(Reuters) – The Russian gold mining company, Polymetal International, said it agreed with the largest bank in Russia and Eastern Europe, Sberbank, on a 5-years credit facility worth $400 million on Monday.
The Russian gold miner suffered a sharp decline in profits this year due to the crash in gold and silver prices. Polymetal said that the money would be used to repay existing loans and fund operations.
The loan will extend the maturity on debts of the Russian Polymetal, which sums around $1.3 billion in the next 3 years. This should “underpin” the gold miner strategy of returning free cash flows to shareholders, according to Polymetal CEO Vitaly Nesis.
Polymetal is 4th largest gold producer in Russia, carrying out operations in Russia and Kazakhstan. The precious metal miner Polymetal is listed on the London Stock Exchange and Moscow Exchange.