- Pre-tax profit for 2020 more than double the 2019 figure, at $1.4bn
- Final dividend of 89¢ announced
Polymetal (POLY) kept things simple in 2020. It maintained its cost level and let the profits roll in, thanks to the record gold prices. Its adjusted cash profit for last year was $1.7bn (£1.2bn), a 57 per cent increase on 2019. The total 2020 dividend has increased by the same amount, to 129¢, equal to paying out 100 per cent of free cash flow.
While the pandemic had little impact on the miner’s results – capital spending came in 8 per cent above guidance at $583m – five workers have died from the virus in the past 12 months.
Polymetal chief executive Vitaly Nesis said he was “pleased to report record net earnings for the year amidst a challenging global backdrop”. The gold miner forecasts a drop in production and increase in costs this year but a return to the 1.6m ounces (oz) level in 2022. Buy.
Last IC View: Buy, 1,611p, 26 Nov 2020
| POLYMETAL INTERNATIONAL (POLY) | ||||
| ORD PRICE: | 1,472p | MARKET VALUE: | £ 6.9bn | |
| TOUCH: | 1,471.5-1,472.5p | 12-MONTH HIGH: | 2,085p | LOW: 990p |
| DIVIDEND YIELD: | 6.3% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 424¢ | NET DEBT: | 69% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
| 2016 | 1.58 | 0.56 | 93.0 | 42.0 |
| 2017 | 1.82 | 0.44 | 82.0 | 44.0 |
| 2018 | 1.88 | 0.43 | 79.0 | 48.0 |
| 2019 | 2.25 | 0.62 | 102 | 82.0 |
| 2020 | 2.87 | 1.41 | 230 | 129 |
| % change | +28 | +127 | +125 | +57 |
| Ex-div: | 06 May | |||
| Payment: | 28 May | |||
| £1=$1.40 | ||||
