Petropavlovsk Share Discussion Threads

[hectorp] 23/10/2017 12:23

POG certainly is not a demanding share any more, after three or four years I'm starting to become interested here.
I'm also one who is returning to silver miners. My strategy is based on a stable or, higher gold price over the coming year. We are heading into inflation,at the same time as QE has been stopped.
I'd be interested in any views of where POG share pric
e might get to on the next return to gold at $1350, for a starter. This is all just when POG does genuinely seem to have turned the corner.
I'll open a long position in POG in coming days.
H

[leodi5] 23/10/2017 11:33

being walked up to breakout territory, soon find out if the stabilisers are
going to be taken off

[loganair] 21/10/2017 09:19

2 bargain turnaround stocks that could support 6%+ dividend yields

Rupert Hargreaves | Tuesday, 17th October, 2017 | More on: HGM POG

Trying to pick turnaround stocks can be a thankless task. Trying to select the best turnarounds, while avoid falling knives requires plenty of research and some of the time, the rewards are not worth the risk.

However, I believe Highland Gold Mining (LSE: HGM) and Petropavlovsk (LSE: POG) could be two turnarounds that are worth the risk. In fact, these two stocks look as if they could become dividend champions in the future.

All that glisters is not gold:

Over the past two years, shares in Highland Gold have staged a dramatic recovery from the lows of 26p at the end of 2014. Today, the shares are trading at 154p and have risen 10% year-to-date.

Highland has benefitted from both higher gold prices and increased output. Total production for the first nine months of 2017 was 203,552/oz of gold and gold equivalent, up 6.6% from 190,873 in the first nine months of 2016. The average gold price received for the quarter was $1,280/oz, up from around $1,100/oz at the end of 2016.

City analysts expect this performance to continue for the rest of the year. Earnings per share growth of 47% is projected for the full year, followed by growth of 17% for 2018 based on current gold prices. These growth estimates indicate that the shares are trading at a forward P/E of 9.7, falling to 8.3 for 2018 — a discount to the metals and mining sector median of 10.

As well as the low valuation, I believe that shares in Highland will support a dividend yield of 6% or more going forward.

Analysts have pencilled in a dividend yield of 5.4% for this year. The payout will be covered twice by earnings per share. Historically, Highland has distributed 50% of earnings to investors via dividends, assuming this continues for 2018, the firm looks set to distribute 9.4p per share for a yield of 6% according to my figures.

Mining for a bargain:

Highland looks cheap, but Petropavlovsk seems to me to be even more undervalued.

One of Russia’s leading gold mining companies, Petro has really struggled over the past five years. The company’s shares have lost 98% of their value as the business has lurched from one disaster to another.

Nevertheless, it now looks as if the firm is back on track. Today the company reported that for the first half, profit increased by 166% to $25m, and net cash generated from operating activities rose 150% to $75m.

Petro is making good progress on all of its objectives. Costs are falling and cash generation is strong, helping to fund capex and lower debt. Based on City expectations for growth, the shares are trading at a forward P/E of 8.4, falling to 5.7 for 2018.

And as the company continues to improve its balance sheet, shareholders could be well rewarded. If Petro repeats its first-half cash generation, the group will have churned out $150m in 12 months, giving an operating cash flow yield of more than 40% according to my figures. If management decided to devote just 20% of this balance to investors, the shares would yield around 10%. Not a bad reward for a high-risk turnaround.

Not for everyone:

Miners such as Highland Gold and Petro, can generate huge returns for investors. Unfortunately, these returns come with plenty of risk.

[peterg40] 19/10/2017 17:53

Debt ridden,Trump Ridden, it WILLend in tears; but hey we're all invested in POG and hopefully some of you like myself have got a few nuggets tucked away, beats those"Paper Promises " which we are forced to transact in.!!!

[sparky333] 19/10/2017 13:50

Did we see the high of the DOW yesterday and now the fast reversal to bear territory ? 23000 DOW omg that is way over bought on the money printing machine, debt ridden USA.

[undervaluedassets] 19/10/2017 13:49

Gold production here approaching that of Centamin.

Yet trades on 1/6th the valuation of Centamin.

I know that is slightly apples and oranges comparison.

But still this is currently ( finally ! ) looking like a proper gold miner.

[killary cunton] 19/10/2017 13:38

thanks I saw it.

[srpactive] 19/10/2017 12:50

KC

This from hgm thread.

UNLIMITED INTEREST
Foreign investors have also succumbed to a fever and are showing active interest in Russian gold mining. "The market sagged some time ago, but now interest is returning - both to gold and to Russia," said John Mann, a member of the Russundragmet Management Committee, which manages the Russian assets of British group Highland Gold Mining Ltd.

