Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Minority shareholders do not know owners/controlling parties of TEMI and bondholders.
Somebody from TEMI does not need cash, they want to buy (gaining from the appreciation of the share price) POG with small discount to market quotes.
As for me it is not bad news. Pavel/Peter (I believe they are controlling TEMI) wants to by POG shares at 23.6 US cent with current price around 25 US cent.
IRC will be cash machine in 2-3 month. With current oil price I believe that ruble will be depreciated by 50% and IRC cost of iron ore will be USD 30 per tonne (or even less).
Ruble depreciation is also perfect for POG (POG budgeted for 2020 - 66 RUB/USD, current rate 80 RUB/USD).
I believe that transaction with IRC is not arm's length (buyer is unknown small fund, may be controlled by Hambro/Maslovskiy or their relatives).
As for me it is bad news!
POX produced 5 tonnes and starting from December 2019 all 4 autoclaves are working.
In Russian:
https://www.ampravda.ru/2020/02/28/094232.html
Trotsenko said that he sold POG at market price with some premium. He sold POG because he is interested in another gold extraction technology. He is going to invest in mining around USD 1 billion, and he is looking open pit mines with gold content above 1 gr/tonne, and reserves above 50 tonnes. He told that in Russia around 40 potential targets/mines for him.
In Russian:
https://gold.1prime.ru/news/20200218/351113.html
It was REPO (not conversion). Several Russian media confirmed that Aeon repurchased POG shares from VTB (Russian bank).
In relation to Aeon and Yuzhuralzoloto - no useful info (both parties have not provided any comments to Russian media). In my opinion this transaction has positive signal - if a large goldminer buys POG stake, it sees some upside (and might be potential for takeover).
1. On 29 January 2020 Albyn and Malomyr were connected to high voltage grids.
In Russian:
https://nedradv.ru/nedradv/ru/page_news/?obj=a92f529c3962cda8dcd124919c38d7e3
Some comments: Grid construction (around USD 100 million) was financed by government. It was required more than 5 years to be completed.
2. POG will start mining of limestone (material for POX).
In Russian:
https://www.ampravda.ru/2020/01/30/093620.html
Russian Prosperity Fund - is a part of Prosperity (a well-known fund for investments in small and middle size companies in Russia).
From their web site: Prosperity Capital Management is one of the largest Russia-focused asset managers in the world, with around USD 4.6bn of assets under management. https://www.prosperitycapital.com/
As I know they are greedy and prefer investments which can double and triple.
Albyn is almost depleted. From 2020 POG is going to mine Elginskoye (POG holds 75% in LLC TEMI which holds license for Elginskoye). Other 25% holds Agestina.
Some additional information:
- 100% of LLC TEMI (which owns Elginskoye deposit) has valuation of USD 240 million (POG wants to buy 25% for USD 60 million).
- LLC TEMI also has debt around USD 45 million (I checked balance sheet of LLC TEMI).
- EV of LLC TEMI is around USD 285 million. And it has only Elginskoye deposit with 1.5 moz.
- POG wants to pay USD 190 per oz of reserves (in Russia it is fantastically high) - USD 285 million/1.5moz
We can discuss POG blue sky prospectives, but if you have leackage - you will recieve nothing (me too). First call - convertable notes, second call - acquisition of minority stake in TEMI for USD 60 million + USD 13 million option. Let's wait for the next leakage idea.
Now I changed my mind about Sothic behaviour and I want that Mr. Maslovskiy is dissmissed from POG.
*As for me - another fuucckking news for POG shareholders.
I expected poor results for 1H19, however I am impressed with a new cash leakage project (page 19 out of 61).
I knew about minority interest of 25% in Elginskoye - it was very strange story with so many questions.
From one side I can congratulate all POG shareholders that unknown expert estimated 100% of Elginskoye for USD 240 million. From other side (in my opinion) our cash will be paid to Agestina Limited (13 USD million option and USD 60 million 25%).
With provided description it definitely looks like leakage.
I do not know the ultimate beneficiary of Agestina Limited, but I am guessing that somebody related to Mr.Maslovskiy. \
I will not be impressed that sometimes we will see Agestina Limited news in Canadian stock exchange and some references to Mr.Maslovskiy and Mr.Hambro.
As for me - another
My thoughts about 10p level was confirmed by RNS - Sothic sold 0.5%.
Currently we have Sothic which likes 10p and almost no buyers from another side (because almost all investors do not like POG). As for me it is unreasonable to sell POG at 10p with gold around 1500, Sothic has opposite view.
I believe that market is unreasonable - POG has very high debt leverage and very high operating leverage, but no share price growth with gold highs.
I also belive that POG will show poor 1H19 results.
So many positive factors and almost no growth (as for me growth from 6p to 10p is nothing). Fundamental analysis is not working here.
POG signed loan agreement with Sberbank (USD 50 million). Purpose - procurement of 3rd party concentrate for POX.
In Russian:
https://nedradv.ru/nedradv/ru/page_news/?obj=9a5f65cce7d391909db002a4691ce540
1. Dispose IRC
2. No plans to increase share in POG. Further investments in Russian gold mining (in 2019 he bought 49% in Geopromining, 22% in POG)
3. Increase utilization of POX by own resources (POG needs new mines)
4.
Fitch increased POG from CCC to B-, positive outlook
During the last 3 weeks Sothic sold 0.62% of POG ordinary shares and it still has 9.98%. Sothic believes that 10+p is good price POG (as well as Mr. Rakishev). I do not think so, time will show.
Rakishev sold 22% for USD 100 million. Buyer is Mr. Roman Trotsenko (I believe that one year ago he bought share in Geoprommining, another Russian gold mining company).
In Russian:
https://www.rbc.ru/business/16/07/2019/5d2da52e9a7947f981eefab2?from=from_main