Polyus Plunges as Gold Has Biggest Decline Since 1980

Polyus Gold International Ltd. (PGIL), Russia’s biggest gold producer, sank as the metal tumbled the most in 33 years amid a slowdown in Chinese growth.

Global depositary receipts of Polyus fell 5.1 percent to $2.95 by 3:41 p.m. in New York to the lowest price since Aug. 30. Polyus dropped 5.1 percent to 198 pence in London, or $3.03, the biggest decline since its listing in June 2012. Trading volume rose to 15 times the daily average for the past three months in New York, data compiled by Bloomberg show. Gold futures for June delivery slumped 9.3 percent to $1,361.10 an ounce on the Comex in New York, falling the most since March 17, 1980.

“If gold fails to recover really fast, the stock price may plunge further,” Vladimir Sergievskiy, an analyst at Barclays Plc in London who rates the stock the equivalent of buy, said by phone. “The stock has been holding up pretty well so far, given the collapse in gold prices.”

Gold tumbled today after dropping into a bear market last week as government data showed China’s economy unexpectedly lost momentum in the first quarter, expanding 7.7 percent from a year earlier. That compares with the 8 percent median forecast in a Bloomberg survey and 7.9 percent in the prior quarter. Separate reports bolstered speculation that growth in the U.S, the world’s biggest economy, is slowing.

To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at eobrien6@bloomberg.net

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