(Alliance News) - Petropavlovsk PLC on Wednesday noted the interim results announcement from IRC Ltd and highlighted a payment to Gazprombank of around USD10.3 million.
Shares in Petropavlovsk were flat at 32.05 pence in London in morning trading.
FTSE 250-listed Russia-focused gold miner Petropavlovsk holds a 31% stake in IRC, which paid around USD10.3 million to Gazprombank as principal in the first half of 2020.
This payment was made in accordance with the repayment schedule for facility agreements guaranteed by Petropavlovsk.
IRC swung to a USD6.4 million profit from a USD25.9 million loss in the six months ended June 30 as revenue rose 19% to USD106.2 million from USD89.2 million.
On Monday, Petropavlovsk announced that PricewaterhouseCoopers had rejected its appointment as Petropavlovsk's auditor.
This came after Deloitte decided not to seek reappointment as the Petropavlovsk's auditor earlier this year on concerns of the company's "internal controls and systems for financial reporting", the Financial Times reported.
PricewaterhouseCoopers said its rejection was based on the recent significant changes in the composition of the board of directors, namely the removal of the majority of both independent and executive directors, as well as concerns over the governance environment and the lack of clarity as to the future direction of the Petropavlovsk group."
Petropavlovsk is once again in the process of identifying a new auditor.
The search for an auditor commenced in July after 5% shareholder Everest Alliance Ltd demanded an "independent forensic investigation" into the company's dealings with its directors and managers over the past three years. It also demanded the company probe any dealings with IRC Ltd, which is 31% owned by Petropavlovsk and operates the Kimkano-Sutarsky mine.
In June, Petropavlovsk announced the election of a new chair, chief executive and two directors, but said it believed the voting process at its annual general meeting to appoint the new board members was skewed. Since then, the company has been embroiled in a fight for control by large stakeholders JSC Uzhuralzoloto Group of Cos, Everest Alliance, Slevin, and Fortiana Holdings.
The Financial Times said the turmoil in June was caused when UGC, a rival Russian miner, and three other investors ousted half of the company's board, including chief executive Pavel Maslovskiy.
By Anna Farley; annafarley@alliancenews.com
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