Gold and silver miner Polymetal decided to sell Russia assets
- September 22, 2023
- Posted by: Quatro Strategies
- Categories: Europe, Mining & Metals, Sanctions & Regulation
Polymetal International, a prominent gold and silver producer, has unveiled its intention to sell all of its Russian assets as a unified entity, rather than opting for a split, according to CEO Vitaly Nesis. This decision comes in the wake of sanctions imposed by the United States on Polymetal’s Russian business and Polyus, the largest gold producers in Russia, in response to Russia’s actions in Ukraine.
The move to sell the entire Russian business as a cohesive entity is aimed at preserving shareholder value, as fragmenting the assets through piecemeal sales could potentially erode value significantly.
Polymetal International had recently completed its re-domiciliation to Kazakhstan from Jersey, securing a listing on the Astana International Exchange (AIX) and committing to sell the Russian business within nine months.
Nesis addressed concerns related to Russia’s rule compelling investors from “unfriendly” jurisdictions to sell assets at half their market price, stating that this rule wouldn’t apply to Polymetal due to its redomiciliation to Kazakhstan. Additionally, he affirmed that the sale would not be to an entity on the US sanctions list, effectively ruling out Polyus as a potential buyer.
While potential buyers were not named and discussions have yet to commence, Nesis emphasized that the sale would not be a hurried process, aiming to secure a sale at a substantial value for the asset.
By QUATRO Strategies International Inc.
QUATRO Strategies International Inc. is the leading business insights and corporate strategy company based in Toronto, Ontario. Through our unique services, we counsel our clients on their key strategic issues, leveraging our deep industry expertise and using analytical rigor to help them make informed decisions to establish a competitive edge in the marketplace.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Europe’s jet fuel security runs on a thirty-day cushion
Europe has kept its planes flying through imports from the United States and Asia, boosted refinery runs and inventory drawdowns, yet it remains the region most exposed to renewed disruption as the fragile truce buckles under fresh strikes, with less than thirty days of jet fuel demand cover leaving the continent operating on the thinnest cushion of any major market.
The projection of a nearly 600,000-barrel-per-day third-quarter deficit for Europe, against surpluses of 116,000 in the United States and 425,000 in Asia-Pacific, quantifies the structural imbalance that decades of refinery closures created and the Hormuz dependence exposed: Britain, France and Germany built their aviation fuel security on Middle Eastern shipments that the war severed and the truce’s collapse now threatens anew.
Linde commits $2 billion for Canada hydrogen facility to fuel Dow’s Path2Zero complex
Linde, the industrial gases giant, announced on Tuesday its plan to invest over $2 billion to construct a clean hydrogen production facility in Alberta, Canada. This project is designed to supply hydrogen to Dow’s Path2Zero production complex, marking a significant move toward reducing carbon emissions in industrial processes…
Iron ore prices rise as Chinese steel mills defy seasonal slowdown
Iron ore prices have climbed this week as Chinese steel mills ramp up production, defying the typical seasonal slowdown in output. Data from the China Iron and Steel Association show average crude steel production in the first 20 days of November reached its highest level for this period since 2020. This increase has…