A detailed look at Polymetal share price

Polymetal International is one of Russia’s largest precious metals mining companies and a top global producer of silver and gold. Polymetal has established itself as a significant player in the precious metals industry by operating mines and development projects across Russia, Kazakhstan, and Armenia. But is Polymetal’s stock a good investment opportunity right now?

This article will explore Polymetal’s share price history, financial performance, and future growth potential to determine if its shares are a wise buy today.

About Polymetal International

Polymetal International PLC is headquartered in St. Petersburg, Russia, and employs over 12,000 people globally. The company was founded in 1998 and has quickly grown into one of the world’s leading precious metals companies. Polymetal operates nine producing gold and silver mines in Russia and Kazakhstan, along with several development projects.

In 2021, Polymetal produced over 1.7 million ounces of gold equivalent, consisting of 1.2 million ounces of gold and 24 million ounces of silver. Its proven and probable ore reserves provide solid long-term growth prospects, with 7.4 million ounces of attributable gold equivalent reserves. 

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Is Polymetal a good share right now?

Over the last several years, Polymetal has been a strong performer operationally and in the markets. It has significantly increased production, revenue, and profits, giving investors stellar returns. With strong operations, rising metals prices, and a history of shareholder returns, Polymetal stock seems poised for more upside.

Additionally, as a Russian company, Polymetal could benefit from sanctions facing competitors and reduced competition, providing it with a dominant domestic market position. If access to Russian metals becomes restricted for Western countries, that would also increase Polymetal’s leverage and pricing control.

However, risks related to the conflict in Ukraine, potential further sanctions, rising costs, and geopolitical tensions have certainly rattled investor confidence recently. The Polymetal share price has seen incredible volatility so far in 2022.

Polymetal share price history

Polymetal debuted on the London Stock Exchange in October 2011 with an IPO price of £7.80 per share. The Polymetal share price trended upwards through 2015, reaching a level of £8.70 by December. Still, shares remained fairly rangebound below the £10 mark over its first four years of public trading.

The major breakout came through 2016 and 2017 as gold prices began climbing from their multi-year lows. By September 2017, the Polymetal share price had rocketed up over 160% in less than two years to hit £22.59. Share continued powering higher, with momentum reaching as high as £23.70 in 2020, just before the COVID-19 chaos rocked markets.

Polymetal managed to recover rapidly after the 2020 selloff. Its share price regained the pre-pandemic high and kept trending upwards, driven by rising production numbers and strong metals pricing. In February 2022, the stock hit its record price of £26.88.

But since Russia invaded Ukraine, the Polymetal share price has been in an almost free fall – a gut-wrenching ride for investors. Over the next two months, the stock plummeted over 66% into the £9 range. Things stabilized through summer 2022, with Polymetal share price fluctuating between £8 and £12.

However, renewed downside volatility has picked up since November 2022, with the stock changing hands around £6 per share. So after returning over 300% in its first decade of public trading, Polymetal has now erased almost all those gains – back trading below its 2011 IPO price.

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What does the future hold for the Polymetal share price?

Such a drastic fall from grace reflects fears over the extensive risks Polymetal faces over sanctions, geopolitical instability, supply chain disruptions, rising costs, and slowing global growth. However, beyond the current crisis environment, Polymetal still exhibits fundamental qualities to deliver shareholder value over the long run.

If tensions begin to ease, sanctions potentially roll back, and inflation stabilizes, then Polymetal would be perfectly positioned to regain lost upside momentum. And with its reserves, low costs, and operational expertise – Polymetal still offers intriguing recovery potential despite all the negativity.

But the overarching reality remains highly uncertain heading into the following years. Polymetal and its share price seem likely to remain under intense pressure until risks tied to Russia and its economy meaningfully recede. Any further sanctions or restrictions targeting the mining sector could inflict additional damage.

And if global recession concerns deepen, that poses threats to metals demand and pricing – headwinds against Polymetal advancing out of its slump anytime soon. But for investors willing to stomach tremendous volatility and geopolitical uncertainty, Polymetal could deliver explosive returns if stability returns. At current prices, shares may appear oversold, presenting patient investors with a chance to buy at bargain levels for the long run.

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Who are the biggest shareholders of Polymetal?

When assessing an investment opportunity, seeing what kinds of investors hold significant ownership stakes can be insightful.

As per the Disclosure Guidance and Transparency Rule, the company’s biggest shareholders in the year 2020 are the following:

• ICT Holding Ltd, a company incorporated and resident in the Republic of Cyprus, directly and indirectly holds 23.9% interest.
• BlackRock, Inc., which directly and indirectly holds a 10.1% interest in the company.
• Fodina B.V. (ultimate controlling person Renáta Kellnerová), which directly and indirectly holds a 3.3% interest in the company

Polymetal share price can be considered more resilient and stable during times of volatility compared to competitors. But, of course, risks still abound.

The bottom line

Polymetal has cemented itself as one of the top global silver and gold producers – delivering tremendous shareholder value over its first decade in public markets. However, the company now faces its biggest challenge: navigating sanctions, supply chain woes, geopolitical chaos, and slowing economic growth.

Yet, beyond the current crises in Ukraine, Polymetal still exhibits an impressive portfolio of high-grade assets, a rising production profile, close ties with major domestic shareholders, and a track record of solid execution.

For investors that can handle extreme volatility and uncertainty, taking a small position in Polymetal could deliver massive returns if economic status returns. But, of course, global recession risks, the potential for harsher sanctions, and ongoing market instability could lead to more losses before any sustained upside.

Just remember, investing in Russian companies at this stage is not for the faint of heart. But Polymetal may offer one of the safest avenues to access discounted valuations and future upside if tensions ease across Eastern Europe.

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