Member Info for Manlord

Wants to take the correct steps in the process of building a solid & robust company, not a flash in the pan with a short term 10 bag spike for everyone.

Let’s see what comes of the next phase of news but if I were you (and I am in that position) I’d be looking at anything in low single digits as being an opportunity long term.

I’ll be buying continuously on that basis no matter whether we have 10% up or down days.

This company is well positioned now and has a good man leading the ship. PR will also increase significantly in Q1 with quarterly investor Q&A’s, social media updates and generally becoming more visible in the market.

Again, the above is all just my interpretation and you should DYOR.

ML is happy and very excited for the years ahead.

ML.

Had a 40 minute phone call with SB this morning & I’m 100% satisfied that he is best positioned to generate & deliver shareholder value.

He has zero interest in hyping up for short term SP increases and is a man of science! He has ticked 7 of 10 boxes that you must tick in order to achieve what we are trying to a Pitfield. He is very pleased with the current progress and he really is confident that we will have an economically viable copper deposit.

We spoke about Stavely Minerals and their share price performance - 10 bagger in 2 years but drop backed along with Encounter Resources - 5 bagger in 4 years and how both went about generating shareholder value long term. One going it alone & one going with a major (BHP) and how each had it merits. Empire would ideally like a combination of both but learnings have been identified and could come to fruition during the course of 2023 but depending on next phase of the plan. Q1 will be busy and the team are already on-site.

In terms of majors, he couldn’t confirm if they were already aware of Empire but First Quantum Minerals ($22b Mcap) are definitely aware of us having done work in the area previously but had to spend their investment by a specified time meaning the delay they experienced in Stavely (aboriginals) did not allow them to invest however they were very keen to do so. The long term plan could of include a major who these days are making extraordinary changes in how they invest by taking stakes in companies they feel are undervalued & how to get involved with the company in the cheapest manner (open market purchase if undervalued).

Walton & Stavely - will be back soon enough (end of Q1) but all focus is on Pitfield now with IP surveys & follow up drilling (all done quickly & results in days, not weeks like assays). Expect news flow thick & fast from early Q1 onwards and across multiple areas. Gindalbie is very exciting and will be back with news soon also at Walton. My guess is tangible & value adding news every few throughout 2023.

SB is very excited about what the next year holds, especially Pitfield and the good reasons to compare us to Udokan with 1.2B tonnes @ 2% across a 30km licence (ours 40km). It’s the 3rd largest copper deposit in the world so if things go according to plan and as per RNS’d previously we have lots to look forward to.

The IP surveys will indicate Resistivity to then pinpoint areas for drilling.

I spoke about the BoD making share purchases which the details of I’ll keep between myself & SB, but it must be noted that even when they want to take significant chunks at what they feel is significantly undervalued it is very difficult to do so with all the news previously RNS’d and the news due. Closed periods exist for this reason and it can also be very frustrating for the BoD who feel they sometimes miss opportunities because they can’t buy with knowledge of positive news.

SB is a very clever guy, comes across as knowledgable but mostly, w

I be sure to pass on the comments.

Call arranged for 9am Tuesday.

Have a good weekend

ML

Noted!

Thanks guys.

ML

Morning all,

I’m going to try to organise a call with SB, just like I have previously with Mike & the BoD many times before.

I’m happy that my queries or questions will cover most items but please feel free to add your questions below & copy & paste if in a thread so I can track them all together.

This should be happening next week and I’ll share whatever info can be shared. Please remember no info can be given on items not already communicated but we can request granular details of past RNS’s so it’s making sure you have a full understanding of what has been sent to the market already.

I’ll need them here by Monday in order to compile.

Thanks

ML

Chart is screaming hold / buy...................

2.5p on the cards as we build up to the next phase of news (pre Xmas) and then a heavy newsflow Q1.

Trying to get a few % here and there is as risky as it can be, sit on your hands and reap the rewards very very soon.

ML

@BB

You have an issue with information being sent around which has been presented as coming from IR but on the other hand you also have an issue with the suggestion of investors confirming the validity of the information with IR themselves if they require that secondary opinion.

I rarely partake in abuse of anyone on these forums (if ever) but you really are a toxic individual. I for one have no interest in engaging with you & from this point on I will not even reply with my thoughts on you or anything you post from this point on.

If this BB took it upon themselves to just ignore you in full & report any post you might make that has no relevance to POLY, you’d be starved of the poisonous oxygen you seem to crave in order to exist here. You need to take a long hard look at yourself & your behaviour as it’s far from adult behaviour.

Take care & all the best.

Now back to POLY ladies & gents………

ML

Never take anything as gospel from an unknown source and if you have any concerns about the legitimacy of the questions and replies by all means make contact with IR but please be sure to come back in here with the positive reply just as quick as you post about the potential negatives. It's only fair :-)

I've made contact myself to be sure, however, everything I have read is broadly in line with what the BoD said in last presentation along with fielding a Q&A. Nothing market sensitive has been released but you do have a granular level detail of previously communicated information.

Always DYOR...................

ML

Thanks to that fellow investor over on Reddit.

Posted here for anyone who has not seen it. All very positive.

