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Polymetal International PLC M (POLY)

Moscow
Currency in RUB
Disclaimer
323.60
+4.50(+1.41%)
Closed

POLY Price Commentary

If anyone else listened to the 3rd quarter update from Vitaly Nesis today, you have got to be impressed. Net debt to be reduced below 2bn by end of 1st quarter next year this is the trigger point at which serious discussions around resuming dividend payments can start, traditionally these discussions are held in March. The company remains committed to reducing net debt so that dividend payments can be made as the preferable way to return value to shareholders. If dividends are deemed appropriate, it was suggested that dividend payments would be made even if there are still shareholders holding shares on the NSD who will not receive them because of Euro Clear's ban of dealing with the NSD. ...... this is HUGE news.
There are a few I think. Firstly Gold has gone up to about 1760-1780 this is predominantly because inflation may be starting to abate in the US, the implication of this is that interest rate increases will be less severe from here on in which makes gold a more attractive hedge than cash. I read somehwhere that if gold can close Nov above 1735 it will turn bullish and as POLY's share price is so closely correlated to the gold price, this can only be great news. The collapse of FTX and subsequent turmoil in the crypto currecy world has also made gold a more attractive hedge. Finally, although there are more reasons to be honest, the latest company update from Vitaly Nesis stated that net debt will be down substantially by yr end, the company will be FCF positive and this should be sustainable and debt is expected to drop below 2bn in the 1st quater of 2023 at which point serious discussions about returning to dividend payments can be had, fingers crossed for that in Q2 2023 Hope all this helps
Good to hear your thoughts iain. looking forward to some positive developments next year with the planned move away from Jersey and the reinstatement of the dividend. Any peace in Ukraine will be an added bonus. 🙏
Things to look forward to:1. Peace in Ukraine2. Increase in gold price + revenues3. Recommencement of dividends4. Re-domiciling the Company5. Splitting of assets (Rus and Kaz)6. Restarting trading in US ADRs7 Increase in $:Rub fx back to $70If, and boy that is a huge if ay or all of these happen, the share price will improve, the more that happen, the higher they price will go.GL to all.
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