Polymetal doubled its dividend after higher silver and gold costs boosted earnings in the first 50 % of the entire year.

The london-listed russian mining team, that also benefited from falls in the rouble and kazakh tenge, said on wednesday it might raise its payout to 40 dollars per share.

Shares in polymetal have risen 63 % in 2010 to trade at 19.43, which makes it among the best performers into the ftse 100.

Mining has been among the list of couple of areas inside index in which dividends are maintained, on back of precious metals rates and stimulus steps in asia that helped keep demand.

But vitaly nesis, polymetal leader, stated many gold businesses had been failing continually to reward their shareholders with dividend payments, despite increasing gold rates.

It's interesting to observe that lots of silver organizations either consistently pay the minimum dividend or no dividend, he stated. if the silver cost increases the shareholder must be compensated...if a gold organization cant spend a sizeable dividend when gold prices are near $2,000, what exactly is the point of possessing a gold stock?

Silver costs hit an archive most of $2,072 an ounce on august 6 on problems about the influence of the coronavirus pandemic and a growth in negative-yielding bonds. since gold provides no yield to investors, it gets to be more attractive when bond yields tend to be reasonable.

Polymetal insisted covid-19 infections among its staff will never hit its yearly manufacturing target of 1.5m ounces of silver.

It stated it had suspended its olcha mining functions in far-eastern siberia this month after a third of the 164 staff members there tested positive for virus this thirty days. the closure, likely to continue for another 10-14 days, might have no material effect on the companys manufacturing because it had been outperforming its goals, it included.

Employees tend to be under continual health supervision, polymetal said.

The business said it had maintained its price guidance of $659-$750 an ounce as weakness when you look at the rouble and tenge ended up being offset by expenses associated with covid-19 and greater mining income tax.

Polymetal stated adjusted profits before interest, tax, decline and amortisation had increased 53 % to $616m, in accordance with analyst objectives. revenue rose by 21 percent to $1.14bn.

Also raising its commission to people, the organization said it had modified its dividend plan to pay out 50 per cent of adjusted net gain the 2nd half.it stated it could pay up to 100 percent of their no-cost cash flow from 2021 in dividends at the mercy of a web debt-to-ebitda limit of 2.5 times.

We believe this will be a welcome change as it provides greater transparency for people, james bell, an analyst at rbc, said.

Analysts at citi stated polymetals dividend could rise by 65 % next year, putting the stock on track for a dividend yield of 8.5 percent, against 2.6 percent currently.