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"Someone like Gazprombank may be interested in providing funds,"
Rusty,
Suggesting that the $500m bonds my be replaced by a loan from a Russian bank is rather ironic!
In Dec 2016 we took out $530m loand with two Russian banks.
In Nov 2017 we repaid the Bank loans with the $500m Bond.
Pog shareholder Not PIG, BLOODY auto correct on computer.
Updownflat, There has been no one more vocal than me about Pavel Peter and the bod. I wasn't suggesting you sell up, just, this is POG, It is never exactly as it should be, and there is always something brewing or smouldering beneath the surface, I agree that we should be vocal, but, I personally, prefer to be vocal, about something I know about, and I am not going to discount something which could be beneficial.
The bonds have to be sorted sometime, I don't know if there is any way they can repurchase these without bondholders consent before maturity, but we know they will have to be managed before 2022, which in the life of a pig shareholder is not a long time.
As I have alluded to earlier, I do not believe we will be in the position to repay these in full at maturity. It does not need to be in bonds. Someone like Gazprombank ( I think thats how you spell it ) may be interested in providing funds, like they have done for IRC, and be paid in gold by forward buying it.
Or it might be they offer a new bond issue at a lower coupon, the bondholders wouldn't agree to this unless there was some incentive, but if in the longer term any of those were cheaper options, they should be considered.
Due to the market cap increasing it is not out of the question altogether, to have another rights issue, but, this time not to bail out the company, but to help the company expand and prosper.
There is also the possibility of a merger with the larger shareholder who I believe, is cash rich.
So a number of options, there will probably be others, most would be subject to shareholder approval, but I believe all options should be considered. My opinion only.
Any shareholder in any company has a perfect right to be critical of the management on any forum he or she chooses to do so. Let's face it - over the years Pete and Pav have given us plenty to criticise.
To balance the ledger it is also fair to say that they had a long term vision which has come to be, and, aided by the rise in the gold price over the last year this has benefitted shareholders - the shares are now worth three times their value 12 months ago.
So there are pluses and minuses, and you could argue that at this stage the pluses now significantly outweigh the minuses. However, I don't think it follows that this or any other forum has to become some sort of cheerleaders echo chamber.
Rusty,
my reason for staying is because POG is a marginal cost producer, with a rising gold price and heavily indebted. The math of this lead to better return if the management do not do any more of these actions which are anti shareholder.
Voicing this publicly is a way to stop them. You will only find out about the refinancing late in the day and it will be too late to stop.
I am not against financing I am against early refinancing because of the nature of double interest payments. It is unnecessary to do this now, just because the bond holders want it.
Because I have opinions doesn’t mean I should or will leave. If you don’t speak up you will have another situation like the convertible bonds or the purchase of TEMI. Both in the last 12 months, and both very questionable.
UpDown Flat, if that is your opinion, then you should sell. Pavel has got a stake hear himself, and a number on hear think he has convertible bonds, although this has not been confirmed. The bonds have to be dealt with, at some point, so we will have the fees, whenever, because it is highly highly unlikely, we will have any where near enough money to pay them off.
So, if we can arrange something now, which is on a lower coupon rate, it is worth considering, as long as any fees, do not defeat the object. But, in my opinion it shouldn't be poo pooed, until there are facts.
I have and will be critical of the bod when I feel it is appropriate, but, Peter and Pavel, could have caved in before the rights issue, when Pavel was ousted during a boardroom coup, and when Sapinda tried to wrestle control. But like them or loathe them, they devised a plan which ultimately saved the company, and allowed personal investors to stay invested as long as they had the funds.
I have long been critical, but only after facts were known. I suggest we take a view of wait and see. The company is in a better financial state, lets see if they can work it to our advantage.
It certainly does appear that way UpDownFlat.
This is a battle, gold is trying to pull this company up from its previous near bankrupt state and as it makes massive gains and the future is looking bright, the BOD and executive are looking for ways to strip the shareholders of the gain by taking out the cash and diluting the shareholders.