Polyus Gold set for return to LSE

Polyus Gold set for return to LSE

Russia’s largest gold producing company Polyus Gold will return to the London Stock Exchange (LSE) less than two years after delisting, after making an ‘intention to float’ announcement on the market.

The offering is expected to comprise at least 7% of its issued share capital, inclusive of US$400 million of primary proceeds with the remainder as secondary.

The miner delisted in 2015 amid sanctions imposed by Western institutions following Russia’s annexation of Crimea, but will return to London as it looks to enlarge its position as a global leader in gold mining.

Pavel Grachev, Polyus’s chief executive officer, said: “Polyus is well placed to build on its position as the lowest cost top-10 gold producer globally with a clear strategy for long term, sustainable growth.”

Grachev added that the company aims to move from the 8th largest global gold producer to the 4th largest by 2019.

Polyus increased its gold production by 19% between 2014 and 2016 and expects a further 44% rise by the end of 2019.