Polymetal (LON:POLY) to Lose Its London Stock Exchange Listing
Polymetal shares are up 1.86 per cent at the close of trading on Monday, but spiked up more than 20 percent earlier in the session. The company’s management declined to comment on the LSE’s decision. Instead, they announced that their chairman Ian Cockerill has resigned. The metals mining company has seen huge losses in recent months, falling more than 80 per cent in ten days.
Shares of polymetal london stock exchange collapsed after the February 24 invasion
Shares of the mining company Polymetal International (LON:POLY) collapsed following the Russian invasion of Ukraine on February 24. The stock had been the most popular among retail investors, but since the Russian incursion, it has become virtually worthless. The company generates most of its revenue from selling gold to Russian banks, which then resell the metal in international markets. But after the February 24 invasion, Polymetal’s business may no longer be viable, as it will be forced to rely on the central bank of Russia, which has begun to purchase gold domestically again after a two-year hiatus. At the moment, the central bank of Russia is holding $153 billion worth of gold, about a fifth of the country’s financial reserves.
As one of the largest global gold and silver producers, Polymetal is listed on the London Stock Exchange. However, the company has been experiencing huge losses recently, with the stock tumbling by 80 per cent in the last ten days. The company’s management and board have considered delisting a possibility.
Its ESG score
The Environmental, Social and Governance (ESG) score of a company is a comprehensive assessment of its sustainability performance and social impact. The scores are used by investors to gauge companies’ overall social, environmental, and economic risks. This includes risk related to health, safety, and governance. In addition, companies are ranked based on their overall ESG score.
There has been a lot of speculation about the future of Polymetal, a Russian mining company, and its chances of regaining its LSE listing. While the company is headquartered in Jersey, the bulk of its operations are in Russia. Although the company was once freely traded on the LSE, it was eventually reclassified as a Russian-linked security and most brokers blocked it from trading. However, some brokers continue to accept the company’s shares and there is still some volume. However, its liquidity is very low.
Its growth potential
Polymetal’s revenue rose by 4% in March, thanks to higher gold prices. However, the company’s share price is also tied to the prospects for peace in Ukraine. A prolonged conflict in the region is not in anyone’s best interest. In addition, sanctions imposed on Russia are hurting Western energy prices. If the hostilities end soon, Polymetal’s share price will rise.
While it’s not directly said what is meant is that USG has got things wrong here but arguing with City Hall doesn’t work. So, AUCOY and POYYF are suspended. It’s possible for holders to just sit tight and wait. Or, apply to collect the underlying. That would be POLY listed in London.
In comments on an earlier piece it appears that many to most American brokers aren’t allowing trading in POLY – presumably under the same mistake about the law. This is not a recommendation for these specific brokers but from what I know both Hargreaves Lansdown and AJ Bell in London are allowing trading. This is more an inference from the fact that Polymetal still appears on their lists of most traded stocks by their customers. Whether they’ll trade for American citizens, sorry, just don’t know, it will be necessary to try and find out.