Polymetal International (Polymetal) has confirmed it is “evaluating various options that could maximise shareholder value” as it looks to reform the business.
This includes potentially modifying its asset holding structure, so that there would be distinct ownerships across the multiple countries its operates in.
In a statement, the Anglo-Russian miner said: “Early stage deliberations are ongoing and accordingly, there can be no certainty as to the outcome. A further announcement will be made as and when appropriate.”
The developments follow reports in the Financial Times yesterday, which suggest Polymetal could separate its Russian business from the rest of the business – in an attempt to insulate the company from the knock-on effects of western sanctions.
Sources told the newspaper Poylmetal is now weighing up whether to split its Russian and Kazakh businesses, each with their own listing, three people familiar with the discussions said, the paper claimed.
This follows Russia’s invasion of Ukraine, with the firm operating eight mines and a processing plant in Russia and Kazakhstan.
While Polymetal has not been placed under Western sanctions, it has suffered a mass exodus of investors with its share price plunging 88 per cent in the course of a month.
Six of its board members have stepped down following the instigation of conflict in Ukraine, including the departure of British chair Ian Cockerill.
On 8 March, the London Stock Exchange stepped in to cancel trades in Polymetal amid concerns over erroneous trades and enforced cancellations.
Since then, its declining performance has resulted in the firm being booted off the FTSE 100 and the wider Russell indices.
Polymetal has since hired Riccardo Orcel to lead the company and hired four new non-executive directors.