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its obvious that most posters here have never run a business.. if you had, you would know that the reason companies go bust is not because they don't have assets, but because they run out of cash..
POG are rapidly running out of cash and their ability of using their assets to generate cash are at the moment very limited and almost zero .. if we default on the loans, the creditors, the people who POG owe money to, will have control.. the creditors could trigger the events that pulls the plug on the company.. and in any resulting fire sale of assets, any money raised would go to the creditors first, and usually only the creditors.. there is rarely anything left for the shareholders..
All we can hope is that some of the large institutional shareholders are trying to help with a restructuring of debt that is agreeable to the creditors..
cash is king.. and POG's supply of cash to meet its obligations is not enough.. as pointed to in the RNS
the amount of gold we may or not hold is irrelevant if we cant turn it into cash..
please do tell which part of the FT article you think is sh**
do enlighten us..
article from the FT 8 hours ago.. does not make good reading...
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https://www.ft.com/content/bc61a669-09ca-4b6c-b614-5b4df61fc65a
Russian gold producer Petropavlovsk has warned investors that they could be wiped out as the wave of sanctions against Moscow leaves the group struggling to refinance its debt.
The company said on Thursday that it was considering putting itself up for sale because “in the present circumstance” it would be “very challenging” to pay off a $304mn convertible bond due in November.
“The group has limited cash reserves outside Russia. There are legal restrictions in place in Russia which limit the group’s ability to transfer cash out of Russia,” it said in a statement.
As pressures on the company mount, Petropavlovsk said it had appointed restructuring specialist AlixPartners to examine options including the sale of its “entire interests in its operating subsidiaries as soon as practically possible”.
“It is not currently clear what return, if any, may be secured for shareholders or the holders of the bonds or notes as a result of this process,” the company warned."
your right, it does say that, but I think they are referring to the fact that when they remove them from the indices calculation, the value of our market cap will not be taken into consideration.
The whole situation could do with some clarification from POG them selves..
but just to say, Zelensky is now saying that NATO membership is not on the cards, and we could see a peace deal come from that, and some kind of market stability will come from that.. and in the meantime POG have still been mining gold, gold is still high.. just because we aren't included in the FTSE Russell indices doesn't mean to say we don't exist as a company traded on the LSE
they are not being "removed at zero value", they are just not being included in the FTSE all share calculations..
You will still be able to trade, the price is order book driven.
there will be some funds who wont be able to touch POG because of that, but I dont think we have many of those on board anyway, but other investors will be able to buy and sell...
including the likes of Van Eck , Norges bank etc
Below is the RNS from Polymental. The same will be true of POG, in that POG will still be listed , and traded, on the London Stock Exchange ( LSE) but will not be included in the calculation of the FTSE Russell indices.
This is not a de-listing from the LSE,
There are 641 companies listed and traded on the LSE, of which 619 are used to calculate the FTSE all share index..therefore, there are 22 companies on the LSE that are not in the FTSE all share index calculation.. POG and Poly etc will become one of those..
"The recent exclusion of Polymetal shares from the series of FTSE equity indices does not impact the ?ompany's listing on the London Stock Exchange (LSE). Trading of POLY shares on LSE and Astana International Exchange (AIX) continues. "
the Level 2 order book is looking very weird.. never seen it so short.. apart from the MM's there are only two people either bidding or offering..
29.2% is the holding that Strukov had via Ugold..
this RNS looks like it relates to that holding..
REGION is a financial services company in Moscow.. maybe they have a nominees service and are holding Strukov's holding as nominees..
There are 11 shareholders that own more than 3% , the threshold at which any share transaction would have to be notified, and they would have to notify and an RNS be issued if they had sold any shares in the last 6 days, or anytime..
This includes Van Eck, Credit Suisse, Norges Bank, Banque Syz.. as well as Strukov,s Ugold..
Since the crisis started on 24th, there have been circa 212m shares traded, of which roughly a half were sells, so around 100m.. 100m shares is about 2.5% of shares in issue, but a similar amount was bought..
If the shares go to zero, all the holders will loose, including all the major holders..
There have been no notifications or RNS's. .. so Van Eck, Credit Suisse, Norges Bank, Banque Syz.. as well as Strukov,s Ugold are all in the same position as us smaller holders..
So none of the big holders have sold a share.. or equally have bought any shares.. if they had we would know about it, also the volumes traded dont add up to much anyway..
there is talk of a cease fire, and the Chinese have said they will help broker a de ramping of the situation... at which point, if it happens, there should be a big bounce ..
POG are a UK company, Company number 04343841, listed on the London Stock Exchange, Registered Office is Grosvenor Place, Belgravia , London.
POG is legally a UK PLC, albeit with its major assets in Russia..
In the month since taking their 3.6% stake, VanEck are down roughly 20%..circa £6m.. be interesting what their take on all this is..
Not heard of Van Eck before, but they look like a class act.. serious investors and gold specialists.... I think this is very good news
I think this is a good outcome.. whilst cash the price for the IRC stake could be higher that is not the main point..$10m is neither here nor there.. but they key thing is freeing the company from $234m of linked credit line guarantees.. these guarantees sit on the balance sheet as if they were a debt..which potentially they are.. without them the balance sheet will be $234m to the better..
In the last week Gold has dropped from 1860 to 1800USD, also MOEX has dropped over the last week and remains volatile..
Sentiment generally is not positive..however, most of today's trades are buys.. If Russia do invade Ukraine, then there will be downward pressure from MOEX, but Gold normally rises when there is serious conflict going on.. I don't think it is anything to do with internal POG issues such as IRC or production..
Or, there maybe a big seller around .. !
Personally I think this is all sentiment.. all IMHO
we are now the highest riser of the whole FTSE today..
I know we are still at lowish levels, but it is nice to see something encouraging for a change
biggest riser again on FTSE 250...
2nd time in 3 trading days..
Maybe SOVA buying again..? whatever it is.. it is encouraging..
its there on Stock Exchange website..
Sova have bough bought back some of the share they sold on 5th July..
5th July they sold and went down from holding of 6.14% to 2.3%, yesterday, according to today's RNS they have gone up from 2.3% to 3.17%.. which means an additional purchase of 34m shares.., about £6.8m value purchase.. but still leaves them a long way off their July holding of 6.14%
well, this is interesting.. we are currently today's biggest riser in the FTSE 250..
there isn't that much of a jump in today's gold price to justify this..4 days ago Gold was $15 higher and POG was below 20p, so it isn't that..
Something going on behind the scenes here..
actually, it is change of controlling person..
UGC still own the shares..
Evgeniya Konstantinovna Kuznetsova
has sold her holding , 29.191064% of the company, to -
Konstantin Ivanovich Strukov
not sure if this a good thing or a bad thing.. but this is what the two RNS's amount to..