Polymetal International plc ⛏ (POLY) - Share Chat

This mining firm operating in Russia and Central Asia is one of the largest producers of gold and silver, as well as a small portion of copper.

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Is anyone in this? PE half that of even emerging market/Russian gold miners with not much more leverage, rare earth metal exposure, sustainability leader and a stonking 10% yield. Seems like a good time to buy in after being pummelled by the high ruble.

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Hi,

I have had Polymetal for a year.

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Is now a good time to sell. The company shall recover in time but will trade sanctions affect it?

We really don’t know where it goes from here. Technically regardless of sanctions gold is a global commodity market so Poly will always be able to get it’s produce on the marketplace but may become more reliant on China etc.

I sold. I didn’t like the risk. Have worried that as this one is directly involved with Russia the SP will go the same direction as £POG

Understandable. We’re in uncharted waters, risk of 100% wipeout is high.

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I bought, but just with pocket money, not a lot.

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Dividend is very attractive at almost 30%.

When a multi billion pound company suddenly falls by 80% you can be assured the future dividend yield will be 0%.

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Anyone know if Freetrade is blocking purchases of Polymetal?
Tried to make some small trades this morning, none are going through!

Careful with wholesale copy and paste @dk1

Be careful. The divy could be made smaller or cut

Yeah this is an incredibly risky stock right now and could go to zero, however Blackrock doubled there Holdings and have a non exec director of poly on there mining trust fund. So if Blackrock sell there position then time to sell!

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Whilst I must iterate that my comments are not financial advice. I’ve actually increased my holdings in both Polymetal and Evraz.

I take the view that like all conflicts, they will eventually end, and trade will resume. Precious metals are by their very nature, uncommon and any company that mines them, will always have a future market.

To me this is a chance of buying good companies with big dividends mega cheaply. I haven’t gone in with huge amounts, but if it all goes belly up I’m not going to be destitute.

Whilst I understand the need for sanctions at this time, it helps no-one to sanction forever innocent russian citizens, workers and firms, that have no say or input into their governments and Putin’s actions.

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Yes very interesting that BlackRock doubled their stake, and agree with @HighlandTiger. I might top up too if there’s enough liquidity!

Problem is even if they’re fine selling to the Central Bank and China in the current period a devalued ruble will have an effect on costs and therefore profits. Only positive I can see on this front is they have modernised facilities so will not need outsized capex. Not to mention a failure of the financial system is not going to be good for refinancing debt or paying dividends.

I read ( I think on Simplywall) that their revenue was lower last Q, and their expected EPS was meant to drop a bit for 2022/2023. I really need to check this…

Then their was this invasion, and although gold went up, POLY is Russian. No one knows where this will go. For the record, I have held mine. Too late to sell for me.

Polymetal stated that "contingency planning has been initiated proactively to ensure business continuity, including selection of key equipment suppliers".

If the company cannot access suppliers and distributors, then sales will be impacted.

Dividends

"the company has confirmed that it will pay a final dividend for 2021. The final payout of $0.52 per share gives a total dividend for the year of $0.97 per share, down from $1.29 in 2020.

The 2021 dividend is below broker forecasts of around $1.20 per share. But it still leaves this stock with a trailing dividend yield of 26%, based on Polymetal’s recent share price of 275p.

Press reports have suggested the dividend cash was already transferred to the group’s Cyprus base before banking sanctions came into force. I’d guess that future dividends are more uncertain."

Source Fool

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Article suggesting freezing FX reserves could further push Russia to hold more of their future flows in gold, renminbi and commodities. Could be a lifeline for miners but still leaves default, nationalisation, restructuring risk etc.

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Polymetal has been spared sanctions thanks to its “UK nationality” designation which I presume is due to its 75% free float.

They also mentioned some things in their earnings. Namely that there is enough domestic demand, the top risk is cost and availability of supplies, and that the Russian government pays them in roubles which puts the dividend in danger. The next question then becomes if the government needs gold desperately enough at some point, what’s stopping them just nationalising their assets given its officially “foreign-owned” now?

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Indeed. One of my concerns as well.

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