Precious metals producer Polymetals (POLY.L) today announced news it plans to “re-prioritise” its focus on projects, this comes after its recent aquisition of a sizable gold deposit in Kazakhstan.
The company plans to refocus its capital and management resources on key projects in order to maintain a “prudent” level of leverage.
The plan includes a decision to terminate its project the Albazino expansion, a gold mine part of its largest project the Amursk POX hub, though Polymetals says this decision maybe reviewed if the is sufficient capital available in the future. Development of the Kutyn and Maminskoye projects will also be curtailed and no further exploratory work will be carried out.
Current construction work at the Scetloye gold project will be continued, with production expected to start in 2017.
Chief executive Vitaly Nesis commenting said “Following the acquisition of the Kyzyl project we have re-prioritised our project pipeline in order to focus our resources most effectively on low-risk and low-capital projects where we see clear scope for production growth and good upside potential. Going forward, we will continue to take a flexible view regarding our portfolio of development projects and will keep these under review”
Investors seem unimpressed with the decision with the shareprice flatlining this morning and trading around 540p (up 0.28%).
Precious metals producer Polymetals (POLY.L) today announced news it plans to “re-prioritise” its focus on projects, this comes after its recent aquisition of a sizable gold deposit in Kazakhstan.
The company plans to refocus its capital and management resources on key projects in order to maintain a “prudent” level of leverage.
The plan includes a decision to terminate its project the Albazino expansion, a gold mine part of its largest project the Amursk POX hub, though Polymetals says this decision maybe reviewed if the is sufficient capital available in the future. Development of the Kutyn and Maminskoye projects will also be curtailed and no further exploratory work will be carried out.
Current construction work at the Scetloye gold project will be continued, with production expected to start in 2017.
Chief executive Vitaly Nesis commenting said “Following the acquisition of the Kyzyl project we have re-prioritised our project pipeline in order to focus our resources most effectively on low-risk and low-capital projects where we see clear scope for production growth and good upside potential. Going forward, we will continue to take a flexible view regarding our portfolio of development projects and will keep these under review”
Investors seem unimpressed with the decision with the shareprice flatlining this morning and trading around 540p (up 0.28%).
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