for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

BRIEF-Petropavlovsk's Shareholder Proposes New Dividend Policy

Russian gold miner Petropavlovsk said:

* ITS SHAREHOLDER PROSPERITY CAPITAL MANAGEMENT HAS PROPOSED THAT PETROPAVLOVSK ADOPTS A FORMAL DIVIDEND POLICY

* PROSPERITY HAS PROPOSED ACHIEVING A REGULAR PAYOUT OF 50% OF UNDERLYING NET EARNINGS ON A SEMI-ANNUAL BASIS, SUBJECT TO A HARD CEILING OF A NET DEBT/ADJUSTED EBITDA RATIO LOWER THAN 2.0X

* PROSPERITY HAS ALSO PROPOSED MAKING AN ANNUAL SPECIAL DIVIDEND PAYMENT, BASED, AMONG OTHER FACTORS, ON THE COMPANY’S AVAILABLE FREE CASH FLOW (POST REGULAR DIVIDENDS), FORWARD-LOOKING FINANCIAL PROJECTIONS, MARKET OUTLOOK AND OTHER INVESTMENT REQUIREMENTS

* THE BOARD HAS WELCOMED THE INITIATIVE BY PROSPERITY CAPITAL MANAGEMENT AND AGREES THAT IT IS TIMELY FOR PETROPAVLOVSK TO DEFINE A DIVIDEND POLICY

* SHAREHOLDERS WILL BE INVITED TO DEBATE PROSPERITY’S PROPOSAL AT A MEETING HELD ON JUNE 30

* IN THE LIGHT OF DISCUSSION AT THE AGM THE BOARD WILL FINALISE AND PUBLISH PETROPAVLOVSK’S DIVIDEND POLICY

Source text - bit.ly/37eJwMD

Further company coverage: (Gdansk Newsroom)

Breakingviews

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.


Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up