Petropavlovsk Share Discussion Threads

[srpactive] 13/10/2021 10:18

m

There will be a big squeeze very soon, the man running
the show now is very top draw from hgm, was in them for
years and made alot of money there. This is next for
me, buying regular here.

dyor

active

[montyhedge] 13/10/2021 09:14

Bears in this and Polymetal are short and caught.

[midasx] 13/10/2021 06:25

Press previous and they reappear.

[7and28day] 12/10/2021 16:02

Any chance of posting the two interviews again, only skimmed through them and they have now dissapeared. Cheers.

[srpactive] 12/10/2021 15:12

Well with a chart forming like it is, I would not want
to be short this.

dyor

[robertstronghand] 12/10/2021 15:05

I do wonder if the convertible bond fund is covering their equity short, they must be aware of the risk that the convert gets bought back and they get caught having to buy back when the rest of the market is aware they are trapped.

[srpactive] 12/10/2021 14:30

A close above 22.68p and we could spike higher, here is
hoping plenty of shorts to close if we get a little
forward momentum.

dyor

active

[k mon] 12/10/2021 11:26

- You make it sound like a government organisation ..

"no AUDITOR, no RESULTS, legal cases and MEN IN TRACKSUITS !"


Hug a Hoodie & Call me Dave...

[midasx] 12/10/2021 11:15

We have come a long way from recent times when we had no CEO, no AUDITOR, no RESULTS, legal cases and MEN IN TRACKSUITS !

Better news to come and the share price should respond accordingly.

[srpactive] 12/10/2021 11:15

New ceo top draw came from hgm, super investment
for me. Chart looking fabulous.

[robertstronghand] 12/10/2021 10:56

Thanks hadn't noticed the interview, just using Google news search on Petropavlovsk and that was on the second page of results. It would be better if the IRC deal didn't go ahead, just doubt it can be stopped, happy for UGC to explore options for blocking it though. Does look like we have broken out now...

[celeritas] 12/10/2021 10:49

The head of Petropavlovsk announced that there are no obstacles to the sale of a stake in IRC
Vedomosti


The closing of the deal on the sale by the gold mining company Petropavlovsk of 29.9% in the Far Eastern iron ore producer IRC will not require the approval of the owners of Petropavlovsk Eurobonds, Petropavlovsk CEO Denis Aleksandrov said in an interview with Vedomosti. He explained that such a decision was made by the company's board of directors.

“There are certain steps under the agreement to close the deal. The board of directors of Petropavlovsk was supposed to discuss whether we need to get the consent of the bondholders. The Board of Directors made a decision that the approval of bondholders for the deal is not required, ”Aleksandrov said. He stressed that now the buyer - the investment company Stocken Board registered in Liechtenstein - must submit to Petropavlovsk and Gazprombank a plan to remove the IRC debt guarantees from Petropavlovsk. “Whether we will be able to close the deal and when, I cannot say yet, but we hope that it will work out before the end of the year,” added Aleksandrov.

Answering the question about the possibility of terminating the contract with Stocken, he noted that the contract does not contain a clause on penalties or penalties for non-performance, therefore, a hypothetical termination of the contract would lead to legal proceedings.

IRC
The only iron ore producer in the Russian Far East. The largest shareholder of the company with a share of 31.1% is Petropavlovsk. In 2010, IRC attracted a $ 340 million line of credit from the Chinese ICBC to finance Kimkano-Sutarsky GOK. At that time, Petropavlovsk owned 65% of IRC, and the gold miner acted as the only guarantor for the company's obligations. Since 2012, IRC has carried out three additional issues, as a result of which the share of Petropavlovsk decreased to 31.1%. According to Interfax, in addition to Petropavlovsk, IRC shareholders are Prosperity (about 16%), Slevin and Everest (10.2% in total), Sova Capital - 6.1%.

In March 2020, Petropavlovsk entered into an agreement with the Liechtenstein-registered investment company Stocken Board to sell 29.9% of IRC for $ 10 million, subject to certain conditions. The deal becomes binding after the consent of Gazprombank - the main creditor of Petropavlovsk and IRC. In addition, the Petropavlovsk board of directors must decide on the need to approve the transaction by the owners of the company's Eurobonds (an issue in the amount of $ 500 million due in 2022). As a result of the deal, Petropavlovsk should be exempted from guarantees under the IRC loan agreements, which Petropavlovsk management called the main purpose of the deal. In May 2021, Petropavlovsk announced that Gazprombank had given its consent to the transaction and the agreement had become binding.

