Polymetal: Report on payments to governments fo...

Polymetal International plc (POLY) Polymetal: Report on payments to governments for the year 2021 30-Jun-2022 / 09:00 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Release time IMMEDIATE   LSE, MOEX, AIX: POLY / ADR: AUCOY Date 30 June 2022 Polymetal International plc Report on payments to governments for the year 2021 Polymetal issues the report on payments to government for the year ended 31 December 2021. INTRODUCTION This Report provides an overview of the payments to governments made by Polymetal International plc and its subsidiary undertakings (hereinafter referred to as “Polymetal”) for the year 2021 as required under the UK’s Report on Payments to Governments Regulations 2014 (as amended in December 2015). These UK Regulations enact domestic rules in line with Directive 2013/34/EU (the EU Accounting Directive (2013)) and apply to large extractive companies, whose securities are publicly listed on a UK-regulated stock market,  that are involved in the exploration, prospection, discovery, development and extraction of minerals, oil, natural gas deposits or other materials. This Report is also intended to satisfy the requirements of the Disclosure and Transparency Rules of the Financial Conduct Authority in the United Kingdom. BASIS OF PREPARATION Legislation This report is prepared in accordance with The Reports on Payments to Governments Regulations 2014 as enacted in the UK in December 2014 and as amended in December 2015. Reporting entities This Report includes payments to governments made by Polymetal. Payments made by entities over which Polymetal has joint control or significant influence are excluded from this Report. Activities Payments made by Polymetal to governments arising from activities involving the exploration, prospection, discovery, development and extraction of minerals are disclosed in this Report. It excludes payments related to refining activities made to the refineries owned by the government agencies and any payments which are not directly attributable to the production and exploration activities. Government Government includes any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a government. Project Payments are reported at project level except that payments that are not attributable to a specific project are reported at legal entity level. Project is defined as operational activities which are governed by a single contract, or licence agreement, and form the basis for payment liabilities with a government. If such agreements are substantially interconnected, those agreements are to be treated as a single project. “Substantially interconnected” means forming a set of operationally and geographically integrated contracts, or licence agreements that are signed with a government giving rise to payment liabilities. Indicators of integration include, but are not limited to, geographic proximity, the use of shared infrastructure and common operational management. License agreements are aggregated for the purposes of reporting as a single project only when those legal agreements have substantially similar terms and are both geographically and operationally integrated. Payments The information is reported under the following payment types: Income taxes These are taxes paid by Polymetal on its income and/or profits in accordance with legislation enacted in the applicable jurisdiction. Payments are reported net of refunds. Value added tax, personal income taxes, social taxes, property taxes are excluded. The maximum income tax in Russia is set at a rate of 20% and is allocated between federal budget and the budgets of the relevant constituent regions. In 2021 and 2020 the following proportion was applied: 3% allocated to the federal budget, whereas 17% allocated to the regional budgets. From 1 January 2017 Omolon Gold Mining Company LLC and Magadan Silver JSC are entitled to the decreased statutory income tax rate of 17% for the operations held in the Special Economic Zone of the Russian Far East, as well as decreased mining tax rate (paying at 60% of the standard mining tax rates). In return for obtaining this tax relief the members of the regional Special Economic Zone are obliged to invest 50% of their tax savings each year in the Special Economic Zone Development Program. From 1 January 2016 Svetloye LLC was subject to tax relief as a participant in a Regional Investment Project and was entitled to decreased mining tax rates and the statutory income tax rate of 0% up to 2021. In Kazakhstan income tax is set at a rate of 20% and there is no allocation for regional or local income taxes in this country. Mining tax Mining tax is a royalty payable in Russian Federation and Kazakhstan, which is calculated based on the value of the precious metals extracted in the period. In Russia this value is usually determined based on the realised selling price of precious metals or, in case if there were no sales during the period, cost of production of metals extracted. In Kazakhstan the value is determined based on the market price whether or not there were sales during the period. Mining tax in Russia is levied at federal level, and then is reallocated between federal and respective regional budgets based on the following proportion: 40% of total tax collected is transferred to the federal budget, 60% to regional budgets. Mining tax and royalties in Kazakhstan are levied at republican level. Licence fees These are fees and other sums paid as consideration for acquiring a licence for gaining access to an area where extractive activities are performed. Administrative government fees that are not specifically related to the extractive sector, or to access to extractive resources, are excluded. Rental fees The land in the Russian Federation and Kazakhstan on which the Group’s production facilities are located is owned by the state. The Group leases this land through operating lease agreements. Other payments Other payments include enviromental emission fees, and also payments made and social commitments in accordance with subsoil contracts