Daily analyst comments

Polimetal's IPO could be put on hold


	Norilsk Nickel

Capitalization: 32 726 113 780,10 $

Common shares
Price	171,68 $
Target price	179,00 $

Price changing
week	month	year
-0,1%	2,0%	67,3%

Common shares
Price	171,68 $
Target price	179,00 $

Price changing
week	month	year
-0,1%	2,0%	67,3%


	Polymetal

Capitalization: 4 071 375 000,00 $

Common shares
Price	12,93 $
Target price	8,10 $

Price changing
week	month	year
10,0%	1,0%	61,6%

27.10.05 08:03

Sector: Metals

Polimetal's IPO could be put on hold

State Duma member and the owner of Nafta Moscow Suleiman Kerimov has acquired from East group owners Polimetal, which is Russia's largest silver producer and second largest gold producer. The transaction is valued at $900 mln.

We view this amount as slightly undervalued. If the company is appraised using the comparative method (taking into account the multiples of gold producers), the average estimated market cap is $1.3 bln. It should be noted that Polimetal is primarily a silver maker, which means that a discount was likely applied to the above amount.

For the record, Polimetal had previously considered an IPO on international capital markets or attracting a strategic partner. At present, in our opinion, these plans will be put on hold.

Thus, Polyus, which is to be spun off from NorNickel in early 2006, will likely be the only gold producer represented on the Russian stock market in the near future.

Nataly Kocheshkova

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