Kazakh Goldmine for $500 Million by Russia’s Polymetal

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(Reuters) – Russia’s gold and silver miner Polymetal intends to shop for an out-sized gold mine in neighboring Asian nation for up to $500 million, around simple fraction of that may be paid with the firm’s shares, daily Kommersant same on Thursday, citing sources.

The Bakyrchik deposit, that has gold reserves of 5.8 million troy ounces, is presently in hand by President Nursultan Nazarbayev’s having relative-in-law Timur Lenk Kulibayev.

Polymetal, part-owned by Russian business leader Alexander Nesis, might pay $200 million of the sale value with its own shares, thereby handing Kulibayev a 5% stake within the company in keeping with its current capitalization, Kommersant same.

The company declined to comment once contacted by Reuters.

Such a deal would be Polymetal’s 1st giant acquisition in four years.

Sberbank analysts noted “Given the operational risks and our pessimistic outlook on the gold value within the medium term, the valuation of the deal appearance high,”