POLY.L Regulatory News (POLY)

Polymetal International plc

Board approves special dividend of US$0.15 per share

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to announce that on 7 December 2016 the Board of Directors of the Company approved a special dividend of US$0.15 per share for the year ending 31 December 2016.

Dividend declaration

In accordance with the Company's dividend policy, the Directors of Polymetal, having considered the Group's year-to-date performance, available free cash flows and future investment requirements, have resolved to pay a special dividend of US$0.15 per ordinary share, representing approximately US$64 million in aggregate. This brings total dividends declared for this financial year to US$0.24 per share (2015: US$0.51, 2014: US$0.41, 2013: US$0.09, 2012: US$0.81, 2011: US$0.20) or US$103 million.

This is the fourth special cash dividend in the Company's history, which follows special dividends paid in 2012, 2014 and 2015, totaling US$467 million.

The special dividend will be paid on 29 December 2016 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 19 December 2016. Payments in pounds sterling will be based on the US$/GBP exchange rate determined by the Company on 20 December 2016 and announced immediately thereafter.

EX DIV DATE: 15 December 2016

RECORD DATE: 16 December 2016

LAST DATE FOR CURRENCY ELECTION: 19 December 2016

PAYMENT DATE: 29 December 2016

The Company's issued share capital includes 428,262,338 ordinary shares.

"The special dividend for 2016 underscores Polymetal's ability to generate free cash flows and reaffirms our commitment to capital discipline through the commodity cycle, while also making meaningful progress on our substantial growth profile", said Vitaly Nesis, Group CEO.

Regular dividend policy

The Company's dividend policy remains unchanged. The target payout ratio is 30% of underlying net earnings (net earnings adjusted for non-cash foreign gains/losses and impairment charges) provided that Net debt / adjusted EBITDA is below 1.75x. The Board has the full discretion to act flexibly with regards to shareholder dividends should the self-imposed leverage covenant of 1.75x Net debt / adjusted EBITDA be exceeded.

The amount of the final dividend for the year will be reviewed by the Board in due course in accordance with the dividend policy and then recommended to shareholders for their approval at the Annual General Meeting in 2017.

Hedging policy

The Board reviewed the Company's hedging policy and approved the continued application of the existing no-hedge approach going forward. 

Enquiries

FORWARD-LOOKING STATEMENTS

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