Preliminary results for the year ended 31 December 2022

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.

16 March 2023

Polymetal International plc (“Polymetal” or the “Company”) announces the Group's preliminary results for the year ended 31 December 2022.

“In 2022, the Company was subject to extraordinary and unprecedented external challenges. Despite these adverse circumstances, Polymetal managed to maintain operational stability and achieve excellent safety performance. Nonetheless, international sanctions against Russia have had a huge impact on domestic inflation, supply chains and sales channels. As a result, costs have risen and working capital requirements ballooned with cash flow plummeting. We start 2023 from a position of relative strength and expect the resumption of free cash flows and a reduction in net debt over the course of the coming year”, said Vitaly Nesis, Group CEO, commenting on the results.


  • In 2022, revenue decreased by 3%, totalling US$ 2,801 million (2021: US$ 2,890 million), of which US$ 933 million (33%) was generated from operations in Kazakhstan and US$ 1,868 million (67%) from operations in the Russian Federation. Average realised gold price decreased by 2% while silver price decreased by 12%, both almost tracking market dynamics. Gold equivalent (GE) production was 1,712 Koz, a 2% increase year-on-year (y-o-y). Gold sales decreased by 1% y-o-y to 1,376 Koz, while silver sales increased by 6% to 18.5 Moz. Disruption in sales channels resulted in a huge gap between production and sales in Q2-Q3 2022, but was largely eliminated in Q4 2022. The remaining gap is expected to close during the course of 1H 2023.

  • Group Total Cash Costs (TCC)1 for 2022 were US$ 942/GE oz and within the Group’s guidance of US$ 900-1,000/GE oz, although representing an increase of 29% y-o-y, which was predominantly due to double-digit domestic inflation and the appreciation of Rouble/USD exchange rate. Escalation of logistical costs and sharp increases in the price of consumables caused by the imposition of sanctions (explosives, equipment spares, cyanide) also impacted the Group’s TCC.

  • All-in Sustaining Cash Costs (AISC)1 amounted to US$ 1,344/GE oz, up 31% y-o-y, which was within the Group’s guidance of US$ 1,300-1,400/GE and also driven by the same factors as above.

  • Adjusted EBITDA1 was US$ 1,017 million, 31% lower than in 2021, as costs rose and metals prices declined. US$ 478 million (47%) of Group EBITDA originated in Kazakhstan and US$ 539 million (53%) in the Russian Federation. The Adjusted EBITDA margin decreased by 15 percentage points to 36% (2021: 51%).

  • Underlying net earnings2 were US$ 440 million (2021: US$ 913 million). As a result of a lower Group EBITDA and non-cash impairment charges (a post-tax amount of US$ 653 million), the Group recorded a net loss for the period of US$ 288 million in 2022, compared to profits of US$ 904 million in 2021.

  • Capital expenditure was US$ 794 million3, up 5% compared with US$ 759 million in 2021 and 2% above the guidance range of US$ 725-775 million, reflecting accelerated purchases and contractor advances for ongoing projects (most notably, Amursk POX-2), combined with inflationary and logistical pressures on imported equipment, materials and services.

  • Net operating cash inflow was US$ 206 million (2021: US$ 1,195 million), on the back of inventories build-up of US$ 473 million. This includes positive cash flow of US$ 337 million from operations in Kazakhstan and negative cash flow of US$ 131 million from operations in the Russian Federation. The Group reported negative free cash flow1 of US$ 445 million in 2022 (2021: positive US$ 418 million).

  • Net debt1 increased to US$ 2,393 million during the period (31 December 2021: US$ 1,647 million), representing 2.35x of the Adjusted EBITDA (2021: 1.13x). The increase in net debt was driven by the decline in profitability, the persistently high capital intensity of the business and a very significant expansion in working capital.

(1) The financial performance reported by the Group contains certain Alternative Performance Measures (APMs) disclosed to complement measures that are defined or specified under International Financial Reporting Standards (IFRS). For more information on the APMs used by the Group, including justification for their use, please refer to the “Alternative performance measures” section below.
(2) Adjusted for the after-tax amount of impairment charges, write-downs of metal inventory, foreign exchange gain and other change in fair value of contingent consideration.
(3) On a cash basis, representing cash outflow on purchases of property, plant and equipment in the consolidated statement of cash flows.


  • The Board has carefully evaluated the liquidity and solvency of the business in light of multiple external uncertainties. Taking into account the Group’s leverage (2.35x Net debt/EBITDA, materially above the level of 1.5x target leverage ratio and the significant level of uncertainty regarding external factors, the Board has decided not to propose any dividend for 2022 in order to allow the Group to maintain strategic and operating flexibility in a highly volatile and uncertain external environment.

Financial highlights1








Revenue, US$m




Total cash cost2, US$ /GE oz




All-in sustaining cash cost2, US$ /GE oz




Adjusted EBITDA2, US$m







Average realised gold price3, US$ /oz




Average realised silver price3, US$ /oz








Net (loss)/earnings, US$m




Underlying net earnings2, US$m




Return on assets (underlying)2, %




Return on equity (underlying)2, %








Basic (loss)/earnings per share, US$




Underlying EPS2, US$




Dividend declared during the period4, US$ /share




Dividend proposed for the period5, US$ /share








Net debt2, US$m




Net debt/Adjusted EBITDA








Net operating cash flow, US$m




Capital expenditure, US$m




Free cash flow before acquisitions/ disposals2, US$m




Free cash flow post-M&A, US$m




(1) Totals may not correspond to the sum of the separate figures due to rounding. % changes can be different from zero even when absolute amounts are unchanged because of rounding. Likewise, % changes can be equal to zero when absolute amounts differ due to the same reason. This note applies to all tables in this release.
(2) Defined in the “Alternative performance measures” section below.
(3) In accordance with IFRS, revenue is presented net of treatment charges which are subtracted in calculating the amount to be invoiced. Average realised prices are calculated as revenue divided by gold and silver volumes sold, excluding effect of treatment charges deductions from revenue.
(4) FY 2021: final dividend for FY 2020 paid in 2021 and interim dividend for the 1H 2021 paid in September 2021.
(5) FY 2021: interim and final dividend for FY2021.



