Petropavlovsk Share Discussion Threads

[wallywoo] 06/1/2017 08:16

popeye, disagree:

POG now have well over 500K ounces to come with a grade over 5g/t. That is 5 times the grade of last year, they crush the same amount of ore you get 5 times the gold at one fifth of the cost. Debt is secured, they need to generate profits and cashflow (reinvest, divis, or debt payoff). Of course they will still process some lower grade ore, but it will make a substantial difference.

HGM currently have an average grade of 2.4g/t. More than double that of POG, but their TCC is only just under POG's now. This will tell a very different story in 6 months IMO. It is a myth that POG is not as efficient as HGM, they have a much large ore handling capacity just had a year or so of low grade ore.

We just need to wait until the cash starts coming in. The market will be cautious at first, then this will turn.

[popeye888] 05/1/2017 16:39

HGM up 5.77%
Pog up 0.14%

Pog's Debt must be reduced or a substantial rise in the gold price.

[popeye888] 05/1/2017 15:23

Why would Pog want to pay a divi when their main priority must be to reduce debt to a more comfortable/manageable level. There is no guarantee that gold will not fall much further than it has during the last 6 months.

[brian1944] 05/1/2017 14:55

rupe 1958 here here

[rupe1958] 05/1/2017 14:48

It's interesting to compare POG with Highland Gold Mining (HGM).

HGM was definitely the place to be invested in 2016. The share price more than tripled from under 50p to 150p. POG has done less well, but that may be an an opportunity now.

Their Enterprise Values are similar (HGM £641m, POG £732m), but POG's turnover is almost double (HGM £238, POG £453m), because POG's production is almost double HGM's

POG claims 8.4m ounces of Reserves within 23.3m of indicated and inferred resources. I'm not sure sure what the reserves figure is for HGM, but it has 16.7m indicated and inferred resources.

HGM has an AISC of $609 per ounce. I think the the AISC for POG is bit higher than that.

POG's debt is higher than HGM's and it is currently less profitable, but that should change.

HGM pays a 5% dividend. POGpays no dividend.

POG definitely seems to have more 'baggage' - in particular its guarantee on the IRC debt.

All this suggests to me that POG should at least double from its current valuation. It's a bigger business with more production and more reserves. We just need to start making more money and shedding some of that 'baggage' and paying a dividend. All some way off, but hopefully it will happen in the end.

[wallywoo] 05/1/2017 10:41

Would not blame you Dean, for me I mainly invested at between 6.7 and 7p 3 months ago, and have traded these a number of times. We all have different circumstances, you have to do what is right for you

[wallywoo] 05/1/2017 10:23

maybe Dean, you cynic! This share will certainly try your patience.

However, 2016 half year results showed a profit, net assets rose. Production for the 2nd half, even at this announced reduced rates should still be 20% more than the first (187K to around 220K) and gold price was above $1300 for most of it, so profit and net assets should still be on the march.

Looking forward, we have high grade ore from open pit and underground (lots of it too 300-400K+ ounces) all at 5+ times the grade of 2016. Can it really stay at 7p for the next 6-12 months. Lets wait and see.

[deanroberthunt] 05/1/2017 08:31

LOL

IRC up..........POG 7p
Gold Up.........POG 7p
Gold Stocks Up..POG 7p

I reckon if Gold was $10,000/oz, POG would be ....7p

[wallywoo] 05/1/2017 08:28

This stock is strange when you think about it. The market cap is about the same as POG will / has invested in the POX project, crazy. Cash and liquidity should come streaming in this year and when gold gets a fair valuation .... One day Rodney!

[dan554] 04/1/2017 23:54

Roll on Jan 25th.

[stoopid] 04/1/2017 12:30

Divi not until after April at least. Still to many problems for a divi

[seppsuess] 04/1/2017 08:42

A dividend payout would help POG to leave the lousy stock index (LSI)

[deanroberthunt] 04/1/2017 07:44

anyhow, Silver is the better bet as the current ratio is 70:1, with the norm being 30-40:1

[deanroberthunt] 04/1/2017 07:44

you need to be contrarian and understand the crooks that are GS et al.....

what happened when Brent was $28 and GS said $20 and Standard Chartered $10.....

[brian1944] 31/12/2016 14:53

wally here here

[wallywoo] 31/12/2016 09:58

I look at it another way Dean. Pog has been positively effected by all those things but it has not yet changed the share price It is the share price that is lagging here, like a bolt ready to be fired. You cannot hold it back forever

[losses] 29/12/2016 17:47

Be glad it's not going down

[deanroberthunt] 29/12/2016 16:34

Gold goes from $1040 to $1400...POG is 7p
Gold goes from $1400 to $1130...POG is 7p
POG sorts out refinancing.......7p
IRC shares soar.................POG is 7p
The world comes to an end.......POG is 7p
Gold goes to $5000 per troy oz..POG is 7p

Will this festering heap of tosh EVER go UP!!!!!!

[stoopid] 29/12/2016 13:24

£50k shares traded. Probably needed it for Christmas presents....

[stoopid] 28/12/2016 22:28

Good points and probably closer to the mark than we think.....

[officehead] 28/12/2016 19:39

Metkombank are another Renova product. Renova have been hovering around POG for a number of years, Lamessa was a major bond holder prior to rights issue if I recall correctly, IMO somewhat akin to a vulture circling an injured beast. The rights issue took the beast off life support, but still injured and vulnerable to the wolf pack circulating around POG, waiting to attack. However with everyday the beast is getting stronger and more able to defend itself. The blood transfusion that is the revised repayment schedule will allow POG to rehabilitate back to financial health with the new U/Ground mining and primarily POX.
The recent statement about the ending (well not starting)the proposition to merge Kamchatka Gold with POG was at best dismissive IMO. If IRC can show good progress over the next 3 months then POG will be seen to have a good investment, rather than the current financial burden.
If I was a Wolf the time to strike must be very close!!! Now where is my medication!

[stoopid] 28/12/2016 16:18

There is more too this, there is too much going on behind the scenes here, something is going on....Lots of good news out yet price still being kept down.Well, we will see eventually....

[cl2201] 28/12/2016 14:10

Interesting.