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Just looked at the process. It looks pretty complicated, and I'd be worried about getting scammed (plus anyone sensible would worry about me being a scammer). Guess I shall just have to be patient and wait for the end of the war in Ukraine and, at some point, Evraz being back on LSE.
I have 6,500 shares in my Hargreaves Lansdown account. I have set up an email account: Evraz.shares@mail.com if anyone wants to make me an offer.
All these risks and the share price is where it is - you'd think the company was sitting on a gold mine, or something....
On the conference call he said they were not selling gold to China ("we haven't cracked that market yet")
I agree the honesty is reassuring. Generally the message was confirming the risks we have all been worried about. The situation is unchanged: there are material risks, shareholders could lose everything, but the rewards if the company gets through it all are substantial
Likes
not going to sell to Russian Central Bank
expect built up inventory to be gone by end of August
choppy waters to date largely linked to Covid in China and strength of the Rouble
Potential Transaction: all options on the table (a straight sale would inevitably be at a discount to true value)
Not interested in short term SP, focus is on restoring long term shareholder value (CEO's own personal wealth dominated by POLY share price)
Parts: more than enough to see them through to alternative options from China
Resisting temptation to sell gold at a big discount
Going to take time and not rush into decision about the potential transaction
Dislikes
Management Buy Out is one of the options
2.8B is not a comfortable level of debt (which we knew anyway, to be fair) - reassured by claim it would diminish as the parts were worked through and sales had their impact
Directors shares are on the Russian exchange (we knew, of course)
Rouble EX rate is a significant risk (although claimed still profitable at 50/dollar - it is 57+ at moment)
Going to take time and not rush into decision about the potential transaction - I know I had it as a plus above, but time is not our friend here
Gold sanctions could still have a material effect
I need to think a bit before deciding how I feel overall, but my biggest fear was a rushed fire sale, which doesn't seem to be likely. On the other hand, the risks are not diminishing. What is reported in September is going to be critical, I think
Sorry to ask such a basic question: how does one establish that no-one is shorting the POLY stock? Not being a trader, the only way I could do it would be through spread betting, but I am interested to find out how it is done
I've got out. A couple of weeks ago I'd have laughed in your face if you'd predicted me getting out, 100%. However...
SP should have climbed more this week, and Blackrock reducing their stake has left me nervous. I've probably made a mistake, as I often do, but I just feel too anxious about it all. Unfortunately, I am the sort of person who feels sick as a parrot if I reduce by 50% and then the SP goes up, so I am better off getting 100% out and mentally moving on. (I was holding GKP at over 300p so I've already missed out, big time, but hindsight is 20-20, isn't it? I've got more than a decent chunk in Polymetal too, and between the two of them there was just too much risk. Good luck to those of you with more nerve than me (pretty much everyone here, I suspect!)
(nufc9 = Newcastle United FC No. 9?)
Let's hope someone influential in the USA hears and responds to that argument.
Several quite rational arguments in this thread to suggest the SP should be unaffected, not the least being that the SP is already pricing these risks in. I'm afraid the market is not necessarily rational, though, and I believe the SP will drop on Monday. I recall the management team at Polymetal considering a restructuring of the shares, presumably to separate Kazakhstan operations, with the explicit attention of protecting shareholders. So despite any drop, I am going to hold on and wait
a) for the company to act, if necessary and
b) for the Ukraine war to end at some point in the future (possibly years) at which point I think most of us would expect the current SP to multiply at least five-fold. I can dig in, for that kind of pay-off.
There is the ultimate risk that the company could buckle under the pressure and go under, but gold is gold and I am pretty sure they'll find a way forward (or obviously I would have sold already)
Many of the trades are small in value. The big players are not selling.
I have no "inside" knowledge here, but generally the case for borrowing money revolves around using that money to generate an asset that outweighs the cost of debt. In this case GKP is laying out $5m for the Bond for no reason, since it has cash reserves of its own that it can use for capital, operating costs, etc (and its operating costs are very low, relative to income). Unless it can get interest on its own cash that is greater than the interest being paid on the Bond, it makes sense to pay it off (taking any penalties into account, of course).
My guess would be they are taking tactical advantage of the high oil price to effect a strategic gain (reduction of debt).