| VLADIVOSTOK, Russia
VLADIVOSTOK, Russia Russia's largest gold producer Polyus PLZL.M is considering placing global depository receipts (GDRs) in London in the future, its chief executive said on Friday, less then a year after it left the London market.
Polyus, controlled by the family of Russian tycoon Suleiman Kerimov, delisted shares of its Jersey-registered parent company from the London Stock Exchange (LSE) in late 2015 amid Western sanctions imposed on Moscow.
"We consider the possibility of placing depository receipts in (the) future," its Chief Executive Pavel Grachev told Reuters on the sidelines of a business conference in Vladivostok, when asked if the company could return to London.
The company is preparing for the placement of 5 percent of its shares on Moscow Exchange as it needs to raise its free float to at least 10 percent from five percent to meet a requirement of Moscow Stock Exchange.
Polyus is planning a public deal with either existing or new shares and the placement is expected towards the end of this year or early next year, Grachev said. The funds from the placement will go to Polyus.
In the first half of the year, Polyus financed a $3.4 billion (2.56 billion pounds) buyback of shares from its controlling shareholder. As a result its net debt jumped to $3.5 billion at the end of June, from $364 million at the end of 2015.
Grachev said that Polyus did not see any need to refinance this debt now, adding "We have quite comfortable repayment schedule, the main weight of its is after 2021."
The CEO also said that Polyus' 2016 gold production may exceed its previously announced range of 1.76-1.80 million of troy ounces.
(Writing by Polina Devitt; Editing by Katya Golubkova and Alexander Smith)