Top News: Polymetal Government Payments Total Usd225.8 Million In 2016

Polymetal on track for full year as gold sales grow

LONDON (Alliance News) – Polymetal International PLC released its report on government payments on Wednesday, revealing it paid a total of USD225.8 million in tax, rental fees, licence costs and in other expenditure in 2016 to Russia, Kazakhstan and Armenia.

Polymetal shares were down 0.6% on Wednesday morning at 903.50 pence.

The mid-cap miner said it paid a total of USD138.4 million in income tax to the three nations in 2016, USD84.1 million in mining tax, USD1.3 million in rental fees, USD2.0 million of other costs and a nominal amount of licence fees.

Russia, being the central hub of Polymetal’s operations, received a total of USD211.3 million of all government payments made in 2016. The company paid USD133.1 million in income tax, USD76.5 million in mining tax, USD1.2 million in rental fees and USD443,000 in other costs to Russia during the year.

Kazakhstan received USD5.3 million in income tax, USD4.5 million in mining tax and USD1.5 million in other costs, for a total payment of USD11.4 million.

Polymetal only paid nominal amounts in licence and rental fees to Armenia in 2016, as well as USD3.0 million in mining tax.

For comparison, Polymetal made no payments to Armenia in 2015, whilst payments to Russia totalled USD209.3 million and payments to Kazakhstan amounted to USD4.7 million, for a total of USD214.1 million.

On a project-by-project basis, the Mayskoye project in Russia resulted in the largest project government payment in 2016 totalling USD90.1 million, predominantly in mining and income tax.