The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
As I said earlier the likely selling has nothing to do with any perception that HGM is anything other than a great investment - if you have to sell something I think we would all sell something that we perceived we were getting a decent price for - many of their other businesses are probably in unlisted companies that they can't sell. Least painful option!
The seller David Davidovich has become a multi billionaire and has far bigger investments than this. His investment here is probably not significant for him anymore .
Interesting discussion. Strange time to dump shares in a well managed gold producer when the price of the metal looks likely to rise into the mid $1800s by the end of the week.
Moscow. July 7th. INTERFAX.RU - Partner of Roman Abramovich David Davidovich in early July sold a 0.5% stake in Highland Gold Mining (HGM).
As follows from the message of the company, Davidovich's share in Highland Gold was reduced to 2.68%.
The market price of 0.5% HGM, based on the latest bid closing price in London, is £ 4.1 million (about $ 5.2 million).
On the eve of the transaction, the total share of the main group of Highland Gold shareholders - Roman Abramovich, Evgeny Shvidler and their friendly structures - amounted to 43.77%. One cannot conclude from the message whether Davidovich sold 0.5% of the shares to one of the partners or to a third party. If the buyer was a third party, the share of the main group of shareholders could be reduced to 43.27%.
https://www.interfax.ru/business/716171
Highland Gold is a company registered in the UK and mining gold in Russia. The main projects are located in the Khabarovsk Territory and Transbaikalia, in Chukotka, as well as in Kyrgyzstan.
To add to my thoughts yesterday on our seller - perhaps he is simply selling some of his portfolio that is liquid not trashed. Many sellers of Gold assets do so in order to cover problems in other investments!
I read yesterday evening about Russia having a serious economic problems as C19 causes recession. The crushed oil price hasn't helped, so bearing in mind the Oligarchs have other interests in Russia, Mr Davidovich is in meat processing, it's not a great stretch of the imagination to envisage he needs cash to support other parts of his portfolio.
Perhaps this phenomenon may even account for the fighting in POG as enemies believe their adversaries are financially weakened and for the taking - just a thought. Putin appears give his people some degree of freedom to infight as long as it is within his overall agenda, I recall during the last recession Oligarchs were apparently put on notice they may be expected to do the patriotic thing and repatriate some of their money - maybe he's put them on notice to bring back US Dollars.
Maybe, I'm off the mark, but perhaps worth considering in many other companies that many old scores might be settled or seemingly invincible industrialists fall, and not just in Russia (Closer to home Richard Branson's airline in trouble) and there are many other countries that will be under even greater pressure (some National default are a distinct possibility as $ debt payments become impossible to service.
Whatever you invest in , take care, the current risk on environment appears to me to be very strange in light of the rising C19 numbers and yet to materialise economic consequences. Our seller, is inconsequential even if he sells all his shares - I suspect there will be bigger catalysts to drive Gold prices and assets prices all over the place. Overall, I can't think of a better sector to be in.
https://oilprice.com/Energy/Energy-General/Oil-Price-Crash-Causes-Major-Recession-In-Russia.html
"His holding in HGM probably has not much significance for him anymore."
I think you are probably right , he, personally, probably had nothing to do with the decision, it's penny change to these guys - or maybe liberating some cash to buy a Yacht or Austrian mansion ( apparently there are more Origarch properties in Vienna than London and a few Mr Fixits . Whatever, I wouldn't assume anything.
To be honest I didn't know anything about the guy before the RNS, but backs up what I've been saying about being connected to the right people.
He also seem to have an interest in TransContainer, a giant freight transport company based in Russia. His holding in HGM probably has not much signifcance for him anymore. He'll probably sell rest of his shares and hopefully this will fly once he has cleared.
Billionaire! David Davidovich
According to Forbes:
"Fellow billionaire Roman Abramovich's much lower-profile right-hand man first worked with him at Runicom, an offshore holding. Was also main oil trader at Abramovich's Sibneft, which was sold in 2005 to Gazprom. Owns piece of Millhouse LLC, Abramovich's investment vehicle, with assets in metals, commercial real estate and cash. In 2010 he bought Abramovich's coal mines in Chukotka and sold them to Canadian company Kinross Gold. He also controls Prodo, the second biggest meat and meat products processing company in Russia and the biggest source of his fortune."