Polymetal reports boost in Russian demand for gold as sanctions hamper exports
Russian gold miner Polymetal said it remains resilient to the impact of sanctions today after a boost in demand from Russians looking to store their cash in the traditional safe haven asset.
The firm said its business with Kazakhstan remained strong and it had continued to trade robustly with East Asia, despite supply chain disruption leading to hike in costs.
Severe Western sanctions have hampered exports to the US and Europe, but it had seen a surge in demand domestically as Russians retail customers scrambled to buy up the precious metal.
“Domestic demand for gold is boosted by local retail investment,” the firm said today.
Sales of gold bullion in Russia had been restored to “new counterparties” on the same terms as previously, it added.
Shares in Polymetal have plunged since Russia launched its invasion of Ukraine last month and are currently trading 63 per cent down from their price on 22nd February, just prior to the invasion.
The London Stock Exchange was forced to step in and suspend trading in the shares this month amid a sell-off frenzy, and the miner was later booted off the flagship FTSE 100 index.
Polymetal’s board also saw a mass exodus this month as six bosses left over the crisis in Ukraine.
Chair of the board Riccardo Orcel said he was now looking to rebuild the firm.
“It is my opinion that investors, private and institutional, that collectively control over 75% of this company deserve a Board that will lead the company through this turbulent time, preserving and hopefully rebuilding the value of their investment as well as protecting the livelihood of thousands of employees, contractors, suppliers and other stakeholders”, he said.