Polymetal International plc

  • ISIN: JE00B6T5S470
  • Land: Jersey

Nachricht vom 30.06.2021 | 12:00

Polymetal: Report on payments to governments for the year 2020

Polymetal International plc (POLY)
30-Jun-2021 / 13:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

Release time

IMMEDIATE                                                        LSE, MOEX, AIX: POLY / ADR: AUCOY

Date

30 June 2021

 

 

Polymetal International plc

Report on payments to governments for the year 2020

 

Polymetal issues the report on payments to government for the year ended 31 December 2020.

INTRODUCTION

This Report provides an overview of the payments to governments made by Polymetal International plc and its subsidiary undertakings (hereinafter referred to as "Polymetal") for the year 2020 as required under the UK's Report on Payments to Governments Regulations 2014 (as amended in December 2015). These UK Regulations enact domestic rules in line with Directive 2013/34/EU (the EU Accounting Directive (2013)) and apply to large extractive companies, whose securities are publicly listed on a UK-regulated stock market,  that are involved in the exploration, prospection, discovery, development and extraction of minerals, oil, natural gas deposits or other materials. This Report is also intended to satisfy the requirements of the Disclosure and Transparency Rules of the Financial Conduct Authority in the United Kingdom.

 

BASIS OF PREPARATION

Legislation

This report is prepared in accordance with The Reports on Payments to Governments Regulations 2014 as enacted in the UK in December 2014 and as amended in December 2015.

Reporting entities

This Report includes payments to governments made by Polymetal. Payments made by entities over which Polymetal has joint control or significant influence are excluded from this Report.

Activities

Payments made by Polymetal to governments arising from activities involving the exploration, prospection, discovery, development and extraction of minerals are disclosed in this Report. It excludes payments related to refining activities made to the refineries owned by the government agencies and any payments which are not directly attributable to the production and exploration activities.

Government

Government includes any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a government.

Project

Payments are reported at project level except that payments that are not attributable to a specific project are reported at legal entity level. Project is defined as operational activities which are governed by a single contract, or licence agreement, and form the basis for payment liabilities with a government. If such agreements are substantially interconnected, those agreements are to be treated as a single project.

"Substantially interconnected" means forming a set of operationally and geographically integrated contracts, or licence agreements that are signed with a government giving rise to payment liabilities. Indicators of integration include, but are not limited to, geographic proximity, the use of shared infrastructure and common operational management.

License agreements are aggregated for the purposes of reporting as a single project only when those legal agreements have substantially similar terms and are both geographically and operationally integrated.

 

 

 

 

Payments

The information is reported under the following payment types:

Income taxes

These are taxes paid by Polymetal on its income and/or profits in accordance with legislation enacted in the applicable jurisdiction. Payments are reported net of refunds. Value added tax, personal income taxes, social taxes, property taxes are excluded.

The maximum income tax in Russia is set at a rate of 20% and is allocated between federal budget and the budgets of the relevant constituent regions. In 2020 and 2019 the following proportion was applied: 3% allocated to the federal budget, whereas 17% allocated to the regional budgets. From 1 January 2017 Omolon Gold Mining Company LLC and Magadan Silver JSC are entitled to the decreased statutory income tax rate of 17% for the operations held in the Special Economic Zone of the Russian Far East, as well as decreased mining tax rate (paying at 60% of the standard mining tax rates). In return for obtaining this tax relief the members of the regional Special Economic Zone are obliged to invest 50% of their tax savings each year in the Special Economic Zone Development Program. From 1 January 2017 Svetloye LLC is subject to tax relief as a participant in a Regional Investment Project and is entitled to the statutory income tax rate of 0% up to 2021 and 10% from 2022 to 2026, as well as decreased mining tax rates.

In Kazakhstan income tax is set at a rate of 20% and there is no allocation for regional or local income taxes in this country.

Mining tax

Mining tax is a royalty payable in Russian Federation and Kazakhstan, which is calculated based on the value of the precious metals extracted in the period. In Russia this value is usually determined based on the realised selling price of precious metals or, in case if there were no sales during the period, cost of production of metals extracted. In Kazakhstan the value is determined based on the market price whether or not there were sales during the period.

Mining tax in Russia is levied at federal level, and then is reallocated between federal and respective regional budgets based on the following proportion: 40% of total tax collected is transferred to the federal budget, 60% to regional budgets. Mining tax and royalties in Kazakhstan are levied at republican level.

