Russian precious metals producer Polymetal International may not pay special dividends in 2016 because of unfavorable market conditions, CEO Vitaly Nesis said.
“As we’ve already said, the dividends will largely depend on dynamics of gold prices in the fourth quarter. The period’s cash flow will define the amount of free cash for special dividends. The quarter’s start was not favorable for prices for precious metals. We will see what happens next. If the dynamics are maintained, chances are few (for special dividends to be paid)”, he said.
The issue will be studied by the company’s board of directors in early December, he added.
According to the company’s dividend policy, its target is to pay 30% of adjusted net profit if the ratio of debt burden to earnings before interest, taxes, depreciation and amortization does not exceed 1.75, but the board of directors may decide to pay dividends even if the ratio exceeds the figure. The board also discusses payments of special dividends at the end of each financial year depending on the free cash flow, future capital expenditures and investment plans.
On August 24, the board of directors of Polymetal recommended paying $0.09 per share or a total of $38 million in dividends for January-June. Previously, the company paid $0.08 per share in dividends for January-June 2015, $0.13 in final dividends for 2015, and $0.3 in special dividends for the year. (Prime/Ukrainian metal)
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