Petropavlovsk Share Discussion Threads

[qs99] 27/10/2016 10:31

yes indeed...perked up and bid now higher than I have seen it for a while IMO

[tsmith2] 27/10/2016 10:28

Anyone else get feeling news is imminent...

[deanroberthunt] 27/10/2016 10:10

clear 9p and it's party like it's 1999

[deanroberthunt] 27/10/2016 05:16

obvious really, but need Gold price higher, over $1400 and Debt down, then it's game on.....but if that transpires the share price will already by significantly higher....so you sometimes have to take a punt with foresight rather than hindsight....and if you get it wrong, move on.

[stoopid] 26/10/2016 15:44

Well, here is hoping but mid term updates are normally minimal affairs....

[wallywoo] 26/10/2016 15:23

Stoopid, I am expecting several bits of news, that are all related:

1) The debt / banking agreement needs to be finalised by 31/10. Technically they would be in default if they do not announce before then.

2) The progress on the acquisition (dependant on the above)

3) Q3 Production figures

[stoopid] 26/10/2016 14:27

What makes you think we will see any news apart from a brief update this month?

[laptop15] 26/10/2016 13:40

Haha... your dead right dean, the gold rush is definitely coming! Think the market will start to rock as the new year approaches....too much uncertainty coming...imo!! In gold we trust :)))

[deanroberthunt] 26/10/2016 09:23

resistance is futile, negotiation is irrelevant, Gold over $2000 as the wider macro economic bubble bursts after 8 years of printing money and zero or negative interest rates in which the european banks can't scratch a living....the rush to gold is imminent.

[laptop15] 26/10/2016 08:41

Haha.. yeah your probably right, back up now :)) wonder when the news will come? Must be very soon now!

[wallywoo] 26/10/2016 08:21

SP is 8.04p to buy, 7.5p to sell. It is a common occurrence for the first 40 mins or so to have a large spread. Mkt makers need to pay for their christmas bash, and catch out un aware private investors!

[laptop15] 26/10/2016 08:16

Very strange share price movements here guys, big drop on the opening show, no volume and no news.....very strange!! Maybe MM's are playing tricks??

[sorcery] 25/10/2016 14:09

Does anyone know why the top left graph in the introduction is not the share price I see in my advfn portfolio? Am seeing the price there as 7.501 at 14:10 24/10.

[dan554] 25/10/2016 13:00

Quiet is good , nothing bad they can say right now so they are going to be closing shorts before they get caught out.

[qs99] 25/10/2016 12:33

Thanks for this. Any other views seems v quiet?

[grbaker] 25/10/2016 11:24

IRC news out (2016 Third Quarter Trading Update Announcement and associated 2016 Third Quarter Trading Update Presentation), not exactly reassuring reading re the US$26 million debt payments due on 20 December 2016 (they state their unaudited cash balance at the end of the third quarter of 2016 was US$14.6 million):






Therefore, unless they get some debt relief or payments in, from CNEEC (under the performance bond) or from General Nice, they cannot meet the $26 million payment...

Just to remind everybody, this is from POG's last Annual Report:

"
Petropavlovsk continues to provide
a guarantee to the Industrial and Commercial
Bank of China (‘ICBC’) in respect of the
US$340 million loan facility, of which
c.US$276.25 million was outstanding at
31 December 2015, provided to KimkanoSutarsky
Mining and Beneficiation Plant LLC
(‘K&S’) by ICBC (the ‘ICBC Facility’) to fund
the construction of IRC’s mining operations
at K&S.
"
[Page number 27 in PDF, page 29 actual]

and

"
4. IRC Related risks
Funding may be demanded
from Petropavlovsk under a
guarantee in favour of ICBC

The Company has a 35.83% interest
in IRC, a Hong Kong Listed iron ore
producer.

Petropavlovsk has provided a guarantee
against a US$340 million project loan
facility provided to K&S by ICBC to
fund the construction of IRC’s iron
ore mining operation at K&S, of which
c.US$276.25 million was outstanding at
31 December 2015. This loan is
supported by Sinosure, the Chinese
export credit insurance agency. In the
event that K&S was to default on
its loan, Petropavlovsk may be liable to
repayment of the outstanding loan under
the terms of the guarantee and other
Group indebtedness may become
repayable under cross-default provisions

However, under the terms of the
Company’s banking facilities with VTB
and Sberbank, the Company is unable to
provide any funds to IRC without the prior
consent of these lenders.

On 19 April 2016, IRC announced that ICBC
had granted waivers in respect of IRC’s
project finance facility with ICBC, including
obligations to maintain certain cash
deposits with ICBC, and the obligations of
IRC and Petropavlovsk to comply with
certain financial covenants. The waiver from
the obligations of IRC and Petropavlovsk to
comply with certain financial covenants will
be effective immediately upon fulfilment of
certain conditions precedent and up to and
including 31 December 2017. Effective
immediately upon fulfi lment of the
conditions precedent, ICBC has also
granted IRC a waiver from the obligations to
maintain cash deposits of c.US$26 million
with ICBC during the period from 20 June
2016 to 30 June 2018 (both dates inclusive).

IRC’s K&S facility is expected to be fully
commissioned by the end of June 2016.
Once commissioned K&S is expected to
generate an operating margin even in the
current lower price iron ore environment to
generate sufficient cash to meet its
borrowing obligations.
"
[Page number 34 in PDF, page 36 actual]

Source for above quotes:


See also, from today's IRC Third Quarter Trading Update Presentation:

"
Unaudited cash balances was US$14.6m
 Included US$2.0m in debt service reserve account;
 Not included US$37m fully funded bond in ICBC, held on behalf of IRC, as down
payments on construction work at K&S
 Total debt outstanding was US$255m, made entirely of ICBC K&S project loan
 In discussion with ICBC regarding loan restructuring
"
Source: Slide 10,



Please also note that K&S commissioning is late, with full production not being currently forecast until early 2017 (as per previous guidance).

NIAI, please DYOR etc.

GLA,

GRB.

[tsmith2] 24/10/2016 23:17

Think news before Friday myself Would like co to go alone on POX

[edjge2] 24/10/2016 22:47

10p by christmas

[laptop15] 24/10/2016 19:44

Good strong close and good to see a close above 8p....very bullish sign imo :))Good news and BOOM,....then our patience will be rewarded!

[edjge2] 24/10/2016 18:22

Enjoyed my hoc rise just could go here.

[deanroberthunt] 24/10/2016 17:19

All the ducks are lined up for gold and its miners....interest rates will rise soon along with inflation and gold will spike over and beyond $2000 per troy ounce

[deanroberthunt] 24/10/2016 17:18

All the ducks are lined up for gold and its miners....interest rates will rise soon along with inflation and gold will spike over and beyond $2000 per troy ounce

[wallywoo] 24/10/2016 17:01

Glad Dean someone else thinks the same as me. The market seriously underestimates how hard and expensive it is to be in a position to produce 500k + ounces of gold. £ 250m is a tiny mkt cap valuation to pay for that. Pog just need to shake off the shackles of the past few years, hoping that the news coming in the next week or so will be the trigger