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Everopeful - the reality with POG is that probably more than 50% of the equity is held by Russians and all the assets are physically in Russia, so I can see some logic in a Russian listing.
Also, given the general hostility in the UK to Russia, I can't see a new Strukov/Petropav megagroup attracting a lot of Institutional or retail interest in London. But in Moscow it would be a very different story.
As POG shareholders I think we could do well from these developments. If the new group floated in Moscow with a smilier mcap to Polymetal or Polyus and POG was 35% or 40% of that we'd be fine & dandy.
I agree with you Bumpy. Strokov has tried and failed to list before apparently. I can see a case for merger helped with the aid of Moscow listing, but who knows for sure.
What's all this fuss about.
Much smaller companies have dual listings. For example Pan African Resources , a much smaller company than POG have a dual listing ,johannesburg south africe and London.
Pavel Maslovskiy bought 17.4million shares only a month ago. The management is trying to find ways to increase the value of this company imo.
Secondly if the bonds are converted into shares the market can absorb them more easily with a dual listing.
They've only "undertaken an analysis of the potential for a secondary listing " at the moment.
Strikes me that the idea of a secondary listing on the MCX could be connected with the arrival of the new largest shareholder, Konstantin Strukov.
If POG and Srukov's company were to combine in the future if might be easier to float the combined group in Moscow than London. Strukov's assets include coal mines, which would be a problem in London.
Maybe London will end up as the Secondary listing and Moscow will become the Primary listing. Might make some sense.
is this the transaction related to amir region ? Smaller Related Party Transaction
Mon, 23rd Sep 2019 12:22 RNS Number : 3122N Petropavlovsk PLC 23 September 2019
Petropavlovsk PLC Smaller Related Party Transaction In accordance with Listing Rule 11.1.10R(c), Petropavlovsk PLC ("Petropavlovsk" or the "Company") announces that as disclosed in the Company's Half Year Report issued on 10 September 2019, it has entered into an option agreement with Agestinia Trading Limited ("Agestinia"). Agestinia holds a 25 per cent. interest in TEMI LLC ("TEMI"), a 75 per cent. owned subsidiary of Petropavlovsk which in turn holds licences for the Elginskoye Ore Field and Afanasievskaya Prospective Ore Area. Whilst there is currently no production occurring on the licences at the Elginskoye and Unglichikanskoye deposits they hold a substantial amount of non-refractory reserves and resources which are suitable for processing at the Company's resin-in-pulp plant at Albyn. The option agreement entitles Petropavlovsk to purchase, at the Company's discretion, Agestinia's 25 per cent. interest in TEMI. The option price is US$13.0 million to be paid by 18 November 2019 (the 'Option Price') and upon payment of the Option Price Petropavlovsk will have the option to acquire Agestinia's interest, conditional upon any regulatory consents or approvals being received (the 'Option'). US$7.0 million of the Option Price was paid to Agestinia on 29 May 2019. At Petropavlovsk's election, the remainder of the Option Price (US$6 million) may be paid in cash or Petropavlovsk Ordinary Shares at a fixed price of 8.26 pence per Ordinary Share. Subject to payment of the Option Price, the exercise period for the Option is 730 days from 22 May 2019. The exercise price of the Option will be: US$60.0 million; or US$53.5 million if the Company exercises its Option on or before 20 May 2020. The exercise price for the Option may be paid in whole or in part in Petropavlovsk Ordinary Shares using a monthly average price. As Agestinia is a substantial shareholder in a subsidiary undertaking of Petropavlovsk, it is considered a related party of the Company for the purposes of Listing Rule 11.1. The entry into the option agreement is a transaction which falls within Listing Rule 11.1.10R (modified requirements for smaller related party transactions) and this announcement is made in accordance with Listing Rule 11.1.10R(c). Should Petropavlovsk determine to exercise the option, it is likely that the transaction would constitute a Related Party Transaction under Listing Rule 11.1 and, if it does, it would require, inter alia, shareholder approval. As at 30 June 2019, the Company recognised a US$9.2 million fair value gain on the Option, based on a valuation undertaken by an Independent Expert. The combined TEMI licences cover an area of 1,013km2 where extensive alluvial gold deposits remain.
February 11, 2020, 12:36
https://fas.gov.ru/publications/20284
" but with a suspensive condition, allowed "British Petropavlovsk Plc to acquire a 100% stake in a gold mining company in the Amur Region".
Was it the condition to list in Russia.
Could it be anything to do with this ?
February 11, 2020, 12:36
Source: RIA Novosti. All news
The Federal Antimonopoly Service (FAS) of Russia expects that the new composition of the government commission to control the implementation of foreign investment will be approved by the end of February, and does not exclude that its meeting may take place in the first quarter. This was told by deputy head of the department Andrei Tsyganov during the conference "Economic situation in Russia: trends and forecasts."
