Page 100 - RusRPTNov20

Nesis suggested. ​Interfax reported on 12 October, that while talking to journalists, Mr. Nesis said that the company could be admitted to GDX, one of the main gold equity ETF indices. The conclusion of the US elections and fewer geopolitical risks are the main reasons for Polymetal’s potential inclusion in GDX, Mr. Nesis noted. The latest GDX revision took place earlier this month and was announced on Sunday, 11 October. Neither Polymetal nor Polyus have ever been part of GDX, while Highland Gold is in GDX with a weight of 0.46%. Finding its place in GDX between Kinross and B2Gold based on market capitalization. If admitted to GDX today, Polymetal’s potential position could be between Kinross Gold and B2Gold based on market capitalization, we estimate. Given Kinross Gold’s market capitalization of $11.5bn and GDX weight of 3.69% and B2Gold Corp’s market capitalization of $11.5bn and GDX weight of 2.34%, we estimate that Polymetal’s GDX weight could be in the region of 2.7-2.8%. Inclusion in GDX should be positive for Polymetal’s investment case, we consider.
Acron​ has increased its quasi-treasury shareholding to 7.8%, reducing the free-float from 7.5% to 6.2%.​ Hence, one of the key issues of the stock, lack of liquidity, has gotten worse. As little as USD 0.6mn of AKRN stock is traded per day (6-mo average). If the free-float were to remain below 7% for the next 6 months, it could be excluded from the first level MOEX listing – although this unlikely would lead to any material outflows (the stock would become unavailable for pension funds, but there is already little interest from that type of investor). Nevertheless, Acron's stock continues to provide one of the highest dividend yields (5.7% NTM) and show the best performance in the sector (+4% YTD: the only positive in dollar denomination terms, and +31% YTD in rouble terms). However, this could also be supported by recent purchases for quasi-treasury holdings (4.2% have been purchased since the beginning of the year).
Surgutneftegaz​’ Board of Directors has approved the sale of treasury shares at a price not lower than their market value, ​according to the company. The shares in question were acquired by Surgutneftegas last year from owners which the company had failed to identify for a long time. The company’s treasury stake amounts to around 1.1mn shares, which are worth some USD 0.5mn at current market prices. This amount is immaterial for the company, so we treat this news as not market-moving.
Russian residential real estate company Samolet is getting ready to IPO​. The value of all assets of the Samolet group exceeded RUB200bn according to Cushman & Wakefield. The document says that the value of the company's portfolio, which currently exceeds 15mn square meters, amounted to RUB176.9bn and general contracting agreements were estimated at RUB9bn. Previously, the developer only reported on the value of its portfolio: at the end of 2019, according to JLL, the company had 12.1mn sq. m of residential real estate, it was estimated at RUB117.5bn.
100 ​RUSSIA Country Report​ November 2020 www.intellinews.com