Polymetal International plc Special dividend consideration by the Board
Polymetal International plc (LSE, MOEX: POLY; ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") announces that on 4 December 2013 the Board of Directors of the Company has decided not to pay special dividends for the year ending 31 December 2013.
In accordance with the Company's dividend policy, the Directors of Polymetal have considered the potential for payment of a special dividend for the year ending 31 December 2013, taking account of the performance of the Group during the year to date, available free cash flows and future investment requirements. Although the Company has performed in line with the Directors' expectations, in light of the current negative commodity market conditions the Directors have decided not to declare a special dividend for the current year.
The Company's dividend policy remains unchanged. The amount of the final dividend for the year will be reviewed by the Board in due course and recommended to shareholders for their approval at the Annual General Meeting in 2014. The regular dividends for the year shall represent 30% of the Company's net earnings provided that Net debt / Adjusted EBITDA is below 1.75 or, at the Board's discretion, above that level.
"Polymetal has already demonstrated its ability and commitment to deliver meaningful cash returns to our shareholders during the last twelve months, which has resulted in a superior dividend yield", said Vitaly Nesis, CEO of Polymetal, commenting on the Board's decision. "However, given the current trends in the gold and silver market, the Board has rightfully taken a conservative approach in order to preserve the current balance sheet strength of the Company."
