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Polymetal suspends capex forecast, appalled by conflict in Ukraine

Polymetal CEO Vitaly Nesis

Polymetal CEO Vitaly Nesis

2nd March 2022

By: Reuters

  

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MOSCOW - Russian gold and silver producer Polymetal suspended its 2022 cost and capital expenditure guidance amid the conflict in Ukraine but kept its production forecast of 1.7-million ounces of gold equivalent, a mix of gold and other metals, unchanged.

Russia is the world's third largest producer of gold after Australia and China. Its gold miners mainly sell their gold to the country's commercial banks. 

Russia's central bank resumed gold purchases on the domestic market on Monday as part of its measures to try and ensure financial stability during Western sanctions against Moscow for its invasion of Ukraine. Russia calls its actions in Ukraine a "special operation". 

"We are shocked and appalled by the events going on in Ukraine. The conflict in Ukraine and related economic and political developments are likely to require a lot of management efforts to maintain company performance," Vitaly Nesis, Polymetal CEO, said in a statement on Wednesday.

"However, despite a wide range of uncertainties we will be working under in 2022, it is our current intention to operate as normally as possible," he added.

Polymetal's 2021 net earnings fell by 15% to $904-million, while its revenue rose by 1% to $2.9-billion, the company said, adding that it recommended a final dividend of $0.52 a share, or $246-million in total.

Edited by Reuters

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