Anglo-Russian miner Polymetal International (Polymetal) has postponed the decision on its final dividend payment for 2021, amid continued market uncertainty and concerns over funding.
It has pushed back the announcement to August 2022, despite originally planning to put the final dividend payment to shareholders for approval at the annual general meeting on April 25.
The decision was made by the company’s board of directors, which cited mounting uncertainty over availability of funds due to sanctions on Russian banks and the economy, alongside lower credit availability and higher labour costs amid supply chain turbulence.
Riccardo Orcel, newly appointed chair of the board, revealed the board “unanimously” came to the conclusion the payment decision should be postponed “in order to sustain the stability and liquidity of the business”.
Commenting on potential future updates, he said: “We will continue to monitor the operating, funding and regulatory conditions in which the business operates, hoping that stability is restored, improving visibility which would allow us to return to our cash distribution policy.”
Orcel is a new arrival at the firm following mass instability at the company.
While Polymetal not been placed under Western sanctions, it has suffered a mass exodus of investors since Russia’s invasion of Ukraine.
Its share price plunged 88 per cent over the course of a month following the instigation of conflict in the region.
The miner has since confirmed it is considering splitting off its Russia business from the rest of the company.
Currently, Polymeyal operates eight mines and a processing plant in Russia and Kazakhstan.
Six of its board members have stepped down amid the market chaos, including the departure of British chair Ian Cockerill.
On 8 March, the London Stock Exchange stepped in to cancel trades in Polymetal, due to 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 Orcel to lead the company and hired four new non-executive directors.