RE: Risky21 Jul 2022 15:09
The SP reflects the risk involved in buying this share, however Polymetal is not financed the same as what POG was.
POG financed working capital with a loan from Gazprombank plus an agreement to sell gold through the bank. Future gold was the security for the working capital loan that is – a fairly common arrangement and if Gazprombank wasn't sanctioned POG would not have entered into administration.
Polymetal have no such loans so will not be in the same position and they have enough spare capital to cover all debts for this year.
Polymetal's revenue for the 1H of 2022 was $1,048m. Nesis also stated all inventory to be sold by end of August.
I am happy that they are not going to rush into selling the assets, they are going to take their time and their focus is on the long term value of the company.
Nothing has changed for me, like I said on Tuesday I hope they don't sell any assets (which he has confirmed today is an option) and can manage to continue to work around the sanctions affecting the company, but that is my personal opinion only.
If they cant keep the company running as one business I would rather they split the company into Poly (R) and Poly (K) than sell assets which they stated was another option they were looking into.
If you are invested here for the long term patience is the key. Need to wait for the 1H results as they stated they will then give us an updated Capex and AISC.
DYOR