Will Polymetal International PLC surge higher than Glencore PLC and Anglo American plc after today’s news?

Does Polymetal International PLC (LON:POLY) (POLY.L) have more investment upside than Glencore PLC (LON:GLEN) (GLEN.L) and Anglo American plc (LON:AAL) (AAL.L)?

Polymetal International PLC
Polymetal International PLC

Polymetal International PLC (LON:POLY) (POLY.L) has released two pieces of news today, with its share price falling by around 5% at the time of writing.

The first is news of an agreement with the Russian Copper Company (RCC) for an all-share exchange of Polymetal’s Tarutin property in Russia for 85% of RCC’s East Tarutin property in Kazakhstan.

The transaction will see Polymetal receive 85% of LLP Tarutinskoye, which is the licence holder for the copper-gold East Tarutin deposit located in Kazakhstan. In exchange, the company will transfer 100% of Vostochny Basis LCC, which is the license holder for the copper-gold Tarutin deposit in Russia.

According to Polymetal, East Tarutin represents a better fit for the business in terms of logistics and the potential size of reserves.

The second piece of news released by the company today is that it has completed the previously announced acquisition of a 45% stake in the Prognoz silver property. It has been purchased from Polar Acquisition for a total consideration of $72 million. This will be paid for through the issue of just over 6.3 million new ordinary shares in the company.

In the last year the Polymetal share price has fallen by 41%. That’s a worse performance than other mining stocks such as Glencore PLC (LON:GLEN) (GLEN.L) and Anglo American plc (LON:AAL) (AAL.L). Glencore has gained 12%, while the Anglo American share price is up 44% over the same one year time period.

In my view, Polymetal has investment appeal for the long run. I feel that the company has a solid strategy to deliver improving operational and financial performance over the coming years.

Alongside, this, the prospects for the gold price remain positive in my view. Increased volatility in global stock markets plus the potential for higher inflation could lead to stronger operating conditions for the sector over the medium term.








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Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email info@investomania.co.uk or use one of the other contact methods available on the 'Contact Us' page