Polymetal International plc (POLY)
Polymetal: Report on payments to governments for the year 2022
30-Jun-2023 / 17:00 MSK
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Release time IMMEDIATE LSE, MOEX, AIX: POLY
ADR: AUCOY
Date 30 June 2023
Polymetal International plc
Report on payments to governments for the year 2022
Polymetal International plc issues the report on payments to
governments for the year ended 31 December 2022.
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" or "the Group") for the
year 2022 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.
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 Kazakhstan, which is
calculated based on the value of the precious metals extracted in
the period. In Kazakhstan the value is determined based on the
market price whether or not there were sales during the period.
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. There were no material licence
payments during year ended 31 December 2022 and 31 December
2021.
Rental fees
The land in Kazakhstan on which the Group's production
facilities are located is owned by the state. The Group leases this
land through operating lease agreements. There were no material
rental payments during year ended 31 December 2022 and 31 December
2021.
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.
Cash and in-kind payments
Payments are reported on cash basis. No in-kind payments were
made during years ended 31 December 2022 and 31 December 2021.
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 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 2022
Government
Income tax Mining tax Other Total
mln USD
Kazakhstan 149 52 9? 210
PAYMENTS PER
PROJECT
Entity
Project Income tax Mining tax Other Total
mln USD
Bakyrchik Mining Venture LLC Kyzyl 101 34 6? 141
Varvarinskoye JSC Varvara 37 4 1 42
Komarovskoye Mining Company LLC Komar 11 14 2 27
Total 149 52 9 210
PAYMENTS PER GOVERNMENT
FOR THE YEAR 2021
Government Mining
Income tax Other Total
mln USD tax
Kazakhstan 92 42 11? 145
PAYMENTS PER
PROJECT
Entity Mining
Project Income tax Other Total
mln USD tax
Bakyrchik Mining Venture LLC Kyzyl 74 27 7? 108
Varvarinskoye JSC Varvara 11 2 1 14
Komarovskoye Mining Company LLC Komar 7 13 3 23
Total 92 42 11 145
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* 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 2022
Polymetal paid USUSD 4 million (2021: USUSD 5 million) under this
programme. Enquiries
Investor Relations
Polymetal ir@polymetalinternational.com
Evgeny Monakhov +44 20 7887 1475 (UK)
Kirill Kuznetsov +7 717 261 0222 (Kazakhstan)
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.
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Dissemination of a Regulatory Announcement, transmitted by EQS
Group. The issuer is solely responsible for the content of this
announcement.
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