Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video 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.
Updownflash, the cash situation isnt great,because it seems as soon as POG get some money they spend it, on either exploration, concentrate or something else. I do believe the cash situation is markedly better than the recent presentation simply, because they have alluded to that in the presentation. The unknown factor, is my how much. We have also paid back another bit of the gold pre-pays. One day, hopefully within the next 12 months we will start to see the cash balances increase, unless they try and avert having a new bond issue and start trying to repay similar to the IRC financing.
show me the cash
Rusty,
I think Pavel was hyping production (to hype the share price) if you go back to some previous presentations this decline was always known. It was just offset by increases in refractory, which haven’t occurred. This might or might not be due to the new management but does it matter as an investor?
I have no doubt that POG will get there with refractory, at some point. The big issue at the moment is cashflow.
Dont get me wrong i want the sp to rise and rise , always wondered what would of happened as we were climbing towards 40p. if last summers events never took place , where would we be now , and i know its a moot point
Hi shedulike, unbelievable that people keep coming up with negatives about POG, Thats my job lol, The one thing I can accuse the new bod about is putting a very good update explaining what was happening, without advising people that this was available on website.
I have been impressed over the years with the depth these reports go to, and I agree, there is that much going on that they can not RNS every little detail.
They can advise of the availability of this as and when it is ready. It would also be nice to get a breakdown of the financial calendar, as it is nice to know when things are happening.
Personally I think investor relations has gone downhill over the last 12 months, but we do not know whats going on in the background. I still see huge potential here, as long as we can come through the bond refinancing next year, but, it looks as if gamprombank are being supportive, so you never know, they might not issue bonds if they can come to a further arrangement with gazprombank. At the very lease we should see a reduced coupon rate maybe cutting the interest in half which would save us $20m per year alone.
Lawrence13, I do not think you are so stupid, as not know this answer because it was explained yesterday in the RNS.
Majority of the deficit is the third party concentrate with " lower margins"
Quarterly output was reduced year-on-year due to lower production from Albyn, where mining has moved to the nearby Elginskoye deposit, and as a result of processing lower volumes and grades of third-party concentrates at our POX hub. In the second half of the year, we anticipate higher output at Pioneer, following the commissioning of its new flotation plant in Q2, and a potential increase in third-party material.
I continue to work with the new management team on our extensive business review that we hope will lay the foundations for the Company's future growth. This review has already delivered a revised management structure that is nearing completion. It will also evaluate the Group's development strategy that we expect to complete in Q3 2021, with the results to be shared later in the year."
Operational Highlights
Gold Production and Sales
§ Q1 2021 total gold production of 95.6koz, a decrease of 49% compared to Q1 2020 (186.2koz)
? Own mined gold production amounted to 82.4koz in Q1 2021 (Q1 2020: 102.0koz) with marginally higher Malomir production offset by reduced output at Albyn and Pioneer
? 3rd-party concentrate gold production decreased to 13.2koz in Q1 2021 (Q1 2020: 84.2koz) due to expected lower volumes of concentrate available for purchase and lower grades in the concentrates supplied
Funny enough, I can not remember you quizzing when output reduced under Pavels watch when he came back, and then later in year boosted production in quarter to 4 to "exceed"HIS revised targets
Cheers Rusty, the thing is POG is huge and they're not going to RNS every time they put a drill in the ground like an AIM junior would. I suppose it's whether you blame POG that some investors don't realise that exploration and updating reserves is an ongoing process or whether they should keep an ear to the ground :)
Pox hub, a lot of spare capacity. When there is problem, there is opportunity. Mines will come to full swing soon to feed this behemoth. I don’t think margins from third party concentrate is any issue, Rather than buying concentrate, POG should consider processing concentrate on 50% fee, as Russia has abundant refractory ore.
So how do you explain 49% reduction in gold output?
They weren't my observations. A little bird told me.
A good post shedulike, I would suggest people who don't understand this, take a few minutes to read and understand exactly what is going on, before, spouting utter rubbish. And just for clarity, By spouting utter rubbish, I am NOT referring to you, ,Lawrence 13.
Lawrence13, for what its worth, I will give you my take on your observations,
Problems:
- Incompetent management I have already made my thoughts clear on the new guys performance up to now, but it is early days and we do need to give them a chance. But If you compare these to Peter and Pavel, these have NOT nearly brought the company to its knees. I commented many times on what I deemed, either incompetence, or events or occurrences that just did not add up. I know Peter and Pavel had an influence on building the pox hub, I also know there were a lot of negatives as well. So Jury is out on that one, but, apart from communication there is nothing to suggest they are any worse, unless YOU Prove different.
