Anglo-Russian gold producer Polymetal International plans to announce its half-year ends in September after appointing a brand new auditor to examine its accounts.
The London-listed firm stated MHA MacIntyre Hudson had agreed to turn into its new group auditor, changing Deloitte, which stepped down in April after Russia’s invasion of Ukraine made it unattainable to work within the nation.
Polymetal’s itemizing on the London Stock Exchange would have been beneath risk had it not managed to search out one other firm to log off its accounts — a requirement of the Financial Conduct Authority’s disclosure and transparency guidelines.
Deloitte and its rivals, EY, KPMG and PwC, have all introduced plans to separate from their Russian member companies, which means they can’t full work for shoppers within the nation and leaving corporations resembling Polymetal scrambling to search out replacements.
Polymetal stated it had analysed its authorized place and concluded that the appointment of MHA, which is able to work with Deloitte’s former Russian arm, was not contradictory to any of the sanctions imposed on Moscow.
“The company is not an entity or a body established in Russia and does not consider itself to be an entity owned by or acting on behalf or at the direction of a ‘person connected with Russia’,” it stated.
Two-thirds of Polymetal’s property are in Russia, whereas its administration group relies in St Petersburg. The the rest of its enterprise is in Kazakhstan, the place it operates two mines that produced greater than 550,000 ounces of gold equal final 12 months.
The firm’s largest shareholder is an organization related to its founder, Russian businessman Alexander Nesis, and whereas the miner produces most of its gold in Russia its most important holding firm is integrated in Cyprus.
That firm is in flip owned by an entity domiciled in Jersey, which is listed on the London Stock Exchange.
Polymetal stated MHA’s first task could be a evaluate of its half-year outcomes, which are actually anticipated to be revealed on September 22, after which its annual audit for the 12 months to December.
News of MHA’s appointment got here as the corporate offered an replace on present buying and selling. It stated gross sales of gold bullion and focus to clients in Asia had returned to a “regular schedule” in May and June after vital interruptions early this 12 months due to Covid restrictions in China and sanctions imposed on Moscow.
“The gap between production and sales and the resulting finished goods inventory are expected to peak in September,” the corporate stated in a press release, which additionally reiterated steering for gold manufacturing of 1.7mn ounces this 12 months.
Polymetal stated it will decide on whether or not to pay its full-year dividend for 2021 and half-year payout for 2022 on the time of its ends in September.
“Significant challenges and delays in establishing new sales channels and the resulting decline in operating cash flows will be the key factor informing these decisions,” the corporate stated.
Polymetal was as soon as the largest gold firm listed in London and a favorite of analysts and traders due to its development initiatives and industry-leading positions on sustainability.
Since Russia invaded Ukraine, traders resembling Norway’s sovereign wealth fund have dumped their holdings in Polymetal. Its inventory is down greater than 80 per cent for the reason that begin of the 12 months, giving it a market worth of about £850mn.
Polymetal has been ejected from the FTSE 100 index and has been learning plans to spin off its Kazakh operations into a brand new firm, though no point out was manufactured from these deliberations in Thursday’s replace.
Shares in Polymetal have been up almost 1.2 per cent on Thursday morning.
