), and 5m at 10g/t (from 33m).

Broker Canaccord described the results “as among the most impressive gold intercepts we have seen reported in the last 12 months.”

The drill results were likened to the high grade Albazino (200,000 ounces a year) mine by the company and may transform the original plans for its development, said Canaccord.

Polymetal paid US$77mln for Maminskoye in February. The JORC reserve is 730,000 ounces at an average grade of 1.9g/t.

According to Canaccord, Polymetal had intended to develop a 2-3million tonnes per annum (Mtpa) open pit and heap leach operation producing 80-120,000 ounces pa.

The new intersections revealed on Thursday, however, were at depths suitable for open pit mining but are likely to expand the reserves to a level that supports a stand-alone CIP mill versus the previous heap leach plan.

Canaccord has a 920p price target and buy rating for Polymetal shares, which it says have been held back recently by the prospect of it leaving the FTSE 100 in the next review.

Shares rose 3.4p today to 680p.

Thu, 06 Jun 2013 12:29:00 -0400
<![CDATA[News - Polyus Gold stake changes hands for US$3.6bn ]]>  

Polyus Gold (LON:PGIL), Russia’s largest gold miner, has seen a change of control after Onexim, the vehicle of Russian billionaire Mikhail Prokhorov, sold its entire 37.8% stake.

Two other Russian billionaires, Zelimkhan Mutsoyev and Gavril Yushvaev, paid Onexim US$3.61bn for its shares after the UK Takeover Panel gave its approval.

The Panel had considered whether the two buyers were acting in concert and if purchasing Onexim’s stake should trigger a mandatory offer for the company.

Lizarazu, Mutsoyev’s vehicle, paid US$1.77bn for an 18.5% stake, while Yushvaev’s Receza bought 19.28% for US$1.85mln.

Onexim put its stake up for sale in September.

Suleiman Kerimov owns 40.2% of Polyus and the sale by Onexim is being tipped by analysts as a catalyst for a merger of the company with London-listed Polymetal (LON:POLY), a company that also has strong links to Kerimov.

Polymetal is another major Russian gold and silver producer and also has assets in Kazakhstan.

Shares in Polyus rose by 1.8% to 223p, while Polymetal gained 2.8% to 972p.


Fri, 22 Feb 2013 09:22:00 -0500
<![CDATA[News - JSC Polymetal to acquire 1.4Moz Svetloye gold deposit from Fortress Minerals with superior US$9.25m offer ]]> JSC Polymetal (LON:PMTL, MICEX, RTS: PMTL) looks set to acquire the mining license for the Svetloye gold deposit in the Russian Far East with a US$9.25m cash deal with Fortress Minerals Corp (TSX-V:FST). The JSC proposal was accepted by Fortress as a superior proposal to a pre-existing arrangement with MacRitchie Metals Pte Ltd.

"Svetloye represents a unique opportunity to broaden our late-stage exploration effort in the region and potentially add several years of mine life for Khakanja," Polymetal chief executive Vitaly Nesis commented.

At Svetloye, in April 2009, Fortress reported a NI43-101 resource estimate of 20.1 million tonnes grading 2.2 grams per tonne (g/t) and containing 1.4 million ounces (Moz) of gold.

The Svetloye deposit is located in the Russian Far East, in the Khabarovsk Territory, 220km southwest of Okhotsk, the access port for Polymetal's Khakanja mine, and approximately the same distance from Khakanja itself. Polymetal believes trucking the high-grade ore from Svetloye to Khakanja for processing is feasible, a view based on positive experience at Yurievskoe.

Polymetal is a Russian-based gold and silver miner, with operations and development projects in Russia and Kazakhstan. The company produced 0.6Moz of gold equivalent ounces in 2009, and it is aims double total production by 2012, through the commissioning of new projects, which are now under construction.

“A key element of Polymetal's strategy is creation of processing hubs with the goal to ensure the most efficient and responsible utilization of financial and human capital by treating ores and concentrates from various sources at centralized locations”, Polymetal stated.

Fri, 25 Jun 2010 15:18:00 -0400