Petropavlovsk Share Discussion Threads

[tsmith2] 05/12/2016 13:20

More good news..Things coming together v nicely

[grbaker] 05/12/2016 13:17

I'm not sure why they would announce/publish that letter myself. It reads a bit, to me, like POG has rejected the deal and they've come back with a better offer. I certainly don't think that POG should be diluting shareholders by 20% for the deal; but that's just my opinion as a long-standing (and obviously therefore long-suffering) shareholder!

Again, to me, it reads like it is not POG who is pushing for the deal. For example, this phrase at the end of the missive this is very factual in tone from POG (taken from the above line). It doesn't read like there's a great deal of enthusiasm behind it:

"Discussions between the parties, and their respective shareholders, are continuing and the Company will make further announcements in due course."

Anyway, I expect we'll be the last to know what's actually happening behind the scenes...

GLA, NIAI and please DYOR.

[galeforce1] 05/12/2016 12:34

It could be that Viktor Vekselberg's people have told the POG board that they will block the AZ/POG merger on the currently agreed terms, because the terms are far too generous to AZ.

So POG have gone to the AZ board and said 'if you want this happen you've got to agree revised terms that are less generous'.

That would explain this unusual letter. The AZ board is saying 'we would be happy for you you to pay less'. I'm not sure I've ever come across that before in a merger situation.

Whatever comes of this it's probably positive for the share price. If AZ walks away POG will be fine. If AZ and POG agree terms that are less generous of AZ that will also be good.

[tymedici] 05/12/2016 11:09

Definitely a step in the right direction. Just need an improvement in the weather now.

[wallywoo] 05/12/2016 10:02

Don't know about every one else but every time I hear a gold deramp, I can feel the disbelief. If gold is having a down patch it is a buying opportunity, thats it. Looking forward to 2017 with confidence here. Like the rns this morning 20% feels much more realistic price for the acquisition.

[juju44] 05/12/2016 09:24

Its that stabilising Italian vote

[james190] 05/12/2016 09:22

GOLD GETTING SMASHED HERE

[stoopid] 05/12/2016 08:34

Yes I'm sure that has something to do with it as well....

[seppsuess] 04/12/2016 14:35

Hambros offspring needs that job at IRC, no matter how unqualfied...

[galeforce1] 04/12/2016 11:14

I'm sure the Board has been tempted to sell IRC in the last couple of years, but this just hasn't been an option. POG has signed a guarantee on $250m-odd of IRC debt. Any buyer would have to take that on.

But if the iron ore price can keep its current levels, and IRC begins to generate some cash, then selling the business has got to be an option for POG.

It would definitely help the share price.

[stoopid] 04/12/2016 11:07

They can see the profit it could bring in the long run and I would suggest that they want a return on their investment....

[deanroberthunt] 03/12/2016 17:29

why not sell their 35% in IRC?

[cliffo2] 02/12/2016 11:34

Yes, Santa Hambro is in the Arctic as we speak - rounding up his reindeer....Ho Ho Ho
or maybe Ha Ha Ha...

[grbaker] 02/12/2016 10:44

P.P.S. So IRC is clearly still dragging on POG.

NIAI, please DYOR and GLA.

[grbaker] 02/12/2016 10:41

P.S. The key part of the yesterday's IRC announcement is as follows, IMHO:

"
SUBSCRIPTION OF NEW SHARES BY
TIGER CAPITAL FUND SPC - TIGER GLOBAL share price AND
GRANT OF SHARE OPTIONS

etc.

REASONS FOR THE SUBSCRIPTION

With reference to the 2016 Third Quarter Trading Update of the Company announced on 25 October 2016, K&S is required to make payments of principal and interest on 20 December 2016 in the amount of approximately US$26 million under the Project Finance Facility. The Group’s current cash balance is not adequate to service the Project Finance Facility. Accordingly, in the absence of either an amendment to or waiver of the Project Finance Facility or alternative fundraising, K&S will be unable to service the Project Finance Facility on a timely basis and ICBC will be able to accelerate the facility as a result of such event of default. If ICBC accelerates the Project Finance Facility in full, the entire principal amount of the Project Finance Facility plus accrued interest will become repayable immediately, which the Group has no means of servicing its obligations.

The Investor is willing to make a strategic long-term investment in the Company, assisting the Company to overcome its present cashflow issues and provide working capital for K&S as it ramps up its mining project to full commercial production. The Subscription therefore represents the most attractive and viable option to secure financing in the time available to avoid a default under the Project Finance Facility and an opportunity to form a strategic partnership with the Investor.

As at the date of this announcement, the market capitalisation of the Company amounted to approximately US$302 million and the size of the fundraising represents approximately 8% of the market capitalisation. The Company has limited the fundraising size with a view of minimising the dilution effect to the existing

etc.
"

[grbaker] 02/12/2016 10:30

The plot thickens on yesterday's IRC share subscription:



Basically, the HK listing agency has refused them permission to list the shares; so IRC now has to convene an EGM to push it through.

