Key goals — combining growth and dividends

  • Pay significant and sustainable dividends

Polymetal already stands out in the mining sector for its dividend policy and track record of substantial dividend payments. We want to continue delivering meaningful cash returns to our shareholders at any stage of the commodity cycle and our investment cycle through a combination of regular and special dividends.

  • Continue to grow our business

At the same time, we also want to grow production and, hence, free cash flow, through the addition of new high-grade, value-accretive assets.

Market trends
Global pricing,
while still volatile, showed signs of recovery.
Demand for gold fell to a seven-year low,
largely due to the decrease in jewellery demand and a decline in official sector purchases.
Year-on-year gold mine production was virtually unchanged and this is likely to continue in 2017, possibly marking the start of a sustained downward trend.
The economic situation in Russia improved during 2016 with oil prices recovering and a strengthened Rouble
but increased costs in US Dollar terms could have a negative impact. Kazakh gold mining is supported by the devaluation of the Kazakh tenge, while the Armenian dram is stable.

Strategic objectives


  • Deliver robust operating and financial performance at existing mines through cost control and reserve replacement
  • 1.27 Moz GE produced in 2016, 6% average annual increase over five years
  • Free cash flow of US$257 million
  • Successful Svetloye launch
  • Additional mineral resources: 3.7 GE Moz
  • Deliver medium-term growth through building and ramping up Kyzyl
  • 100% permitting milestone completed
  • Processing plant construction completed
  • Start of open-pit mining in May 2016
  • Approval and commencement of Amursk POX de-bottlenecking project
  • Build and advance long-term growth pipeline through opportunistic М&A and greenfield exploration
  • Acquisition of Kapan (Armenia)
  • Acquisition of Komar (Varvara hub, Kazakhstan)
  • Nezhda (Yakutia, Russia)
  • Establishment of maiden PGM resource at Viksha (Karelia, Russia)
  • Acquisition of interest in Prognoz in early 2017 (Yakutia, Russia)
  • Maintain high standards of corporate governance and sustainable development
  • Full compliance with the provisions of UK Corporate Governance Code
  • Inclusion in sustainability indices FTSE4Good, Vigeo, STOXX
  • ESIA for Kyzyl completed
  • Became signatories to the International Cyanide Management Code