ML

Q15. When can we expect a definite answer whether the company will split along political lines into Poly-R and Poly-K?
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Likely in Q2 2023.

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Q16. I own shares of POYYF, which are the LSE shares traded OTC, and my broker is Charles Schwab. And I reside in America as an American citizen. Is there anything preventing me from receiving a dividend in the event Polymetal (whether it splits or not) announces the return of the dividend sometime in 2023?
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No. You are fully eligible to receive dividends.

ML

Q14. Is there anything preventing management from buying additional shares of Polymetal right now? The share price is significantly below its IPO price, while having substantially more assets and FCF than back in 2011. If nothing is preventing management from buying at these lower than IPO prices, why wouldn't they do so to show confidence in the company, its assets, and its future?
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Participation in Employee Stock Option Program is fairly widespread among senior and middle management (total ownership of [0.9%]). Around 200 employees are a part of it. We strongly believe in alignment of interest of the management and shareholders. We can not comment on individual decisions and choices of members of the management team in acquiring or disposing of their shares. You will also note significant technical barriers for Russian management team members to acquire shares in the current environment.

ML

Q13. In the event of Poly-R and Poly-K split, would it be possible to allow shareholders to increase their position in one over another in a tax free way? Meaning, if a shareholder (Shareholder B) wanted more exposure to Poly-R and another shareholder (Shareholder A) wanted more exposure to Poly-K, that the company would permit a tax free trade process of ownership? For example, perhaps 1 share of Poly-K is worth 2 shares of Poly-R and if Shareholder A has 1000 shares of Polymetal, prior to the split, they could agree instead of receiving 1,000 shares of each they could receive 500 Poly-K and 2,000 shares of Poly-R and Shareholder B who also had 1,000 shares of Polymetal now receives 1,500 shares of Poly-K and zero Poly-R after the split. Does that make sense?
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It is too early to comment on the mechanism of the transaction, as it has not yet been developed and approved. You might also appreciate that a lot of sanctions-related restrictions exist on such complex swaps, e.g. bans on new investments into Russia.

ML

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Q11. If a decision is made to make a dividend payment in March 2023 when can we likely expect the dividend to be distributed?

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Usually full-year dividend is distributed at the end of May. You can take this period as the base case keeping in mind that due to the existing complex settlement and compliance procedures it may be delayed.

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Q12. Are there any plans to expand into new mines in Kazakhstan or Uzbekistan?
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We have several greenfield exploration projects in different regions of Kazakhstan, but they are in a very early stage now. The current goal is to define mineralization, then there will be a Mineral Resource, followed by Ore Reserve estimates, and only after that we will be able to provide a specific plan on expansion. There is nothing other than scoping in Uzbekistan yet, although we are working with local partners to start exploration.

ML

Q10. I understand an exploration office was set up in Uzbekistan. In the event of a split would Poly-R or Poly-K take over that exploration office?
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Poly-K.

ML

Q9. We are entering into a period of elevated interest rates for the foreseeable future. Has the company considered that once the dividend returns there will be smaller dividend payments so the company may focus on becoming debt free or substantially debt free to ensure viability and strengthen the dividend in the future?
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Future dividend payment decisions are subject to a review by the board of directors with accordance with our dividend policy. More on dividend policy could be found on our website: https://www.polymetalinternational.com/en/investors-and-media/shareholder-centre/shareholders-faqs/#q-2.

ML

Q8. In the event of a potential split, how will debt be distributed between Poly-R and Poly-K?
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This is yet to be decided. However, please note that the majority of debt (70%+) currently sits with Russian assets.

ML

Q7. If the Russian assets are not generating FCF, what are potential paths for a return of FCF for the Russian assets in the event of a split into Poly-R and Poly-K?
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Completion of ongoing project developments, which we expect some time in 2024 will allow FCF to pick up. Relatively strong RUB is also a major factor, if it weakens in subsequent years, it will also help driving cash costs down.

ML

Q6. Why is the FCF coming from the Kazakhstan assets? Can you help me understand on the high-level why the Russian assets are not generating FCF at the moment?
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Russian assets, unlike Kazakhstan, are going through intensive capital expenditure phase (ongoing project developments: POX-2, Prognoz, Urals Flotation Plant etc). In addition, all of the working capital growth (procurement, production/sales gap) is attributable to Russian operations, which also have generally higher costs due to stronger Rouble. Hence superior FCF generation in Kazakhstan vs Russia.

ML

Q5. How will shares of Poly-R and Poly-K be distributed for owners of POYYF, which are Polymetal ordinary shares from the LSE being traded OTC?
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Same way as for all other shareholders, via dividend in specie.

ML

Q4. Do I understand correctly that in the event of a split into Poly-R and Poly-K we would receive an equal number of shares in each company (based on the number we already hold) and that those shares would remain on the exchange they are listed? So for example, if I own Polymetal on the LSE, if it were to split into Poly-R and Poly-K my shares for both would be on the LSE?
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While it’s way too early to speculate about this, our broad plan envisages distribution of shares of a newly established company as a dividend in specie. Yes, our plan provides for these shares to remain on the exchange they’re currently listed.

ML