PJSC Polyus Gold said Oct. 7 that it is planning to pay semi-annual dividends equal to 30% of its EBITDA, provided that the net debt to adjusted EBITDA ratio for the last 12 months is lower than 2.5x.

Should the ratio exceed 2.5x, the board will exercise discretion on the dividends.

The first dividend payout in accordance with the new dividend policy is expected in the first half of 2017, based on second-half 2016 results.

Polyus also cut its net debt to US$3.24 billion as of end-September, trimming US$228 million from the US$3.47 billion as of the end of the first half.

Following a strong delivery at Olimpiada, Blagodatnoye, Verninskoye and Kuranakh, the Russian gold miner upgraded this year's production guidance to 1.87 million to 1.90 million ounces, higher than the previous guidance of up to 1.80 million ounces and its 2015 production of 1.76 million ounces.

Polyus is looking to achieve, by 2020, an annual production of at least 2.7 million ounces of gold.