- No trust in management by staff, That is heresay, where is the proof ?? Apart from an interim CEO being denied access to a building we owned
- third party concentrate suppliers don’t trust the company or its owners Absolute load of rubbish, They need us, more than we need them.
- nothing being spent on exploration. We are spending money on the Pioneer flotation plant , look at the cash in hand, we have not got masses for exploration at the moment as the priority is the flotation plants.
- Strukov on site fighting fires." Ridiculous quote, Stukhov, has a boatload of refractory ore he wants processed, if he was in charge, you can bet your bottom dollar, he would be getting it processed on the cheap. Reality is he is not.
Lets just remember, he isn't the owner, he is a large shareholder. I and other people who hold shares or also shareholders, the only benefit he has, is he has more voting rights, it does not give him any more decision rights than you or me.
There is a board of directors, I believe, he has 1 representative, the board is being increased, that will give him even less influence.
Out and about but try this for starters......
https://petropavlovskplc.com/development-exploration-reserves-and-resources/
yes I see now I had it wrong. But still 49% down on gold is very shabby indeed.
I consulted the oracle and got this straight from the horses mouth
"Only one hub but two concentration plants - Malomyr working and Pioneer being commissioned.
A lot of the non-refractory has gone but masses Of refractory remains.
Problems:
- Incompetent management
- No trust in management by staff
- third party concentrate suppliers don’t trust the company or its owners
- nothing being spent on exploration.
- Strukov on site fighting fires."
Freddie2, I understand your frustration, I feel exactly the same way. I also understand the way you feel about the promises, false dawns and lies. I have commented on that many, many times, and asked the questions.
The biggest lie was the one that Peter and Pavel told us, about how the bond negotiations were " going well " before we were " forced " 15.7 for 1 rights issue.
I still maintain, things would have ben very very, different if Peter had not gampled on the gold price, and lost his holding by doing the same. We then had the shenanigans of them stating they were underwriting the issue.
I could go on and on, but, I will not, simply, because Dennis and his crew deserve the chance to prove their worth.
Things are in place for POG to be a very profitable gold miner, Unfortunately its still, Jam tomorrow for now, and still hurdles to be overcome.
Lawrence13 There will be 1 pox Hub. I dont know where you get the impression there are 2. 1 only which took decades to build so in order to get another one, Thats 2031 ( lol )
Rusty its just promises after promises , we delayed the pox hub for 5 years , nearly went bust because of it and now our gold production is probably the lowest in q1 for 15 years . How does that make sense , not enough ore because of last years upheaval they said , who caused that , we have had lies and excuses for ever
Lawrence I think you are possibly confusing the POX Hub, POX autoclaves within the hub and separate flotation facilities at refractory operations, it's all here: https://petropavlovskplc.com/operation/poxhub/
Here Peter explains that nature takes several million years to release the gold from the quartz matrix whereas the pressure hub takes 45 minutes
https://www.youtube.com/watch?v=cR4kz9FjtDU
I understood the pressure oxidization process does what nature takes *millions* of years to create, not hundreds,
As I understood it there will finally be two pox hubs with one running now capable pf running at full capacity but you are now saying that there will be three processing plants with one running now. I thought the eventually two pox hubs were the processing plants
A production and sales report like that would've been poor for any other company - but as this is POG then my reading is more positive!
There is quite a lot of information in it covering various aspects which makes me feel that some order is being brought to operations for the first time in ages. It will be a good while though before we move off the bottom rung of the popularity ladder but it is a good time to be in at the bottom.
1N
Lawrence13, you really need to read RNS more carefully and the updates the company produce.
We have 1 ( ONE pox Hub ) Before doing what nature takes 100 years to do the ore must be processed. This is where the problem is, at the moment we only have 1 processing capability. Pioneer is being upgraded to build a second one, then a third next year.
That will be 3 times the refractory ore the we will be able to process n the POX HUB.
Freddie2, it was always going to be a long term plan, are we in a better position, massively, because we have an abundance of refractory ore and without the processing and pox hub, it would take 100s of years to enable mother nature to turn it into gold.
Well if we can't supply one why the heck do we have two and all that debt associated
There is only one hub but four autoclaves within it. They have previously stated that all four have been proven to work at full capacity but we haven't had the refractory ore available to keep them going. I think there is space for two more autoclaves when we have the flotation capacity to serve them.