In today’s ‘Meet the CEO’ segment hosted by Panmure Gordon, we talk to Vitaly Nesis, Group CEO of the London Listed Polymetal International PLC, a leading precious metals producer in Russia, Kazakhstan and Armenia.
The segment is hosted by Simon French, Chief Economist at Panmure Gordon and Kieron Hodgson, Natural Resource Research Analyst at Panmure Gordon. Nesis answers range of questions on company’s business model, dividend policy, debt management and futures prospects put forward by French and Hodgson.
Investors appreciate consistency and timely execution of projects, hence why the Share price is up 34% in the last 5-6 years even though the sector is down 14%
Dividend policy: Company is moving towards regular dividend policy, will incorporate 50% payout ratio of the net income
Location advantage: Russia and Kazakhstan score high on the stability of taxation policy, while remoteness and lack of infrastructure are the commonly faced problems in Russia.
Outlook for Spot Gold and Silver: Nesis is bullish on Silver and Gold, but refrains from making any bold prediction. The company is looking to add more silver projects to its portfolio.
Net debt: Nesis says, “The rise in the net debt in the first half of the year will be fully reversed in the second half”.
What’s the priority – return to shareholder or further growth in production? : First priority is production growth followed by regular dividend and investing in high quality growth options. The company does not need any M&A to ensure 10% growth from 2021 to 2025. Then is the turn of the special dividend. Debt reduction is the last priority.
Watch the full segment for more info on-
The areas/projects that could deliver the most growth
Next major stimulus/key announcements over the next 12 months
Safety measures and corporate governance