In August, the largest shareholder of Petropavlovsk, Yuzhuralzoloto (UGK, owns 29.2%), said that the deal did not meet the interests of Petropavlovsk and the company should get approval for it from the bondholders. According to UGK, the market value of a stake in IRC significantly exceeds $ 10 million and reaches about $ 100 million.At the same time, IRC's financial indicators and projected prices for iron ore for 2021 should allow IRC to pay off debt under loan agreements by the end of 2021, UGK reported. ... In this regard, early release from loan guarantees will not be a significant factor for Petropavlovsk, the company noted.


In September, UGK announced a possible connection between Stocken and the minority shareholder of Petropavlovsk - Everest Alliance Limited. The company explained that it has requested Petropavlovsk's board of directors to conduct further investigations and, if necessary, take appropriate action, including convening a meeting of Petropavlovsk shareholders.

In October it became known that the representative of UGK on the board of directors of Petropavlovsk - vice president for development and strategy of UGK Yevgeny Potapov - at the end of September appealed to the board of directors with a demand to check the need to obtain regulatory approvals for the deal. According to UGK, the deal most likely requires the approval of the Federal Antimonopoly Service (FAS) under the law on the protection of competition and, possibly, under the law on foreign investments in strategic companies.

[midasx] 12/10/2021 10:27

Need to subscribe for the full article.




"I'm not a fan of gold exports"
Denis Aleksandrov, CEO of Petropavlovsk, on the future of the gold mining industry and how his company can best fit into it
Vasily Milkin


General Director of Petropavlovsk Denis Alexandrov / Andrey Gordeev / Vedomosti
Gold prices in 2021 are in the range of $ 1700-1800 per troy ounce, which is a historically high level (gold was more expensive only in 2020, when the price exceeded $ 2000). There are less and less alluvial gold deposits in the world and more and more actively involved in the development of refractory ore deposits that require special mining technologies. Against this background, the gold mining company Petropavlovsk plans to present a new development strategy by the end of October. The new management of the company, which regularly changed shareholders and periodically flared up corporate scandals, seeks to stabilize production activities and resume the payment of dividends.

Denis Aleksandrov, who headed Petropavlovsk at the end of last year, in an interview with Vedomosti talks about the company's strategy, the fate of the deal to sell a stake in the iron ore company IRC and a possible rebranding.

- You came to the company at a difficult time in terms of management. Tell us what difficulties you faced, what have you already managed to change?
- Indeed, the period was not easy, there was a lot of noise in the press around Petropavlovsk for the last few years. Over the past 4-5 years, the main shareholder has changed four times in the company. When we joined the company in December, the team had a very wary attitude. And the first task was to convince the team that we did not come here to rob the company, not to sell it piece by piece, not to fire everyone and everything, but came to build, with plans and hopes that the company would develop further. We managed to do it, the collective believed in us as a whole. Then work began on a comprehensive audit. We have completely restructured the Moscow office, now we are in the process of the Annunciation office. Today all lines of control have become clear. Then we started looking at contracts. There were a lot of intermediaries, the purchase was not from direct suppliers. We got rid of intermediaries, “straightened out” contracts, signed long-term contracts somewhere, revised the capital expenditure program. Some employees were fired for violating the rules of ethics in the procurement procedures, with someone we are currently suing. In the first six months, we reduced capital and operating costs by approximately $ 26 million.

- What is the reason for the drop in the company's production indicators in the first half of the year?
- [Gold] concentrate has become a serious problem. In 2020, the contracting window, which usually falls in September-October, was skipped, and when we joined the company, we only had 40,000 tons of external concentrate contracted, while 80,000 tons were needed. Therefore, the search for concentrate began. on the market. To date, we have contracted our 80,000 tons. We even contracted a concentrate from Greece - this is probably our first experience with foreign concentrate, if we do not take into account the Kazakh concentrate. We did not lose much in terms of money, since the margin on third-party concentrate is less - about 10%, and on our own concentrate - about 50%. (Petropavlovsk extracts gold at the Pokrovsky Autoclave and Hydrometallurgical Plant (AGK) with the processing of 500,000 tons of concentrate per year, the concentrated concentrate is produced at the flotation factories of three mining and hydrometallurgical plants (MMC) "Malomyr", "Pioner" and "Albyn" (about 15 million tons of ore per year). - "Vedomosti ".)

In production, of course, there is a big drop. Last year there was a batch of very rich third-party concentrate, [with a gold grade] of about 100 g per ton, and for the whole year, on average, in my opinion, we got 60 g per ton, and this year the maximum we have with market, 30–31 g per ton.

