But it warned: "Discussions are ongoing. There can be no certainty that either will result in a sale, and it is highly unlikely that there will be any returns to shareholders given the level of the group's indebtedness." Petropavlovsk debuted on AIM in 2002 before moving to the main market in 2009. Its main operating mines are located in the Amur region in the country's far east.
Not nice to read this first thing .
Lawrence Jenkins, a retail shareholder who has held Petropavlovsk shares for several years, said the UK government’s “ill-thought-out sanctions” on Russia had destroyed Petropavlovsk. “Shareholders are wiped out and Russia will get the gold and more importantly [more than] a billion pounds worth of assets,” he said. The company’s founder Maslovskiy remains in a Russian prison, where he has been detained for more than a year without being charged.
Has sanctions destroyed this company - or are we actually seeing a pattern of long term kleptocracy by the Putin government who imprisoned the owner more than a year ago, with no charges? Petropavlovsk (POG.L) plans to file for administration this week as the indebted gold producer struggles to refinance its borrowings and seeks a buyer for its mines in Russia’s far east. The company, which on Tuesday asked for trading in its shares to be suspended in London, said it would seek a hearing at the High Court in the “coming days”. Its move to appoint Opus Business Advisory Group as administrator is the latest twist for the company that was once the biggest gold miner listed on the London Stock Exchange and almost clinched a place in the blue-chip FTSE 100 index. Petropavlovsk was founded in 1994 by Pavel Maslovskiy with Peter Hambro, a scion of the London banking dynasty, and is one of Russia’s biggest gold producers. But after years of boardroom turmoil as a succession of wealthy businessmen took large stakes and fought for control of the company, it has been brought down by the war in Ukraine. The company was plunged into crisis this year after the UK imposed sanctions on its main lender Gazprombank following Russia’s invasion of Ukraine. A special tag-in for paddingtonbear and soundmoney as this might equally have gone into one of their many mining threads, (although clearly POG is no junior) and may miss it in this more general thread. The share price tells the more recent take of woe linked to the Ukraine invasion though, and the company has no existing thread on Barcplus, and looks now like it never will have! It had been one of the few Russia-focused groups with shares still trading in London until they were suspended on Tuesday. Petropavlovsk also wants trading in its Moscow-listed shares halted. Petropavlovsk had borrowings and gold sale agreements with the banking offshoot of the state-controlled Russian gas group. These included a $200mn loan and an $86.7mn credit line. In addition, Gazprombank purchased and sold all of Petropavlovsk’s gold production. Gazprombank demanded immediate repayment of its loans in April but later assigned the rights over the $200mn loan to Ural Mining Metallurgical Company, a big Russian metals producer. The rights to the credit line were assigned to an investment company called Nordic. In a statement, Petropavlovsk said it was “very unlikely” that it could refinance the $200mn loan in the near term. It did not mention the credit line. UMMC did not immediately respond to a request for comment. As well as bank debt, Petropavlovsk has $300mn of principal outstanding on a bond due to mature in November that it is struggling to refinance. The company said it was in talks with two parties interested in buying its operation assets but warned there was no certainty of a “return” for shareholders given its level of debt. Petropavlovsk’s biggest shareholder is Russian businessman Konstantin Strukov. He owns a 29 per cent stake. In Tuesday’s announcement, Petropavlovsk included statements that it plans to file with the High Court in London. One said the company had assets of about $1.62bn at the end of June and prospective liabilities of $1.7bn. Its shares closed at 1.2p on Monday, down from 19p at the start of the year. At that price, its equity is valued at less than £50mn. In Moscow its shares plunged 38 per cent to Rbs2.375.
Thank you Mario Draghi Gold Price Jumps, Bond Yields Collapse, as ECB’s Draghi Vows New Euro Stimulus A rising tide lifts all boats and I can sell out of the mess that is Petropavlovsk.
Long term holder. Winnifrith 5 free …likes this now and says buy.
Re: Shareholder Revolt Petropavlovsk's biggest shareholder throws weight behind rebel investors[link]
Re: Shareholder Revolt It would be nice to see the old directors back
Shareholder Revolt I think it is about time that this company started focussing on creating shareholder value for the many small shareholders it has. Everyone can see the potential in this business, it is just a shame that the current board isn't doing much to highlight this. I just hope that whoever wins the current shareholder battle starts focussing on this. The share price has been drifting for the past couple of years, action is required to put this right.
more shenannigans Fresh revolt at Petropavlovsk seeks to reinstate directors [link]
Re: From Telegraph "I assume they could sell it, as long as they are paying the loan, for which they are used as security, out of the proceeds of the sale?"I don't think so NK1999.IRC's market cap is just under HK$1135m, which is US$143m.Selling POG's 31% holding of IRC shares could raise at best US$44.33m.The outstanding IRC debt, for which POG are guarantor, is US$233.75m.This guarantee is not listed as a debt against POG, so paying it down will not reduce POG's debt. On the contrary, it would increase POG's debt as POG would need to borrow this money, should they be stupid enough to pay off another company's debt.
926K Director buy Surely that installs confidence going forward just bought another 50k
Re: From Telegraph No worries Kenj2.I assume they could sell it, as long as they are paying the loan, for which they are used as security, out of the proceeds of the sale? I would expect that they will still be left with some money, and debt figures will come down?nk
Re: From Telegraph Hi NK1999, Sorry I meant to reply to your previous post earlier, but got buzy doing other things.I think that Mr Rakishev is hugely optimistic or misinformed if he said:"He also wants the board to speed up the sale of Petropavlovsks 31pc stake in Hong Kong-listed iron ore producer IRC." The IRC shares were pledged to ICBC as security against the loan, so it will be a miracle imo if he manages to sell them. "As at 30 June 2017 and 31 December 2016, the Group's entire 31.1% ownership in the issued capital of IRC was pledged to ICBC as security for the obligations of the Company as guarantor and in consideration for the waiver of financial covenants under the ICBC facility."
Re: POG Director BUYS shares !!!! One hour after my last post - another Director Buy is announced."Petropavlovsk PLC ('Petropavlovsk' or the 'Company') announces that it has been notified of the following transaction in the Company's ordinary shares of £0.01 each undertaken by JSC Fincraft Investment House, a person closely associated with Mr Bektas Mukazhanov, a Non-Executive Director of the Company."926,026 shares purchased at a price of 6.96p = £64,451.Much better, but that still leaves another 4 directors (including the CEO) with zero shares.