Member Info for 2227

With low priced hedges gone and the gold at current levels over $1500/oz, POG should comfortably make around 200m profits imo.

“I have covered the sector for more than 20 years and I have never seen this kind of cash flow generation,” RBC Global Asset Management’s Chris Beer said.

https://www.newsmax.com/finance/markets/gold-cash-spinning-rally/2020/01/16/id/950057/

$1560/oz is the highest weekly closing price since 2013 if I'm not wrong.

We are likely to see the highest weekly closing price for nearly seven years today.

Full Year 2019 & 2020 Guidance Thursday 23rd January 2020

Abu Dhabi Investment may be dumping their remaining 2.9%?

Gold could rally for the rest of the year, according to commodity strategists, and the production costs are likely to be less than $1000/oz for POG in 2020.

https://www.cnbc.com/2020/01/07/commodity-strategists-3-reasons-gold-could-rally-for-the-rest-of-the-year.html

The CEO invested around 2.3 million pounds before the current incident in the middle east and spike in the gold price. presumably he had the confidence, his investment will be profitable anyway.

(Reuters) - Gold surged close to a seven-year peak on Monday, as investors flocked to the safe-haven metal on escalating U.S.-Iran tensions.

https://uk.investing.com/news/commodities-news/gold-rises-to-near-sevenyear-high-on-usiran-tensions-palladium-breaches-2000-2025115

Extract from the IC.

"In its first six months with the new pressure oxidation plant (POX) in operation, Petropavlovsk (POG) has ticked plenty of boxes, upping production at lower costs than expected. But its 2019 earnings will not get the huge shot in the arm other gold miners are benefiting from, as its revenue is capped by a hedging programme.
The Russia-focused miner will hand over around 130,000 ounces (oz) of its forecast 225,000 oz production in the second half at a miserly $1,281 (£1,045) an oz, compared with the current price of over $1,500 an oz. "

"The company did not fully capture a rising gold price since half of its production, remains hedged with Russian banks, Mr Maslovskiy said.
That hedge, which was put in place in 2016 when the company restructured its debt, is due to expire by the end of this year(2019), he said."

https://www.ft.com/content/6a620a96-d39c-11e9-a0bd-ab8ec6435630

With Iran almost certain to retaliate in some way for the US airstrikes, analysts see significant scope for gold prices to push higher.

https://www.nytimes.com/2020/01/03/world/middleeast/iranian-general-qassem-soleimani-killed.html

https://www.investing.com/news/commodities-news/gold-prices-jump-as-middle-east-tension-spurs-demand-for-haven-assets-2051673

"Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
Peter Lynch

http://www.gardenstatesecurities.com/gssinsiderprogram_old.aspx

Gold prices are attractive even at current level, any increase would be a bonus for POG imo.

Full Year 2019 Production Results and 2019 Guidance likely to be released before the end of January. They were announced on 18th Jan. last year.

https://moneyweek.com/520221/heres-how-gold-could-rise-above-7000-an-ounce/

Petropavlovsk PLC said that Chief Executive Officer Pavel Maslovskiy bought around GBP2.3 million in stock via a transaction on Monday.

https://www.morningstar.co.uk/uk/news/AN_1577713625290779300/director-dealings-petropavlovsk-ceo-buys-gbp23-million-in-shares.aspx

After such a steep rise, a correction is very likely imo.

the_shareminator

Yes, there could be a correction after such a steep rise.