Here's an extract from today's 2nd announcement:

"
SUBSCRIPTION OF NEW SHARES BY
TIGER CAPITAL FUND SPC – TIGER GLOBAL share price AND
GRANT OF SHARE OPTIONS

UPDATE ON APPLICATION FOR WAIVER IN
CONNECTION WITH SUBSCRIPTION

etc.

As noted in the Announcement, an application has been made by the Company to the Stock Exchange for a waiver from Listing Rule 13.36(5) permitting the Company to create, allot and issue securities under the General Mandate without obtaining the consent of Shareholders in an EGM for the issue of the Subscription Shares and the Option Shares at a price which represents a discount of greater than 20% to the benchmarked price of its Shares, on the grounds that the Company is in a serious financial position.

The Stock Exchange has informed the Company that it will not grant its consent pursuant to Listing Rule 13.36(5). Accordingly, the condition precedent to the Subscription Agreement that such consent be granted will not be satisfied and the Company shall convene the EGM as soon as practicable for the Shareholders to consider and, if thought fit, approve the ordinary resolution in respect of (i) the Subscription Agreement and the transactions contemplated thereunder; and (ii) the allotment of the Subscription Shares and, if required by the Stock Exchange, the grant of the right to subscribe for the Option Shares under the Specific Mandate.

As noted in the Announcement, K&S is required to make payments of principal and interest on 20 December 2016 in the amount of approximately US$26 million under the Project Finance Facility. The Company expects that the EGM will be held towards the end of December 2016 (but unlikely to be held before 20 December 2016) with two of the Company’s major Shareholders (representing over 50% of the Shares in issue combined), Petropavlovsk and General Nice, each having expressed their intention to vote in favour of the Subscription (and therefore pass the resolution). Assuming the resolution is passed at the EGM, the Company will receive the Subscription proceeds (net of the Deposit) of approximately HK$177.2 million (equivalent to US$22.9 million), on the next Business Day following the EGM, which it can use, if required, to service the Project Finance Facility and to finance the working capital of the Group. The Company will continue in its efforts to obtain either an amendment to or waiver in respect of the Project Finance Facility or alternative fundraising in order to procure that in the period between 20 December 2016 and the date on which the funds pursuant to the Subscription are received, K&S is able to comply with its obligations under the Project Finance Facility.

etc.
"

[tymedici] 01/12/2016 12:59

Just checked the closing price for IRC was 0.335 HongKong whatchamacallits, so 0.21 represents quite a discount.
I guess it will help a bit though,.... still waiting for an improvement in the local weather.

[deanroberthunt] 01/12/2016 12:52

Good article on Gold

[wallywoo] 01/12/2016 12:44

Interesting announcement from IRC. Issuing 15% more shares to an investor to help cashflow. Takes more pressure off POG to plug that gap, but will expect IRC share price to open down (issue price 21c!)

[losses] 30/11/2016 15:48

Would have expected 9p

[deanroberthunt] 30/11/2016 15:27

would have expected positive refinancing to provide more of an uplift.....but I suppose it's been dampened by Gold falling off a cliff again...shame, plus the bad weather

[grbaker] 30/11/2016 13:23

What would be excellent news, on top of all that, would be for the Amur River Bridge to get completed. The last news on that, I believe, was as follows (from IRC's 1st Nov 2016 Third Quarter Trading Update Announcement):

"
Amur/Heilongjiang River Bridge

The project to build a railway bridge across the Amur River border between Russia and China, was first launched by IRC in 2006, and later sold to Russian and Chinese development Funds in November 2014. According to the media, the Chinese side of the bridge has already been completed. In early June, the regional government of the Jewish Autonomous Region announced that the Russian part of the Amur River Bridge will commence construction. A contractor agreement has been signed which stipulates the terms and timing of the construction of the Russian part of the Amur River Bridge.

IRC’s K&S Mine is situated approximately 240 kilometres from the bridge site and IRC’s nearest customer within China is approximately 180 kilometres away from the bridge. Thus, IRC will benefit from the project with reduced transportation distance and shipment time. The bridge could halve the transport costs of K&S and further confirming IRC as one of the lowest cost iron ore projects in the world.
"


( See also Page/Slide 20 in the PowerPoint Presentation for IRC's 2016 Third Quarter Trading Update Announcement:

)

[stoopid] 30/11/2016 13:04

This is very good news, company now showing itself on a sustainable debt footing with POX to make millions in the future due to the large amount of reserves and already mined ore just waiting for treatment. Only AZ to be resolved now, one way or the other......With all this resolved and IRC looking like its on firm ground and profucing profitably there is nothing standing in the way of a rerating. Just a question of how long it takes and what value the market will settle on....