(Alliance News) - Shares in Polymetal International PLC dropped on Wednesday after the company said it has pushed out a decision on its final dividend payment amid "significant" operating challenges following Russia's invasion of Ukraine.
Shares were trading 19% lower at 217.39 pence each on Wednesday morning in London.
The St Petersburg-based gold miner has concluded it is "no longer appropriate" to recommend or declare the final dividend payment for 2021 that was due to be put to shareholders for approval at the annual general meeting scheduled for later in April. It has decided to postpone the decision on the dividend payment to August.
Polymetal blamed this on significant changes in operating conditions encountered over the last few weeks.
It highlighted "mounting uncertainty" over available funds due to sanctions on Russia, higher working capital needs as a result of a "liquidity crunch" and supply chain limitations, and balance sheet constraints due to lower credit availability and significantly higher cost of funding.
"We have thoroughly reevaluated the board's march recommendation on dividends taking into account recent changes in macro and regulatory environment and unanimously have come to a conclusion that the payment decision should be postponed in order to sustain the stability and liquidity of the business," said Chair Riccardo Orcel.
"We will continue to monitor the operating, funding and regulatory conditions in which the business operates, hoping that stability is restored, improving visibility which would allow us to return to our cash distribution policy."
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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