Licence fees

These are fees and other sums paid as consideration for acquiring a licence for gaining access to an area where extractive activities are performed. Administrative government fees that are not specifically related to the extractive sector, or to access to extractive resources, are excluded.

Rental fees

The land in the Russian Federation and Kazakhstan on which the Group's production facilities are located is owned by the state. The Group leases this land through operating lease agreements.

Other payments

Other payments include payments made and social commitments in accordance with subsoil contracts attributable to the Kyzyl project and investment in the Special Economic Zone Development Program of Omolon Gold Mining Company LLC and Magadan Silver JSC.

Cash and in-kind payments

Payments are reported on cash basis. No in-kind payments were made during years ended 31 December 2020 and 31 December 2019.

Materiality Level

Any payment, whether made as a single payment or as a series of related payments, below GBP 86,000 within a financial year is excluded from this Report.

Payments made to governments by joint ventures or associates of the Group in proportion to the company's interest in the respective venture or associate are insignificant to this Report based on materiality level set.

Exchange Rate

Relevant payments are made by Polymetal in Russian Rubles and Kazakh Tenge and for the purpose of this Report are translated to the US Dollar based on the foreign exchange rate at the relevant monthly average rate.

 

 

PAYMENTS PER GOVERNMENT

 

 

 

 

 

 

 

 

FOR THE YEAR 2020

 

 

 

 

 

 

 

 

 

 

Government         

000'$

 

 

 

Income tax

Mining

tax

Rental

fees

Licence fees

Other

Total

 

 

 

 

 

 

 

 

 

 

Russia

 

 

 

158,843  

86,066  

2,588  

1,220  

12,6681  

261,385  

Kazakhstan

 

 

 

87,813  

39,241  

-  

3,668  

8,7712  

139,493  

Total

 

 

 

246,656  

125,307  

2,588  

4,888  

21,439  

400,878  

 

 

 

 

 

 

 

 

 

 

PAYMENTS PER

PROJECT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Entity                  

000'$

Project

Country/ Government

Region

Income tax

Mining

tax

Rental

fees

Licence fees

Other

Total

 

 

 

 

 

 

 

 

 

 

Gold of Northern Urals CJSC

Voro

Russia

Svedlovskaya oblast'

                            27,298  

                         10,016  

                                          -    

                              -    

                           497  

                   37,811  

Svetloye LLC

Svetloye

Russia

Khabarovskiy Kray

-    

2,504  

354  

592  

-    

3,450  

Magadan Silver JSC

Dukat

Russia

Magadanskaya oblast'

                            38,962  

                         16,995  

                                       665  

                          628  

                       7,1761  

                   64,426  

Mayskoye Gold Mining Company LLC

Mayskoye

Russia

Chukotka Autonomous Okrug

                            13,975  

                         17,288  

                                          -    

                              -    

                              -    

                   31,263  

Omolon Gold Mining Company LLC

Omolon

Russia

Magadanskaya oblast'

                            41,148  

                         13,427  

                                       262  

                              -    

                       4,7941  

                   59,631  

Albazino Resources Ltd

Albazino

Russia

Khabarovskiy Kray

                            36,239  

                         23,980  

                                       703  

                              -    

                           201  

                   61,123  

GRK Amikan LLC

Veduga

Russia

Krasnoyarskiy Kray

                               1,221  

                            1,856  

                                       285  

                              -    

                              -    

                      3,362  

South-Verkhoyansk Mining Company JSC

Nezhda

Russia

Yakutia

                                      -    

                                   -    

                                       319  

                              -    

                              -    

                         319  

Varvarinskoye JSC

Varvara

Kazakhstan

n/a

28,707  

-    

-    

-    

605  

29,312  

Komarovskoye Mining Company LLC

Komar

Kazakhstan

n/a

3,811  

9,845  

-    

-    

1,169  

14,825  

Bakyrchik Mining Venture LLC

Kyzyl

Kazakhstan

n/a

55,177  

29,396  

-    

3,668  

6,9972  

95,238  

Inter Gold Capital LLC

 

Kazakhstan

n/a

118  

-    

-    

-    

-    

118  

Total

 

 

 

246,656  

125,307  

2,588  

4,888  

21,439  

400,878  

 

______________________

1 Includes payments under Special Economic Zone Development Program of $4,492 thousand for Omolon Gold Mining Company LLC and $6,465 thousand for Magadan Silver JSC.

