Strategy and Business Model
Polymetal International’s main objective is to generate superior sustainable returns for shareholders whilst maintaining high standards of corporate citizenship.
Today’s precious metals markets are highly competitive; no single producer has a significant influence over selling prices. On the other hand, the world’s gold and silver resources are characterised by declining grades, with increased complexity in mining and processing of ores as the higher quality resources are becoming depleted worldwide. Success in this environment therefore depends to a large extent on our ability to increase the resource base and production volumes, whilst simultaneously maintaining tight control of capital spending and operating costs.
Our business model
We have developed a business model that enables us to achieve our strategic objectives, and which has demonstrated its effectiveness as Polymetal has evolved. We are strongly committed to this model, and we are confident that it will enable us to continue delivering growth and value.
Our distinctive business model is based on four pillars:
- Development and operation of relatively high-grade assets, with a preference for open-pit mining; unless higher grades justify underground development.
- Investment in in-house exploration. This will allow us to ensure a cost-effective increase in our reserve base which is, in turn, the key source of long-term organic growth.
- Implementation of a hub-based processing system, allowing us to minimise processing and logistics costs and achieve economies of scale through creation of centralised facilities for the treatment of materials from different sources.
- Maintenance of exemplary corporate governance to ensure proper management of the Company, accountability to shareholders and attention to other stakeholders’ interests