RE: Polymetal article18 Apr 2022 10:57
Here's an extract posted on the poly board:
Polymetal International, the Russian mining company, has become the most highly purchased stock by retail investors since the invasion of Ukraine, raising pressure on the London Stock Exchange to intervene. Shareholders backed the stock after its sharp slump in the early weeks of the crisis.
Polymetal, although evicted from the FTSE indices after several brokerage firms stopped supporting trading in Russia-focused companies, is currently more popular with ordinary investors than any FTSE 100 company. Polymetal has been the most popular share among customers of AJ Bell, the investment platform, since February 25 the day after Russia invaded Ukraine displacing Lloyds Banking Group.
The London Stock Exchange Group declined to comment on claims that it was irresponsible to allow continued trade in the miner. It is understood to be monitoring the situation closely. Alan Mendoza, executive director of the Henry Jackson Society, a pro-democracy think tank, said: "Polymetal's productions of gold and silver is a core source of revenue for the Russian state and its profile means it is a likely target for future rounds of sanctions. "When its auditor has pulled out of working for the firm after the invasion of Ukraine, it's irresponsible for the LSE to continue to allow retail investors to jeopardise their savings and capitalise the firm by trading Polymetal stock."
Shares in Polymetal have fallen by just over three-quarters, or 843p, to 254p since the war began. Investors have bought stock despite uncertainty over the effect of sanctions on Russia. Laith Khalaf, head of investment analysis at AJ Bell, said that the fall in Polymetal's shares "represented a buying opportunity for investors brave enough to take the plunge when the share price bottomed out in March". "There remains a lot of uncertainty over the outlook for the business so it remains a speculative trade," he added. Polymetal, which listed in London in 2011, produces gold and silver from nine sites across Russia and Kazakhstan.
Its biggest shareholder is Alexander Nesis, 59, the billionaire Russian oligarch who founded the company in 1998. Chris Bryant, Labour MP and chairman of the parliamentary standards committee, said: "Some people really don't get it. These investments are aiding and abetting Putin's war."... Last week, Polymetal said it would postpone a decision on its final dividend for last year amid a liquidity crunch and supply chain challenges that raised working capital needs. A week after Russia's invasion of Ukraine, Polymetal proposed a $246 million investor payout, equating to $0.52 a share.
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