Polymetal: Far East and Arctic Development Fund and Credit Bank of Moscow will finance construction of grid power line for Ne... (1081829)
30 Giugno 2020 - 8:00AM
UK Regulatory
Polymetal International plc (POLY)
Polymetal: Far East and Arctic Development Fund and Credit Bank of Moscow
will finance construction of grid power line for Nezhda project
30-Jun-2020 / 09:00 MSK
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The issuer is solely responsible for the content of this announcement.
Release time IMMEDIATE LSE, MOEX, AIX: POLY / ADR: AUCOY
Date 30 June 2020
Polymetal International plc
Far East and Arctic Development Fund and Credit Bank of Moscow will finance
construction of grid power line for Nezhda project
UVES LLC ("UVES"), an independent grid management company, which will be
funded by Far East and Arctic Development Fund ("FEDF") and Credit Bank of
Moscow ("CBoM"), will start construction of the grid power line and
substation for Polymetal's Nezhda project.
THE PROJECT AND FINANCING STRUCTURE
The power line will be built, owned and operated by UVES, an independent
grid management company led by an experienced team with a proven track
record in infrastructure projects. Upon the construction completion
scheduled for Q2 2022, the facility will be leased out to Polymetal on
pre-agreed terms.
The project CAPEX to be incurred by UVES is estimated at RUB 6.0 billion[1]
(approximately US$ 86 million, net of VAT), of which RUB 5.5 billion will be
funded with the FEDF's 10-year senior loan and RUB 1.7 billion with the
CBoM's 5-year subordinated loan facility. Polymetal will grant a guarantee
for the FEDF loan, as well as guarantee payments under the lease agreement
to UVES.
The single-circuit 110 kV power line will run 254 km from Khandyga, 415 km
east from Yakutsk, to the Nezhda production site. The project is fully
permitted with construction set to start in July.
STRATEGIC Rationale for the project
? Cost savings: grid connection will reduce all-in power cost from
approximately 16 to 10 RUB/Kw-h compared to in-house generation from
diesel, which translates into a roughly US$ 40/oz reduction in Nezhda's
TCC. Nezhda annual energy consumption is estimated at 110 GWh.
? Meaningful decrease in environmental footprint:
? 75% reduction of equivalent Nezhda's CO2 emissions from 64 Kt to 16 Kt
per year, which implies a 4% decline in total Group's CO2 emissions.
? Reduction of environmental accident risks related to transportation
and storage of large diesel fuel volumes.
? Benefits from further down-the-line power intensive improvement
opportunities.
"Grid power enhances the economics of Nezhda and drastically reduces its
environmental footprint", said Vitaly Nesis, Group CEO of Polymetal.
"Long-term project funding from FEDF supported by a highly experienced
management team ensures successful execution of the project and allows us to
preserve our focus on the key business".
"As one of the largest Russian banks, we fully understand our impact on
economic, social and environmental issues, and embrace responsibility that
it implies. We are actively integrating sustainable development principles
into our business, prioritising projects that generate social and
environmental benefits, such as the construction of a power line for Nezhda,
funded by the Far East and Arctic Development Fund and us", said Alexander
Kaznacheev, Deputy Chairman of the Board of Credit Bank of Moscow.
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.
About FEDF
JSC "Far East and Arctic Development Fund" is a subsidiary of the State
Corporation "VEB.RF" (Bank for Development and Foreign Economic Affairs).
The fund implements prioritized investment projects in the Far East and
Arctic region by providing long-term preferential financing. On behalf of
the Russian Government, the fund also develops digital services aimed to
increase promptness and transparency of interaction between the state and
business in various industries, and supports small and medium-sized
enterprises.
Enquiries
Media Investor Relations
FTI +44 20 3727 Polymetal ir@polymetalinternational.com
Consulting 1000
Evgeny +44 20 7887 1475 (UK)
Leonid Fink Monakhov
Viktor Timofey
Pomichal Kulakov
+7 812 334 3666 (Russia)
Kirill
Kuznetsov
Joint Corporate Brokers
Morgan +44 20 7425 RBC +44 20 7653 4000
Stanley & 8000 Europe
Co. Limited
Internationa
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Marcus
Jackson
Andrew
Foster
Jamil
Miah
Richard
Brown
Panmure
Gordon
+44 20 7886
2500
James
Stearns
Forward-looking statements
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[1] Including G&A and contingency costs.
ISIN: JE00B6T5S470
Category Code: MSCM
TIDM: POLY
Sequence No.: 72684
EQS News ID: 1081829
End of Announcement EQS News Service
(END) Dow Jones Newswires
June 30, 2020 02:00 ET (06:00 GMT)
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