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
For the second year in a row, gold became one of the best performing assets.The gold price grew by 13.5% – its biggest annual gain since 2010 – and outperformed all major asset classes other than stocks.
However, gold demand remained under pressure in 2017, down 7%. The decline was driven by substantially lower retail investment demand and lagging ETFs. On the other hand, buying from the official sector recorded a substantial gain of 36% year-on-year.
Gold and silver mine output, on the other hand, continued to slow down due to substantial production losses seen in Indonesia and China.
For the Russian economy as a whole, 2017 proved to be a year of moderate improvement. The Russian Rouble strengthened, which had a negative impact on the mining sector, resulting in an increased dollar value of rouble-denominated operating costs across the board and lower Adjusted EBITDA margins.

Strategic objectives


  • Ensure robust operating and financial performance at existing mines
  • 1.43 Moz GE produced in 2017, 2% above original guidance
  • Adjusted EBITDA of US$745 million, almost flat year-on-year despite a stronger Russian Rouble
  • Free cash flow of US$143 million
  • Brownfield reserve additions: 1.4 Moz
  • Find more at Results centre

  • Deliver medium-term growth through building and ramping up Kyzyl


  • 48.5 Mt of stripping volumes
  • 100% completion of external infrastructure and open-pit construction
  • Completion of tailings storage and installation of major processing equipment
  • In June 2018 New Kyzyl mine started-up ahead of schedule and below budget
  • Explore Kyzyl project


  • Completion of construction, commissioning and launch of new desorption sites, completion of filtration sections of the leaching tails and the oxygen station No. 2
  • 100% completion of external infrastructure and open-pit construction
  • Explore Amursk POX project

  • M&A combined with own exploration efforts
  • Increase in mineral resources by 10% to 18.2 Moz of GE
  • Increase of average grade in mineral resources by 11% to 4.7 g/t of GE
  • Initial JORC-compliant reserve estimates for Kapan, Lichkvaz and Nezhda
  • Resource additions: 2.0 Moz
  • Take a look at Reserves and Resources

  • Maintain high standards of corporate governance and sustainable development
  • Full compliance with the provisions of the UK Corporate Governance Code
  • Top rating in environmental responsibility by WWF/UNDP
  • The first Russian company included into the Dow Jones Sustainability Emerging Markets Index (“DJSI”)
  • The highest score for corporate governance and anti-corruption by FTSE4Good
  • Start of comprehensive Board succession programme
  • Find more about Corporate governance and Sustainability performance