Vesting of the 2017 performance share plan awards

Polymetal announces that 2017 share awards under the Company’s Performance Share Plan (“PSP”), part of the Company’s Long-Term Incentive Plan, have vested.

During the four-year performance period ending 19 April 2021 for the PSP awards made in 2017, Polymetal achieved a positive absolute Total Shareholder Return (“TSR”) of 105.0% and outperformed a median TSR of 25.4% of the FTSE Gold Mines Index constituents. As a result, Polymetal ranked 6^th by TSR out of 45 index participants.

Accordingly, the 2017 performance share awards have vested with 103.0% of the total awards being granted, which includes 86.9% vesting percentage based on the TSR performance and additional share awards for the dividend equivalent paid during the 4-year performance period.

1,575,196 ordinary shares were issued and distributed to 259 participants of the PSP on 21 and 22 April 2021, representing 0.33% of the Company’s increased share capital. The newly issued shares have a market value of US$34.7 million, based on the closing price as of 20 April 2021.

“2020 was an exceptional year with massive challenges requiring outstanding performance to stay on track. Polymetal is proud to reward 259 employees whose dedication and competence drove sector-leading shareholder returns”, said Vitaly Nesis, Group CEO of Polymetal.

Performance Share Plan

Under the PSP, awards are released following a four-year performance period (with an additional mandatory holding period of one year following vesting), subject to certain performance measures being met. The vesting of awards is based on the Company’s TSR measured against the TSR of the FTSE Gold Mines Index constituents, as well as the Company’s absolute TSR over the same performance period. The vesting conditions were set as follows:

• 0% vests for below median performance;

• 20% vests at median performance;

• 100% vests at top decile performance and above; and

• Straight line vesting in between median and top decile.

• No award vests if an absolute TSR is negative even if performance is above median.

No consideration is payable for the vesting of the awards by the beneficiaries. In certain cases of Good Leaver Circumstances, the award will usually vest as normal in accordance with the terms of the award. Alternatively, the Board may determine that the award will vest immediately. For more details on the PSP, please see Polymetal’s 2020 Annual Report and Accounts available on the Company’s website at www.polymetalinternational.com. Further to the 2017 award vesting, shares transferred to the Group CEO and Persons Discharging Managerial Responsibilities (“PDMRs”) are presented in the table below:

Further to the 2017 award vesting, outstanding awards under the PSP are: 

Applications have been submitted to the London Stock Exchange and UKLA on the official list and awarded shares are expected to be admitted to trading on the London Stock Exchange on 27 April 2021. The total issued share capital of the Company will comprise 473,556,152 ordinary shares of no par value, each carrying one vote.