  • No fatal accidents among the Group’s employees and contractors occurred in 2022. Lost time injury frequency rate (LTIFR) among the Company’s workforce for the full year decreased by 17% y-o-y to 0.10. Days lost due to work-related injuries (DIS) fell by 42% y-o-y to 877.

  • The Company’s FY 2022 GE production amounted to 1,712 Koz, a y-o-y increase of 2% and in line with the original production guidance of 1.7 Moz. The first full year of operations at Nezhda and initial production at Kutyn (Albazino hub) compensated for declining grades at mature assets.

  • Amursk POX-2 and other development projects progressed in line with schedules revised after the introduction of international sanctions against Russia in Q1 and Q2 2022.


  • Varvara Mine in Kazakhstan was certified for full compliance under the International Cyanide Management Code by the International Cyanide Management Institute (ICMI).

  • In 2022, Polymetal continued to receive external recognition of its ESG efforts with high ratings and scores by Sustainalytics, Vigeo Eiris and ISS ESG Corporate Rating.

  • In January 2023, the Group published its second green loan allocation report under the corporate green financing framework, which confirmed spending of US$ 125 million loan given by Société Générale for environmentally friendly projects at the Company’s sites. Our total green and sustainability-linked loan portfolio is now US$ 592 million, amounting to 20% of the total outstanding debt of the Group.

  • Greenhouse gas emissions intensity (scopes 1 and 2) was 15% lower in 2022 compared to 2019 (Scope 1 and 2), attributed to increasing our renewable electricity consumption (30% of total), as well as energy efficiency initiatives, such as improving heat utilization systems and the implementation of solar power generation.

  • In 2022, the share of water reused and recycled amounted to 91% of the total water consumption at our sites (compared to 90% in 2021). In 2022, fresh water intensity for ore processing1 decreased by 49% (as compared to the 2019 baseline), to 138 m3/1000 t of ore processed.

  • We continue to promote equal-opportunity culture through training and communications, empowering more women to take leadership roles: in 2022, the share of female participants of our Talent Pool development program increased to 35% (compared to 30% in 2021).

(1) Hereinafter this indicator excludes water used for non-technological purposes.

   2023 OUTLOOK

  • The Group reiterates its current production guidance of 1.7 Moz of GE for FY 2023. Production will be weighted towards 2H 2023 due to traditional seasonality at several production sites.

  • Polymetal expects its costs to be in the ranges of US$ 950-1,000/GE oz for TCC and US$ 1,300-1,400/GE oz for AISC1. A minor y-o-y increase is mostly due to expected domestic inflation and royalty increase in Kazakhstan.

  • Capital expenditures are expected to be in the range of US$ 700-750 million. Major investment projects include Amursk POX-2, Albazino power line, Voro flotation (completion expected Q2), Prognoz (completion expected Q4), and Mayskoye backfill plant.

(1) Based on 65 RUB/USD, 450 KZT/USD rates, 7% inflation in Russia and 9% in Kazakhstan.


  • The Group continues to evaluate all available options to modify the Group’s asset-holding structure in order to maximise shareholder value.

  • The Group’s preferred option is the potential re-domiciliation of the parent company, Polymetal International plc, into the Astana International Financial Centre (AIFC), a financial hub in Astana, Kazakhstan, taking into account the Group’s significant operations and presence in the region, the AIFC legal system, tax regime and the ability to execute such a re-domiciliation.

  • The key objective of any re-domiciliation will be to preserve shareholder value, restore our ability to pay dividends and increase the strategic flexibility to conduct our operations, as well enabling us to pursue different strategic developments for the Russian and Kazakhstan businesses.

  • No decision has been made and there can therefore be no certainty that the Company will proceed with, or ultimately complete a re-domiciliation.

  • The Company has attempted to secure the services of a depository interest provider in order to continue trading on the London Stock Exchange, should the re-domiciliation proceed. However, as at the date of this announcement, the Company has not yet been able to secure such services due to the depository interest providers approached by the Company being unable or unwilling to provide such arrangements, while Euroclear, as the CREST system operator, has not confirmed the availability of this kind of services for the AIFC jurisdiction. The Company is continuing its efforts to secure such services.

  • The Company confirms that any actions will be compliant with all applicable international sanctions, counter-sanctions and regulatory requirements and the Company will continue to take into consideration the  interests of its stakeholders prior to making a decision.

  • Further announcements in relation to the Group’s efforts to restore shareholder value and modify the Group’s asset-holding structure will be made when appropriate.

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The Company will hold a conference call and webcast on Thursday, 16 March 2023 at 12:00 London time (15:00 Moscow time).

Please complete the registration form using the link to participate in the call. Dial-in details will be sent to you via email after registration. Participants from Russia may use the webcast link below or a dial-out option which will be provided after registration.

To participate in the webcast follow the link:

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