In our news feed, we inform you quite often about new innovative instruments available for trading on our platform. However, scarcely one of them can compete with gold in terms of reliability and popularity. The good thing is that there is no need to spend the whole day googling info about companies engaged in gold mining. We have already done it for you. After carefully studying the advantages and prospects of various gold companies, we came across PJSC Polyus. This company is the largest gold producer in Russia and one of the top ten gold mining companies by output worldwide.

Polyus owns large gold reserves that always bring high yields. It is the world's fourth-largest gold miner by production. Analysts assume that Polyus has excellent development prospects for the next 10 years. It is likely to expand more than other Russian gold miners even in the event of a sharp drop in gold.

That is why we are going to discuss the company's main activities in detail as well as the attractiveness of its shares and give some pieces of advice on how to buy them.

History

Polyus is a leading gold producer in Russia. It is among the top 3 largest gold mining companies in the world in terms of reserves and production volumes. The company is mainly engaged in the extraction, processing, and distribution of gold, as well as geological exploration and evaluation of mineral reserves in Russia.

Polyus was officially founded in 2006. However, it started operating a bit earlier. The impetus for its establishment was organizational transformations that took place in the 1970s in gold mining in Russia. In 1993, Polyus became a closed joint-stock company. In 2002, it was acquired by the industry giant - Norilsk Nickel. At that time, Polyus was already the leading gold miner in Russia, accounting for more than 15% of the total production of gold in the country. In March 2006, Polyus was founded as Polyus Gold as a result of a spin-off from the gold assets of Norilsk Nickel. Notably, even then, the market cap of Polyus was $8 billion. Finally, in 2011, Polyus Gold International Limited holding emerged, having become the holder of all the main assets. Nowadays, Polyus’ main assets are located in Siberia and the Russian Far East. The largest ones operate in Krasnoyarsky Krai, namely the Yakutia, Irkutsk, Magadan, and Amur regions. The company is headquartered in Moscow.

Polyus shares

Currently, Polyus stocks are one of the most attractive investments in comparison with other gold mining companies. The company's shares are traded under the ticker PLZL on the Moscow and London Stock Exchanges.

When acquiring Polyus shares, investors own shares in a company's stock. They can make a profit on the shares in two ways: on price swings or by receiving dividends.

If you want to buy Polyus shares, you need to open a live account with a broker that provides access to the largest exchanges. It will not take much time. For example, you will spend only 3 minutes opening an account with InstaForex.

The minimum lot size is one share. To calculate the income, use the Forex calculator on InstaForex website.

Dividends

The amount of dividend payments to the company's shareholders is determined after the evaluation of the earnings report, as well as the financial indicators. After that, the Board of Directors decides on the size of payments as part of the company's profit.

The dividend yield of Polyus shares, expressed as a percentage, is the amount per share an investor receives when the dividend is paid at the current market price.

The shareholders of Polyus receive dividends twice a year. At the same time, the company's dividend policy can be revised. In addition, the shareholders can receive special dividends. As a rule, the more often a company makes payments to shareholders, the more reliable it is.

Investors who receive dividend payments are added to the register of shareholders.

Dividend payments are taxable income regardless of the way they were transferred to the shareholder of the company.

Factors impacting Polyus shares

  1. Despite the fact that the global economy is currently coping with the consequences of the coronavirus crisis, gold mining companies have greatly benefited from the pandemic. Shares of such companies skyrocketed. Since March 2020, when the World Health Organization declared the novel coronavirus (COVID-19) outbreak a global pandemic, Polyus shares have surged by 92.06%.
  2. Gold is also sensitive to changes in the oil market and in the quotes of other precious metals*. On top of that, like the US dollar and other reserve currencies, gold is a safe-haven asset. As a rule, if the exchange rate of one of the reserve currencies falls against its rivals, then gold instantly increases versus that currency.
  3. Selling or buying stocks is much easier and more affordable than buying huge chunks of gold that require a special place for storage. At the same time, the commissions of brokerage companies are several times lower compared to a 20% fee paid by investors when buying gold. Last but not least, investors may receive regular dividend payments from gold mining companies.
  4. Of course, when gold gains bullish momentum, the shares of gold mining companies rise exponentially. Today, the price of the company's shares correlates with gold prices, which is confirmed by multiple asset charts. That is why demand for Polyus shares is highly likely to rise in times of geopolitical tensions and instability that currently gripped markets.

Keep close tabs on Polyus developments and the state of the gold mining industry around the world in real-time with the help of the FOREX ANALYSIS & REVIEWS section on InstaForex website.

Conclusion

Investors may rely on steady and lucrative payments taking into account the dividend policy and financial results of PJSC Polyus.

Currently, the precious metals market and gold, in particular, continue to grow steadily. To this end, analysts’ long-term outlooks are mostly bullish.

Polyus shares have every chance for a further increase and revival to all-time highs. In addition, analysts also recommend adding shares of this company in long-term portfolios.

If you have firmly decided to buy Polyus shares, go to InstaForex website and open a live account. It will not take much time.