At the same time, foreigners complain of limited access to large deposits - objects with reserves of 50 tons are considered strategic, and to attract foreign investors, they need government clearance. The work on this issue is underway, the head of the Ministry of Natural Resources assured during the session. He is sure that in the end, "a solution will be found."

John Mann of Russdragmet explained that the Chinese investors can come to Russia first of all - they are already showing genuine interest to the country and the industry. "We will see new partnerships, direct investments, and corresponding growth in the share price," the Highland Gold representative predicted.

hxxps://www.eastrussia.ru/material/diagnoz-zolotaya-likhoradka/

[killary cunton] 19/10/2017 11:17

All gold miners getting their houses in order. Good production numbers from HOC, POLY, HGM, CEY and even POG in last couple of weeks.
POG looks a very good recovery stock.

forgot AAZ aswell

[sparky333] 19/10/2017 11:07

Cracks starting to show in UK consumer spending. Brexit a mess, UK could start the collapse I anticipate in 2018

[srpactive] 19/10/2017 08:45

Yes agree.

[leodi5] 18/10/2017 18:41

falling rsi, and the share price creeping up, getting interesting

[undervaluedassets] 18/10/2017 16:18

reasonable reaction to creditable production figures.

[sparky333] 18/10/2017 11:44

Agreed and that's why I have been accumulating to over 500,000 shares now.

[wallywoo] 18/10/2017 11:25

If you crunch the numbers, the average grade is now less than 0.9 g/t. With the underground mines that suddenly jumps up so they will be producing a lot more gold for the same cost.

And
then you have POX coming on stream (at around $300M cap ex) with an extra 200K ounces a year (plus much interest from other miners who also have this ore too, but no POX plant), and things really start to look interesting

[davidlloyd] 18/10/2017 11:08

Yes - some delayed chunky trades sneaking through. Thinking of a pressure cooker getting ready to blow its release valve. 'She canae take noo moor, captain....'
:-)
Well, here's hoping....an interesting holding RNS would be good just about now.....
GLA.
DL

[undervaluedassets] 18/10/2017 10:14

Well if they can maintain momentum on those production numbers this is suddenly a proper gold miner.

[sparky333] 18/10/2017 10:10

Looks like we have a big buyer

[undervaluedassets] 18/10/2017 09:58

Peter Hambro was over emotionally involved. So far this looks like better management.

Or maybe just bad timing.. all his work seems to be finally amounting to something.

[popeye888] 17/10/2017 09:58

Q3 Highlights
■ Total gold production for the quarter was 104,000oz (compared to 102,400oz in Q3 2016)
■ In Q3 the development of our underground mining operations was progressing on schedule and on budget
▪ Underground developments in Q3 totalled 2,117 metres for the extension of the main producing tunnel and preparatory works around ore bodies to begin mining.
▪ A total of 32,500 tonnes of development ore was mined, with an average gold grade of 4.5 g/t.
■ Construction of the POX Hub is progressing on schedule and on budget with first production to begin in Q4 2018
▪ In Q3 the installation of stainless steel reactors and thickeners was completed, as well as c.40% of stainless steel pipework. Intensive assembly and electrical works are ongoing.

[sparky333] 17/10/2017 07:16

Steady as she goes all on track.

[togglebrush] 16/10/2017 10:56

History has it that the traditional value of gold means that sale of one troy ounce will put a loaf of bread (2lb size) on the table to feed a family for each day of the year. This is a traditional widow/widowers insurance in a wedding ring which has been in operation well before the birth of Christ.
'
I witnessed, in the Russian currency crisis of August 1998, a brand new $200 ladies coat being bartered for a large jar (sweet shop sized jar) of pickled cabbage. Her family couldn't eat the coat. Paper money was nearly worthless and depreciating fast.
'
Today traditional value of gold isn't too far from the its historic value
'
A loaf of bread is about $2.50 or 365 days = $912.5
Gold Spot Prices Per Ounce = $1,306.30

[peterg40] 16/10/2017 10:30

Exactly Sparky.....we ain't seen nothing yet, we are fast approaching the perfect Storm and paper moneywill mean nothing.To quote Peter Hambro from a few years ago, "Money (paper money) is aPromise, Gold is Gold"

[sparky333] 15/10/2017 21:00

Gold should get a uplift following Austrian election result.World is a mess yet markets at historic highs - really !!! North Korea, inflation, money printing for a decade, historic government debts, brexit, Austrian election, terrorism, the list goes on.Markets are due a significant correction and with low interest rates the governments have no cards left to play.This could make the Great Depression look tame.!!!!!!

[juju44] 15/10/2017 09:08

epic here should be DOG