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Been refurbishing a bathroom for the past few weeks (can't afford American labourers at $75+p.h) so not contributed to many BBs of late. I'm with Rusty on this one though ... no way POG has $120m cash rattling around. However I'm ever the cynic and believe this issuance of new stock / dilution is just another ploy to gift stock to a few preferred insiders. Can't find much info about Agestinia ... other than they are another one of the many companies incorporated in Limassol Cyprus ... like a few other vehicles used for nefarious purposes by PH & PM over the past 5yrs
Still - gold is the place to be right now, so even crooks running POG can't stop the sp rising.
I definitely see more potential in other miners right now, so I'll continue to diversify away from POG
KRSS, I apologise in advance for saying this, BUT, you are deluded. POG have $125m dollars of convertibles and $500 m of other bonds. So to suggest net debt of $300M ( in my opinion ) is ludicrous. Because that would suggest they had cash of $325 m.
KRSS, If they had $325m of free assets they would pay for the whole of the TEMI deal in cash, and then use the rest to buy more concentrate to make more profit. Reality is somewhat lower. When results are known it will give us an idea but, last time the next debt was at about $520 m not exact approximate. If you believe I am wrong show me your Maths, and then explain why they wouldn't just buy TEMI with the free cash.
The last par chilled me a little as I hope the company have factored in the possibility that CV could still affect operations. They've had the first few cases in Amur now, hopefully it's been contained but the pattern across the world is that this seems to be impossible. Obviously our operations are isolated and most workers live on site in extended shifts so let's hope it can be kept out but a breakout in camp could be a real problem. I hope they have a way of testing the workforce as they return from leave.
Rusty, on a very bright side, Net debt can fall below $300m level, provided third party third party concentrate has done magic. Full news release ; MOSCOW, April 2 (Reuters) – Russian gold miner Petropavlovsk said on Thursday it had decided to exercise an option for purchase of one quarter of the TEMI project in Russia's Far East for $53.5 million, of which 40-50% will be paid from its own cash, as rising global gold prices and a weaker rouble boost the gold miner's cash flow.
The remaining part of the deal will be paid by issuing new shares of the company.
If shareholders vote to approve the deal on April 16, it will be closed by mid-May, Petropavlovsk Chief Executive Pavel Maslovskiy told Reuters.
The deal with Agestinia Trading Limited, disclosed by Petropalovsk previously , provides several options to exercise it, depending on the timing and the number of new shares for the payment.
"We reviewed our current financial position and decided to pay the cash component in the amount of 40-50% of the transaction to reduce dilution of the current shareholders," Maslovskiy said.
The rise in global gold prices since the start of 2020 and a weakening rouble currency against the dollar amid the coronavirus pandemic and low oil prices reduce Petropavlovsk's costs in dollar terms and raise dollar revenues.
Petropavlovsk, which already owns 75% of TEMI, believes it is important to consolidate the entire project with 4.5 million troy ounces of resources. The company sees "great potential for exploration" at the project's deposits in the Amur region, Maslovskiy said.
Maslovskiy added the spread of the coronavirus and related travel restrictions have not affected the company's operations.
krss, Your post previously, OSCOW, April 2 (Reuters) – Russian gold miner Petropavlovsk said on Thursday it had decided to exercise an option for purchase of one quarter of the TEMI project in Russia's Far East for $53.5 million, of which 40-50% will be paid from its own cash, as rising global gold prices and a weaker rouble boost the gold miner's cash flow.
The remaining part of the deal will be paid by issuing new shares of the company. If shareholders vote to approve the deal on April 16, it will be closed by mid-May, Petropavlovsk Chief Executive Pavel Maslovskiy told Reuters.
The deal with Agestinia Trading Limited, disclosed by Petropalovsk previously , provides several options to exercise it,
Your post today, POG achieved $1388 sale price for 514k ounces year ending 2019. So if AISC $900 or $ 1000 or $1100, its possible that POG has free cash from $100m to $200m. Q1 went very well because of Gold price playing around $1600, Rouble weakness & oil in March. If above estimates are correct, two possible routes can be predicted. So if POG only had the lower of the amounts, why, oh why, wouldnt they just pay it in cash. There is even the talk of a small rights issue, if they had that sort of cash those noises would not abound. So my suggestion is they DO NOT have near that amount. Time wil tell.
POG achieved $1388 sale price for 514k ounces year ending 2019. So if AISC $900 or $ 1000 or $1100, its possible that POG has free cash from $100m to $200m. Q1 went very well because of Gold price playing around $1600, Rouble weakness & oil in March. If above estimates are correct, two possible routes can be predicted.
If they had $120 million of cash, then why wouldnt they just do the whole transaction in cash ??? This is POG, it is never the way you would expect. Years and years of surprises and a lot of them were not good. !!!
Rights issue, at deeply discounted rate after they said talks were going smoothly, Sapinda, board removal, bond re issue, price of coupon for debt, INCLUDING conversion option, Pavels and Peters ( supposed" support for the rights issue ( with their banking friends and put and call options ) etc etc plenty of shenanigans. And the above is what I could remember from the top of my head ( oops forgot about the purchase of the helicopter ) there are numerous others.
I am going to make a guess and suggest that POG has $120M in cash at the end of Q1.