“We hope that by the end of February the composition of the commission will be determined,” he said, adding that the FAS is currently working on about 11 transactions, some of which may be ready for consideration by the commission.
In an interview with RIA Novosti, Tsyganov clarified that the proposals on the new composition of the commission were already "in a high degree of readiness", and did not rule out that its meeting could take place before the end of the first quarter of 2020.
“It is possible that the commission will be held, because the last time it was convened in the previous composition in November,” he answered the question of whether the right commission could be held before the end of the first quarter.
The last meeting of the right committee on foreign investment was held on November 14, 2019. Then she allowed a consortium of Saudi investors and RDIFs to acquire 30.7% of Novomet, German Fraport and Qatari companies to acquire Pulkovo cargo terminal, approved a deal to purchase Finnish Fortum 20.5% in German Uniper, but with a suspensive condition, allowed "British Petropavlovsk Plc to acquire a 100% stake in a gold mining company in the Amur Region".
"British Petropavlovsk Plc to acquire a 100% stake in a gold mining company in the Amur Region".
"POG does all it's business in Russia, so it makes sense to have a listing there too. With the gold prices at current level it's unlikely they need to raise any capital. POG should have enough cash by the end of 2022 to pay the convertables imo."
2227,
If they do not want to issue more shares then why talk of a new listing?
It costs money to list on any stock market. This would be money down the drain if they were not looking to issue more shares.
As for the Convertibles ($125m) they are not due till Jul 2024.
It is the ordinary bonds ($500m) that are due at the end of 2022.
If this plan goes ahead the ordinary bonds could in effect become Convertibles, when the bondholders cash their bonds in for new Russian shares. POG is likely to acquire many new and powerful investors, who may not have the interests of existing shareholders at heart.
Can’t see them increasing stake in IRC when declared strategy is to divest from the company.
KRSS, Why oh why would they want to increase stake in IRC. And if they were to increase stake would they not have to make a mandatory offer. In my opinion we have a big enough stake already and dont need their debt burden as well as our own.
A company with higher capitalisation and no debt should command a higher PE similar to Polymetal and Polyus imo.
Kent Agreed it would mean dilution, but it would be a company with a higher market capitalisation and very little debt.
For me it totally depends on the price they would be issued at. Its never as simple as it seems with POG. All those posts from people saying they are to make hundreds of millions they can produce more ore etc etc. If only it was that easy. And no mention of the other transaction that would need to be paid for if it went ahead.
2227, with dual listing, it itself derisks POG, If they increase stake in IRC, it will be easy to dispose it off, Actually they made mistake by not buying General Nice stake, IMO. Just sitting on cash not a good thing, unless they use it effectively to eliminate risks
POG does all it's business in Russia, so it makes sense to have a listing there too. With the gold prices at current level it's unlikely they need to raise any capital. POG should have enough cash by the end of 2022 to pay the convertables imo.
"Petropavlovsk PLC ("Petropavlovsk" or "the Company") notes the recent press speculation regarding a dual-listing on the Moscow Stock Exchange and can confirm that it has undertaken an analysis of the potential for a secondary listing in Moscow."
What we are talking about here is a secondary listing in Moscow. The primary listing in London would continue unchanged.
A secondary listing is often used to raise money as stated by InvestorWorlds below.
"Secondary Listing
Any listing of a security on an exchange other than its primary exchange. Secondary listings are usually an attempt to access new markets in order to raise capital when the primary market is saturated."
http://www.investorwords.com/5780/secondary_listing.html#ixzz6EDvnocZ2
As in my earlier post that means issuing new shares and therefore shareholder dilution.
To raise the $500m needed to repay the 2022 Bond holding would result in 40% dilution at today's share price.
Think there have been enough shenanigans already lol
Maybe it weakens regulatory standards allow all sorts of shannanigans inducements for share purchasers there. Actually how will that work for share holders who holds sway London or Moscow ?
I read on the ADVN forum someone saying that it allows russian money holders to deal directly with POG thus encouraging more investors
Moscow? I thought it would be Hong Kong
investopedia,
Dual listing refers to a listing of any security on two or more different exchanges. Companies use dual listing because of its benefits, such as additional liquidity, increased access to capital and the ability for its shares to trade for longer periods if the exchanges on which its shares are listed are in different time zones outweigh the costs of a second listing. Some exchanges have a number of listing categories for companies that seek a dual listing, each with different requirements and benefits.
Yes i see that , sort of meant in the long term
Market seems to like it.