POLY.L Regulatory News (POLY)

Polymetal International plc

Final dividend declaration of US$ 0.18 per share and approval of revised dividend policy

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to announce that the Board of Directors of the Company has recommended the payment of a final dividend of US$ 0.18 per share for the year ended 31 December 2016 and has approved a revised dividend policy.

In accordance with the Company's dividend policy, the Directors of Polymetal are proposing the payment of a final dividend of US$ 0.18 per ordinary share (approx. US$ 77 million) for the year ended 31 December 2016 (2015: US$ 0.13), representing 30% of the Group's underlying net income for the 2H 2016.

This will bring total dividends for the year to US$ 0.42 per ordinary share, or US$ 180 million.

The final dividend will be subject to shareholder approval at the Annual General Meeting of the Company to be held on 16 May 2017. Assuming shareholder approval is received, the dividend will be paid on 26 May 2017 in US Dollars, with an option for shareholders to elect to receive the dividend in pounds sterling. Such an election should be made no later than 8 May 2017. Payments in pounds sterling will be based on the USD/GBP exchange rate determined by the Company on 11 May 2017 and announced immediately thereafter.

EX DIV DATE:  4 May 2017

RECORD DATE: 5 May 2017

LAST DATE FOR CURRENCY ELECTION: 8 May 2017

PAYMENT DATE: 26 May 2017

The Company's issued share capital comprises 429,971,261 ordinary shares.

On 14 March 2017, the Board of Directors, having considered Polymetal's capital structure and market practices, has approved of the following changes to the dividend policy:

· Regular dividends will be paid in the amount of 50% of underlying net earnings for the period (previously - 30%), on a semi-annual basis. The policy will become effective from the FY 2017 interim dividend;

· The regular dividend is subject to a hard ceiling of Net debt / Adjusted EBITDA ratio below 2.5x (previously 1.75x subject to the Board's discretion);

· The Board will continue to consider the potential for a special dividend on an annual basis. The special dividend decision will be based, among other factors, on available free cash flow (post regular dividends), forward-looking financial projections, market outlook, and other relevant factors.

"We believe that the increased regular dividend payout ratio and firm leverage ceiling represent a more predictable and transparent capital structure. We hope the changes are welcomed by investors and the analyst community", said Vitaly Nesis, Group CEO of Polymetal. "The new policy further reinforces our commitment to capital discipline and substantial dividends".

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