Polymetal International to Sell Russian Business for $3.69 Billion, Shift Focus to Kazakhstan
By Elena Vardon
Polymetal International, a leading mining company, announced today the sale of its Russian business for a staggering $3.69 billion. The company plans to redirect its operations towards Kazakhstan, aiming to capitalize on new investment opportunities in the region.
The buyer of Polymetal’s business, JSC Polymetal, is Russian precious metals miner Mangazeya Mining. The deal, set to close at the end of March pending regulatory and shareholder approvals, is expected to bring in net after-tax cash proceeds of $300 million.
Polymetal intends to use the cash proceeds to fund its Ertis POX development project in Kazakhstan, which is geared towards improving the company’s liquidity profile. This strategic move will allow the group to de-risk its business, ensuring stable cash flows in the future.
Vitaly Nesis, CEO of Polymetal International, expressed his confidence in the divestment, stating, “The completion of the divestment will allow the group to de-risk the company’s business, deliver stable cash flows and pursue new investment opportunities. The board recommends shareholders to vote for the proposed resolution.”
With the anticipated sale, Polymetal International aims to strengthen its position in Kazakhstan and tap into the country’s thriving mining industry. The company’s refocus on new investment opportunities in Kazakhstan highlights its ambitious growth plans and commitment to maintaining a strong liquidity profile.
For further information, please contact Elena Vardon at elena.vardon@wsj.com.
Analyst comment
Positive news. The sale of Polymetal International’s Russian business for $3.69 billion will bring in net after-tax cash proceeds of $300 million. The company plans to use the funds to invest in its Ertis POX development project in Kazakhstan, aiming to strengthen its position in the country’s mining industry. This strategic move will de-risk the company’s business and ensure stable cash flows in the future, indicating ambitious growth plans and a strong liquidity profile.
