GV Gold Board of Directors approves new dividend policy
The Board of Directors of GV Gold (Vysochaishy, PJSC), together with its subsidiaries ("GV Gold", "Vysochaishy" or the "Company"), one of the largest and fastest growing gold producers in Russia, has approved the Company’s new dividend policy. This new policy further enhances dividend proposition of GV Gold vis-à-vis industry best practices.
Vladislav Barshinov, CEO of GV Gold, commented:
“Our operating and financial performance – and cash flow in particular – has been driven by the measures we have been taken to increase ore processing volumes at the strategic growth projects Taryn and Ugakhan, as well as by macro factors. Stronger cash flow gives us greater scope to increase the dividend distribution, while at the same time continuing to invest in development projects. This has underpinned our consistently high dividend payments in recent years with the payout ratio reaching almost 40% of EBITDA for the first nine months of 2020. Already on track with such ambition, we are now formalising it with the new dividend policy.”
The new version of the Dividend Policy reflects actual changes to the terms of the Company's dividend payments. Payments will vary depending on the Company’s leverage and with account of the Company’s capex requirements to execute new strategic projects:
· The Company is targeting a dividend payment of 40% of EBITDA, provided that the net debt to EBITDA ratio is lower than or equal to 1.5x.
· The Company plans to allocate 30% of EBITDA to dividend payments, if the net debt to EBITDA ratio is higher than 1.5x but lower than or equal to 2.5x.
· The Company plans to allocate up to 20% of EBITDA to dividend payments, if the net debt to EBITDA ratio is higher than 2.5x but lower than or equal to 4.0x.
If the Company’s liquidity position, capex and equity to debt ratio allow, the Board of Directors may consider making special dividend payments, as long as this does not conflict with the Company's current liabilities.
About the Company
GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2019, the Company produced 260 koz of gold, becoming the 8th largest gold miner in Russia. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.
Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates four mines with a total capacity of 10 mtpa of ore and holds 34 mining and exploration licences.
The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).For further information, please visit http://gvgold.ru