7 reasons to invest in Polymetal
Our prime responsibility is to build long-term value per share
Return on investment in the precious metals industry is reliant on grades and mining conditions. We achieve better returns and lower risks from our project portfolio by setting appropriate thresholds on head grades and largely focusing on open-pit mines.
Average reserve grade (2P reserves), g/t of GE
| Hochschild | 5.6 |
| Polymetal | 3.5 |
| Agnico Eagle | 2.4 |
| Anglogold | 1.9 |
| Barrick | 1.7 |
| Centamin | 1.2 |
| Newmont | 1.1 |
| New Gold | 1.1 |
| Kinross | 0.8 |
| Yamana | 0.6 |
Source: Companies' data for FY2021
Polymetal has been developing refractory ore deposits since 2007. Our pressure oxidation (POX) processing hub in Amursk, which is now undergoing a major expansion, was key to extracting value from Albazino, Mayskoye, and, more recently, Kyzyl, as well as Nezhda in the near future. Moreover, as more and more gold resources globally tend to be refractory, our technological expertise in environmentally friendly refractory ore processing will be a key strategic advantage, including being in the market buying third party feedstock.
Production, GE Koz
We engender a strong focus on capital discipline throughout the business; maximising risk-adjusted return on capital is our priority in all investment decisions. We do not retain excess cash and return free cash flow to shareholders through substantial dividend payments while maintaining a safe leverage level.
1.13x
1.13x net debt/ebitda as at 31.12.2021
DY paid: 5-year average, %
| Centamin | 6.3 |
| FTSE 100 | 4.3 |
| Polymetal | 4.1 |
| FTSE 250 | 3.1 |
| Fresnillo | 1.9 |
| Endeavour | 1.7 |
| Gold Fields | 1.6 |
| Newmont | 1.6 |
| B2Gold | 1.6 |
| Centerra | 1.4 |
| Newcrest | 1.4 |
| Hochschild | 1.3 |
| FTSE GM | 1.3 |
| Kinross | 1.2 |
| Agnico Eagle | 1.1 |
| Barrick | 1.0 |
| Yamana | 0.9 |
| Anglogold | 0.8 |
| Pan American | 0.7 |
| Petropavlovsk | 0.0 |
Source: Company, Thomson Reuters and Bloomberg data
We believe that good corporate governance is key to the ongoing success of the business and value creation for our stakeholders. We are compliant with all regulatory requirements and best international practices being recognised as a corporate governance leader.
Maintaining high standards of ESG is one of our strategic pillars. We ensure this though impact assessment and responsible capital allocation, which means investing in green and more efficient technologies, delivering tangible socioeconomic value to communities and creating safe and inclusive workplaces.
See our efforts to date
Investment in both greenfield and near-mine exploration provides us with a cost-effective increase in our reserve base and, along with successful acquisitions, is the key source of our long-term growth.
30 Moz GE
Ore Reserves as at 01.01.2022
(+2.8 Moz / +7% y-o-y)
3.5 g/t
GE grade — one of the highest grade in the sector
2021 reserve per share, y-o-y change, %
| Centamin | 16 |
| Hochschild | 11 |
| Kinross | 9 |
| Polymetal | 7 |
| Agnico Eagle | 6 |
| New Gold | 3 |
| Barrick | 1 |
| Anglogold | 0 |
| Yamana | -1 |
| Newmont | -2 |
We pride ourselves on our operational excellence and delivering on our promises to shareholders. Despite difficult trading conditions, we beat our production guidance for the eighth consecutive year.
+82.3% from 2012 to 2021
| Guidance | Actual | % | |
|---|---|---|---|
| 2012 | 750 | 920 | +23 |
| 2013 | 960 | 1145 | +19 |
| 2014 | 1075 | 1303 | +21 |
| 2015 | 1085 | 1263 | +16 |
| 2016 | 1125 | 1256 | +12 |
| 2017 | 1270 | 1410 | +11 |
| 2018 | 1415 | 1532 | +8 |
| 2019 | 1435 | 1586 | +10 |
| 2020 | 1500 | 1637 | +9 |
| 2021 | 1600 | 1677 | +5 |
Notes: Historical gold equivalent guidance recalculated using 80:1 Ag oz/Au oz, 1:5 Cu mt/Au oz and 1:2 Zn mt/Au oz conversion ratios