PJSC Polyus (MOEX — PLZL) (“Polyus”, or the “Company”), the largest gold producer in Russia, notes that S&P Global Ratings Services (“S&PGR”, or the “Agency”) has revised its outlook on the Company and its controlling shareholder Polyus Gold International Limited (“PGIL”) to Positive from Stable and affirmed ’BB-’ long-term corporate credit ratings on both companies.
The S&PGR also affirmed its ’BB-’ issue ratings on PGIL’s USD 750 million 5.625% Eurobonds due in 2020 and USD 500 million 4.699% Eurobonds due in 2022.
Among the key reasons for the outlook upgrade, S&PGR noted Polyus’ new dividend policy and clear commitment to public capital markets. The Agency also highlighted strong liquidity, positive free operating cash flow generation, minimal debt maturities in the next two years, and expected the Company to report supportive operating and financial results for 2016 and 2017. Polyus’ solid market position internationally, long reserves life and low production costs supported the outlook revision, S&PGR said.
Mikhail Stiskin, Senior Vice President, Finance and Strategy, commented:
“We are pleased that our strong operational performance is being recognised by a leading credit rating agency and remain committed to maintaining our prudent financial policies going forward.”
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.