PJSC Polyus (MOEX — PLZL) («Polyus», or the «Company»), the largest gold producer in Russia, notes that Fitch Ratings has affirmed the Long-term Issuer Default Rating of Polyus Gold International Limited («PGIL»), the controlling shareholder of the Company and the issuer of the $750 mln Eurobonds 2020, at ’BB-‘. PGIL’s outlook is revised to Positive from Negative.
As key rating drivers, Fitch highlighted the Company’s good quality gold reserves and large efficient open pit assets which underpin Polyus’ leading competitive position on the global cost curve. In addition, Fitch noted the Company’s strong production results and prospects and Polyus’ intention to concentrate on streamlining and improving capacity at its key producing mines. Underpinning Fitch’s decision to revise PGIL’s outlook to Positive, was the company’s significant cash balance and prudent financial policy.
Mikhail Stiskin, Senior Vice President, Finance and Strategy, commented:
«Fitch’s rating decision follows Moody’s, which assigned PGIL a „Ba1“ rating last month. We are pleased that our industry-leading cost position and commitment to maintaining a strong balance sheet have been recognised by international credit rating agencies. It is also pleasing that Fitch referenced the Company’s strong production results as one of the factors behind their decision to upgrade its outlook rating to Positive.»
Polyus (www.polyus.com) is the largest gold producer in Russia and one of the top 10 gold miners globally by ounces produced. The Company also holds the fourth largest mineral resources base in the world.
Polyus group’s principal operations are located in Krasnoyarsk, Irkutsk and Magadan regions and the Sakha Republic (Yakutia).
In 2015, the Company confirmed its status of one of the lowest-cost gold producers globally.
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Forward looking statement
This announcement may contain „forward-looking statements” concerning Polyus and/or Polyus group. Generally, the words „will”, „may”, „should”, „could”, „would”, „can”, „continue”, „opportunity”, „believes”, „expects”, „intends”, „anticipates”, „estimates” or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus’ and/or Polyus group’s operations. Many of these risks and uncertainties relate to factors that are beyond Polyus’ and/or Polyus group’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.