Polymetal has completed the divestment of its Russian business on 7 March 2024. Please see the relevant announcement at the link. Operating and financial results as well as other information on this website until 7 March 2024 represent the Group in its former organizational structure, i.e. including Russian business, unless otherwise stated.

11 May 2020

Polymetal announces that it has agreed to sell North Kaluga property for US$ 13.5 million in cash and debt assumption plus royalty, which together represents a total transaction value of approximately US$ 27 million.

“We continue to advance our non-core asset disposals. The North Kaluga deal brings us some cash and retains exposure to commodity prices”, said Vitaly Nesis, Group CEO of Polymetal.

Polymetal has entered into a legally binding agreement to sell North Kaluga to North Kaluga Mining Limited. The transaction consideration consists of a US$ 10.7 million fixed upfront cash payment, 5% NSR and 50% royalty on excess revenue. Excess revenue is defined as actual revenue less base revenue, where the latter is potential revenue calculated based on actual grades and the following metal prices: Cu = US$ 5,500/t, Zn = US$ 2,310/t, Au = US$ 1,650/oz, Ag = US$ 18.7/oz. The fair value of the royalties is estimated at US$ 13.5 million1 as of the date of the agreement. Both NSR and the excess revenue royalty are capped at US$ 300 million. The new owner will also repay all debt owed by the North Kaluga’s license holder to Polymetal as at transaction completion date (US$ 2.8 million as of the date of the agreement).

ABOUT NORTH KALUGA

North Kaluga is a polymetallic deposit located in the Sverdlovsk region of Russia. The property’s mineral resources comprise copper, gold, zinc and silver, with most of the value attributable to copper and gold.

JORC-compliant reserves for underground mining stand at 212 Koz of GE at 12.9 g/t as at 01.06.2018. The asset was marked as non-core due to its small size, short life-of-mine and lack of spare capacity at the future flotation circuit at Voro.

(1) The Company’s estimate at 15% discount rate.

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2019