POLYMETAL INTERNATIONAL: Decoupled from Gold Price – Reiterate BUY

Gold has rallied 10% since mid-July, but Polymetal shares have lagged the FTSE Gold Index by 12%. We believe this is a result of the market overreacting to the share-overhang risk related to Otkritie. We still regard gold as a safe haven, and anticipate that the price will average $1,350/oz in FY18 on global economic uncertainty stemming from North Korea tensions, US policies, and S&P bubble concerns. Polymetal trades at 5.5x EV/EBITDA when adjusted for Kyzyl – a 90%-completed growth project whi...