Polymetal International plc (POLY)
Polymetal International plc
10-year loan with Far East and Arctic Development Fund for POX-2 construction
Polymetal is pleased to announce that it has agreed a 10-year loan of RUB 5.7 billion (US$ 77 million at the current exchange rate) at 5% fixed rate with the Far East and Arctic Development Fund (the "Fund").
The proceeds will be used to partially finance construction of the second stage of the Amursk pressure oxidation plant (POX-2) in 2020-2021. POX-2 capital expenditures until the end of 2020 are estimated at approximately US$ 100 million, while the total investments remaining until the end of the construction are expected to amount to US$ 312 million. The loan has the tenor of 10 years and repayable in equal quarterly installments from December 2023 till May 2030. POX-2 full ramp-up is scheduled for Q4 2023.
POX-2 is also a resident of the Territory of the Advanced Social and Economic Development under an investment activity agreement with the Far East Development Corporation ("FEDC"), which provides a number of tax and other benefits.
"We welcome the Fund's involvement in the POX-2 project as a significant financing partner. Our project is important for the entire Far East region, and we are pleased to secure long-term low-cost financing with a smooth repayment profile", said Vitaly Nesis, Group CEO of Polymetal. "Besides that, I would like to highlight the administrative support from FEDC which is essential for the project".
About the Fund
JSC "Far East and Arctic Development Fund" is a subsidiary of the State Corporation "VEB.RF" (Bank for Development and Foreign Economic Affairs). The Fund facilitates the inflow of investments by providing preferential and long-term financing for prioritized investment projects. The total assets of the Fund amount to RUB 80.8 billion. The Fund's portfolio comprises 17 projects in various industries with total value of RUB 488 billion.
JSC "Far East Development Corporation" is a managing company of the territories of the advanced social and economic development within the Far Eastern Federal District and the Free Port of Vladivostok.
Polymetal International plc (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is a top-10 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.
This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or "should" or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company's control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company's actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
|EQS News ID:||1041175|
|End of Announcement||EQS News Service|