Polymetal International PLC (LSE:POLY) said it is in the early stages of evaluating "various options to maximise shareholder value" which could change the structure of the gold and silver miner.
“Such options, among others, include potential modification of asset holding structure which would ensure distinct ownership in various jurisdictions in which the company operates,” the company said in response to speculation in the media.
“Early stage deliberations are ongoing and accordingly, there can be no certainty as to the outcome,” tthe precious metals group with operations in Russia and Kazakhstan added.
Earlier this month, Polymetal said the conflict in Ukraine and the related economic and political developments are likely to '"require a lot of management efforts to maintain company performance"'.
Results for 2021 showed flat revenues of US$2.89bln and net earnings down 15% at US$904mln.
A report in the Financial Times yesterday said Polymetal is considering splitting its Russian business from the rest of the company in an attempt to insulate its international business from the knock-on effects of western sanctions.
While Polymetal has not been placed under UK, US or EU sanctions, it has suffered an exodus of shareholders including Norway’s sovereign wealth fund since Russia’s invasion of Ukraine, with its stock falling as much as 75 per cent, the article added.
The company has also been ejected from the FTSE 100 index. To combat the departure of investors, Polymetal is weighing whether to split its Russian and Kazakh businesses, each with their own listing, three people familiar with the discussions said, the paper claimed.