2 In accordance with a memorandum with East-Kazakhstan Oblast Administration (local Kazakhstan government) Polymetal participates in financing of certain social and infrastructure development project of the region. During the year ended 31 December 2020 Polymetal paid $4,576 thousand under this programme.

 

PAYMENTS PER GOVERNMENT

 

 

 

 

 

 

 

 

FOR THE YEAR 2019

 

 

 

 

 

 

 

 

 

 

Government         

000'$

 

 

 

Income tax

Mining

tax

Rental

fees

Licence fees

Other

Total

 

 

 

 

 

 

 

 

 

 

Russia

 

 

 

84,619  

70,396  

2,553  

-  

12,0341  

169,602  

Kazakhstan

 

 

 

19,054  

45,326  

-  

-  

7,9912  

72,371  

Total

 

 

 

103,673  

115,722  

2,553  

-  

20,025  

241,973  

 

 

 

 

 

 

 

 

 

 

PAYMENTS PER

PROJECT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Entity                  

000'$

Project

Country/ Government

Region

Income tax

Mining

tax

Rental

fees

Licence fees

Other

Total

 

 

 

 

 

 

 

 

 

 

Gold of Northern Urals CJSC

Voro

Russia

Svedlovskaya oblast'

                            26,568  

                            9,101  

                                          -    

                              -    

                              -    

                   35,669  

Svetloye LLC

Svetloye

Russia

Khabarovskiy Kray

-    

2,189  

348  

-    

-    

2,537  

Magadan Silver JSC

Dukat

Russia

Magadanskaya oblast'

                            27,962  

                         15,881  

                                       747  

                              -    

                       7,9701  

                   52,560  

Mayskoye Gold Mining Company LLC

Mayskoye

Russia

Chukotka Autonomous Okrug

                                      -    

                         12,380  

                                          -    

                              -    

                              -    

                   12,380  

Omolon Gold Mining Company LLC

Omolon

Russia

Magadanskaya oblast'

                            11,390  

                         10,450  

                                       319  

                              -    

                       3,8251  

                   25,984  

Albazino Resources Ltd

Albazino

Russia

Khabarovskiy Kray

                            16,007  

                         18,940  

                                       608  

                              -    

                           239  

                   35,794  

GRK Amikan LLC

Veduga

Russia

Krasnoyarskiy Kray

                               2,692  

                            1,455  

                                       265  

                              -    

                              -    

                      4,412  

South-Verkhoyansk Mining Company JSC

Nezhda

Russia

Yakutia

-    

-    

266  

-    

-    

266  

Varvarinskoye JSC

Varvara

Kazakhstan

n/a

15,528  

3,791  

-    

-    

556  

19,875  

Komarovskoye Mining Company LLC

Komar

Kazakhstan

n/a

                               3,076  

                            7,483  

                                          -    

                              -    

                              -    

                   10,559  

Bakyrchik Mining Venture LLC

Kyzyl

Kazakhstan

n/a

450  

34,052  

-    

-    

7,4352  

41,937  

Total

 

 

 

103,673  

115,722  

2,553  

-    

20,025  

241,973  

______________________

1 Includes payments under Special Economic Zone Development Program of  $3,522 thousand for Omolon Gold Mining Company LLC and $7,945 thousand for Magadan Silver JSC.

2 In accordance with a memorandum with East-Kazakhstan Oblast Administration (local Kazakhstan government) Polymetal participates in financing of certain social and infrastructure development project of the region. During the year ended 31 December 2019 Polymetal paid $5,000 thousand under this programme.

 


About Polymetal 

Polymetal International plc (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is a top-10 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.

Enquiries

Media

 

Investor Relations

FTI Consulting

Leonid Fink

Viktor Pomichal

+44 20 3727 1000

Polymetal

Evgeny Monakhov

Timofey Kulakov

Kirill Kuznetsov

ir@polymetalinternational.com

+44 20 7887 1475 (UK)

 

+7 812 334 3666 (Russia)

Joint Corporate Brokers

 

Morgan Stanley & Co. International plc

Andrew Foster

Richard Brown


Panmure Gordon

Daniel Norman

John Prior

+44 20 7425 8000

 

 

 

 

+44 20 7886 2500

RBC Europe Limited

Marcus Jackson

Jamil Miah

+44 20 7653 4000

Forward-looking statements

This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or "should" or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company's control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company's actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

 




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