OREANDA-NEWS  Against the background of the Polyus management's recommendation to the board of directors to suspend dividend payments until 2030, the shares of Russia's largest gold miner on the Moscow Stock Exchange collapsed by almost a quarter. This is evidenced by the data of the site.

The company's management explains its decision by the high cost of debt financing, rising production costs, including due to an increased tax burden, falling gold prices, and risks of revising the schedule for investment projects in an uncertain environment.

At a minimum, Polyus's securities fell from 1,768 rubles to 1,376 rubles. As of 11:20 Moscow time, they have been adjusted to 1,412 rubles.

Polyus' current dividend policy assumes that at least 30 percent of EBITDA (earnings before taxes, interest on loans and depreciation) for the reporting period will be allocated to dividends. Earlier, following the results of the first quarter, shareholders approved dividends in the amount of 29.05 rubles per share.

Vector Capital analysts assess the announcement as extremely negative for the company, Forbes writes. Before that, the market liked her shares, and many held them just for the sake of dividends. As a result, Polyus may face a further drop in shares if the board of directors approves such a decision.

On the eve of July 7, the Moscow Exchange index updated the minimum since December 2022. According to analysts, the main reason for the unprecedented decline in duration is the negative news background, which does not give investors hope for an improvement in the situation on the stock market and the economy.