Another reason for the drop in production is the Albyn project. The Albyn deposit (the Albyn project also includes the Elginskoye and Unglichikanskoye deposits. - Vedomosti) was mined in Q4 2020. At Albyn, there was oxide ore with very good recovery. The 3.6 Mtpa plant, which was built for this oxide ore, was operating at full capacity, and Albyn had the lowest costs in the group. Now we have moved on to the development of the neighboring deposit - Elginsky, it is 36 km away, and there the ores are completely different - refractory and semi-refractory with a gold grade of about 1 g per ton and significantly lower recovery - 75–78%. Now "Albyn" shows a sharp decline in production and growth in costs, and we saw this in the first half of the year.

Pioneer and Malomyr worked more or less normally at the level of last year.

- What other production tasks did you have to solve?
- Construction and launch at the end of May of a flotation plant at Pioneer. For Pioneer, this is a very important event, because the deposit is at the stage when non-refractory oxidized ores are running out and there was no flotation. Pioneer is located 30 km from our autoclave and hydrometallurgical complex, so its launch was critical for this year's production.

In the second half of the year, the factory is already operating at full capacity, and we expect an increase in production in the second half of the year, which will also affect the loading of the autoclave. The first half of the year, like the whole of 2020, the autoclave operated at 50% of the load, and a significant part of them was external concentrate, in 2020 there were 140,000 tons of our own concentrate, which Malomyr produced, and the rest we bought on the market (last year bought 117,000 tons). For the first half of the year, we also worked at 50% load. In the II quarter, they came out by 60-70%. By the end of the third quarter, we expect the utilization to be above 75%. July - August we have already worked at 100%, September - at 50% capacity due to scheduled repairs, October - December we are working at 100% capacity. Since Q4 2019, our production has been falling quarterly,

- What is the forecast of production results for the year? Do you expect production indicators to recover and grow relative to 2019 in 2022?
- This year we are confirming our production plans. This is 430,000–470,000 ounces, taking into account the third-party concentrate, the third-party of which is 60,000–80,000 ounces. I think that for third-party concentrate we will be closer to the lower limit, around 60,000, and for our own concentrate, this is 370,000-390,000 ounces per year, and here we will be closer to the upper limit.

For the next year. We see that Pioneer and Malomyr will produce either the same amount or slightly more. But we don't understand Albyn yet. Until we build a flotation there, we will still be in a little fever. Today, in order to supply 3.6 million tons of ore to the factory, we have to extract 9 million tons, and put the difference in the warehouse, which is money, a large amount of equipment. Optimization of mining operations may lead to a short-term drop in production at Albyn, but at the same time we are optimizing our cash flows.

[midasx] 12/10/2021 10:23

Do you have access to post the Vedemosti article RSH?

[midasx] 12/10/2021 10:10

With the mcap of IRC having fallen back to approx. 50% of the yearly high, the issue of losing out on the full value is not as relevant as it may have been.

Removing the guarantee leading to an improved credit rating and the ability to refinance the remaining bonds due next year at more preferable terms is the most important factor IMHO.

This removes any potential jiggery pokery as we approach the bond repayment date.

[robertstronghand] 12/10/2021 09:01

Another Vedemosti article this morning, CEO saying that board have decided bondholder approval is not required. Stocken must now submit a plan to remove the IRC guarantee to GPB and POG, whether deal can be done will be known by the end of they year. The agreement does not contain penalty clauses so a termination would lead to legal proceedings.

[montyhedge] 12/10/2021 08:23

Going to announce dividend policy end of October. Shares going higher.

[robertstronghand] 10/10/2021 18:00

Just noticed there is an interfax article on the 23rd of September saying UGC have noted that Stocken is potentially linked to Everest and that this should be investigated. Also UGC still pushing for a shareholder vote on the sale of IRC and the potential need for bondholder approval. Obviously UGC doing what they can, the question is whether it can be blocked.

[srpactive] 08/10/2021 14:28

Love the share pattern, if a rise can be maintained through
22p, the short have to be careful and there is a few of them.

Stampede maybe next week?

#dyor

[srpactive] 08/10/2021 13:18

Sova capital increasing to over 3.17%, interesting.

dyor

[robertstronghand] 08/10/2021 12:17

There is an article in Vedemosti on October 5th regarding the sale of IRC, UGC insist the deal needs approval of the Federal Antimonopoly Service and possibly the Foreign Investment Commission. How much weight does Strukov carry in Moscow as opposed to the purchaser of the IRC stake?

[robertstronghand] 30/9/2021 08:32

Thankfully POG is paying Russian electricity prices. Quarter end, hopefully the hedge funds will be unwinding their shorts.