attributable to the Kyzyl project and investment in the Special Economic Zone Development Program of Omolon Gold Mining Company LLC and Magadan Silver JSC. Cash and in-kind payments Payments are reported on cash basis. No in-kind payments were made during years ended 31 December 2021 and 31 December 2020. Materiality Level Any payment, whether made as a single payment or as a series of related payments, below GBP 86,000 within a financial year is excluded from this Report. Payments made to governments by joint ventures or associates of the Group in proportion to the company’s interest in the respective venture or associate are insignificant to this Report based on materiality level set. Exchange Rate Relevant payments are made by Polymetal in Russian Rubles and Kazakh Tenge and for the purpose of this Report are translated to the US Dollar based on the foreign exchange rate at the relevant monthly average rate. PAYMENTS PER GOVERNMENT FOR THE YEAR 2021 Government  000’$ Income tax Mining tax Rental fees Licence fees Other Total Kazakhstan  91,712   41,870   -   -   10,8081   144,390  Russia  123,407   92,965   4,734   175   18,7552   240,036  Total  215,119   134,835   4,734   175   29,563   384,426  PAYMENTS PER PROJECT Entity  000’$ Project Country/ Government Region Income tax Mining tax Rental fees Licence fees Other Total Bakyrchik Mining Venture LLC Kyzyl Kazakhstan n/a  73,975   27,325   -   -   7,4081   108,708  Varvarinskoye JSC Varvara Kazakhstan n/a  10,919   1,540   -   -   523   12,982  Komarovskoye Mining Company LLC Komar Kazakhstan n/a  6,818   13,005   -   -   2,877   22,700  Gold of Northern Urals CJSC Voro Russia Svedlovskaya oblast’  8,617   4,985   138   -   -   13,740  Saumskaya Mining Company LLC Saum Russia Svedlovskaya oblast’  2,880   1,481   -   -   -   4,361  Svetloye LLC Svetloye Russia Khabarovskiy Kray  -   5,389   443   -   -   5,832  Magadan Silver JSC Dukat Russia Magadanskaya oblast’  49,270   24,172   694   -   10,3602   84,496  Mayskoye Gold Mining Company LLC Mayskoye Russia Chukotka Autonomous Okrug  4,886   18,605   -   -   -   23,491  Omolon Gold Mining Company LLC Omolon Russia Magadanskaya oblast’  29,001   14,285   534   175   8,0082   52,003  Albazino Resources Ltd Albazino Russia Khabarovskiy Kray  29,626   24,821   1,225   -   251   55,923  GRK Amikan LLC Veduga Russia Krasnoyarskiy Kray (873)3  (773)3   294   -   -  (1,352)3  South-Verkhoyansk Mining Company JSC Nezhda Russia Yakutia  -   -   305   -   136   441  Kutynskaya Mining Company LLC Kutyn Russia Khabarovskiy Kray  -   -   1,101   -   -   1,101  Total  215,119   134,835   4,734   175   29,563   384,426  ______________________ 1 In accordance with a memorandum with East-Kazakhstan Oblast Administration (local Kazakhstan government) Polymetal participates in financing of certain social and infrastructure development project of the region. During the year ended 31 December 2021 Polymetal paid $4,598 thousand under this programme. 2 Includes payments under Special Economic Zone Development Program of $7,930 thousand for Omolon Gold Mining Company LLC and $10,325 thousand for Magadan Silver JSC. 3 During the year ended 31 December 2021 GRK Amikan LLC received reimbursement of income and mining taxes from tax authorities that were paid during previous periods. PAYMENTS PER GOVERNMENT FOR THE YEAR 2020 Government  000’$ Income tax Mining tax Rental fees Licence fees Other Total Kazakhstan 87,813  39,241  -  3,668  8,7711  139,493  Russia 158,843  86,066  2,588  1,220  12,6682  261,385  Total 246,656  125,307  2,588  4,888  21,439  400,878  PAYMENTS PER PROJECT Entity  000’$ Project Country/ Government Region Income tax Mining tax Rental fees Licence fees Other Total Bakyrchik Mining Venture LLC Kyzyl Kazakhstan n/a 55,177  29,396  -  3,668  6,9971  95,238  Inter Gold Capital LLC Kazakhstan n/a 118  -  -  -  -  118  Varvarinskoye JSC Varvara Kazakhstan n/a 28,707  -  -  -  605  29,312  Komarovskoye Mining Company LLC Komar Kazakhstan n/a 3,811  9,845  -  -  1,169  14,825  Gold of Northern Urals CJSC Voro Russia Svedlovskaya oblast’   27,298    10,016    -    -    497    37,811  Svetloye LLC Svetloye Russia Khabarovskiy Kray -  2,504  354  592  -  3,450  Magadan Silver JSC Dukat Russia Magadanskaya oblast’   38,962    16,995    665    628    7,1762    64,426  Mayskoye Gold Mining Company LLC Mayskoye Russia Chukotka Autonomous Okrug   13,975    17,288    -    -    -    31,263  Omolon Gold Mining Company LLC Omolon Russia Magadanskaya oblast’   41,148    13,427    262    -    4,7942    59,631  Albazino Resources Ltd Albazino Russia Khabarovskiy Kray   36,239    23,980    703    -    201    61,123  GRK Amikan LLC Veduga Russia Krasnoyarskiy Kray   1,221    1,856    285    -    -    3,362  South-Verkhoyansk Mining Company JSC Nezhda Russia Yakutia   -    -    319    -    -    319  Total 246,656  125,307  2,588  4,888  21,439  400,878  ______________________ 1 In accordance with a memorandum with East-Kazakhstan Oblast Administration (local Kazakhstan government) Polymetal participates in financing of certain social and infrastructure development project of the region. During the year ended 31 December 2020 Polymetal paid $4,576 thousand under this programme. 2 Includes payments under Special Economic Zone Development Program of $4,492 thousand for Omolon Gold Mining Company LLC and $6,465 thousand for Magadan Silver JSC. Enquiries Investor Relations Polymetal Evgeny Monakhov Timofey Kulakov Kirill Kuznetsov [e-mail] [phone] (UK) [phone] (Russia) Forward-looking statements This release may include statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “should” or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company’s control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company’s present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company’s actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

ISIN:	JE00B6T5S470
Category Code:	PGR
TIDM:	POLY
LEI Code:	213800JKJ5HJWYS4GR61
OAM Categories:	1.3. Payments to governments
Sequence No.:	171563
EQS News ID:	1387069

End of Announcement	EQS News Service