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Polymetal International PLC said on Wednesday its operations in Russia and Kazakhstan continued undisputed despite of the impact of sanctions against Russia on its business.
Shares in Polymetal were up 14% at 386.80 pence on Wednesday morning in London. The stock remains down 70% so far in 2020, however.
The St Petersburg-based miner focused on Russia and Kazakhstan said sanctions announced between March 9 and 30 have had no material impact on its business.
Polymetal said it believes that targeted sanctions on the company remain ‘unlikely, but are not impossible’. It added that contingency planning has been initiated to maintain business continuity.
Sales of gold and silver concentrate from have continued as normal to East Asia and Kazakhstan. Though Polymetal notes shipments have been temporarily impact by change in freight and logistic services providers which it added would likely result in higher costs.
Sales of gold bullion in Russia have been restored to new counterparties, Polymetal continued. These sales are on consistent terms with those received earlier, it added.
Domestic demand for gold has been boosted by local retail investment, the company explained. It added that the Central Bank of Russia is buying gold from commercial banks at a fixed price of 5,000₽ per gram, around $1,800 per ounce though Polymetal assured this is not expected to affect the sales price.
The international spot gold stood at $1,924.08 an ounce early Wednesday.
Sales of bullion and concentrate from Kazakhstan have also continued as usual.
Polymetal said it has around $400 million in cash and cash equivalents in non-sanctioned financial institutions as well as $500 million of undrawn credit from non-sanctioned institutions.
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