Polymetal International PLC

Polymetal International PLC (LON: POLY) is an FTSE 100 index listed Company, which has a portfolio of nine producing gold and silver mines.

On 2 March 2022, Polymetal recommended a final dividend of USD 0.52 per share for the year ended 31 December 2021. The share will go ex-dividend on 5 May 2022, while the payment date is 27 May 2022.

Investment Rationale – SELL at GBX 1,400.00

• Investors’ Fears: The Company’s shares may plunge as investors were ready to dump anything linked with Russia.
• Mixed Financial Results: Polymetal reported a resilient financial result. For FY21, revenue increased by 1% year-on-year; net earnings were 15% down year-on-year. Adjacently, net debt increased by 22%.
• Geo-Political Tension: The ongoing conflict in Ukraine is still evolving and uncertain; however, the Group has reiterated its production guidance of 1.7 Moz of GE for FY 2022.
• Technical Indicator: From a technical standpoint, the 14-days RSI stood at ~62.60, approaching an overbought territory.

Share Price Chart

 (Source: REFINITIV; Analysis done by Kalkine Group) 

Conclusion                                

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Based on the Russia exposure, geopolitical tensions, and unfavourable technical indicators, we have given a “SELL” recommendation on Polymetal International PLC at the current market price of GBX 1,400.00 (as of 07 March 2022 at 08:41 AM GMT). 

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Note 3: Dividend Yield may vary as per the stock price movement.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

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