...The `BB' rating reflects PJSC Polyus's `BBB' category business profile, as a top-five gold producer globally with costs comfortably and sustainably in the first quartile of the global gold cash cost curve. Rating limitations include Polyus's product and geographical concentration as well as shareholder concentration and the lack of a record of conservative financial policies. The affirmation reflects Fitch Ratings' view that Polyus's funds from operations (FFO) adjusted leverage will stay around 2.5x on average in 2019-2022. Development capital expenditure for Sukhoi Log from 2021 onwards, while not included in our forecast, could drive leverage towards 3x at the end of the forecast horizon. This would leave sufficient headroom under the rating and supports the Stable Outlook....
