Just Seen This Russian Article23 Jul 2018 09:53
It was linked on another POG forum. I checked out the link and translated it for myself via google translator just to be sure
https://gold.1prime.ru/news/20180720/270749
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MOSCOW, July 20 - RIA Novosti / Prime. Petropavlovsk Plc (GC "Petropavlovsk") would lose its future if the unfinished autoclaved complex of the company in the Amur region were sold, said Pavel Maslovsky, general director and co-founder of Petropavlovsk.
"I know that the former leadership had an idea to sell the autoclave, I was also approached when I was in the company's management a year and a half ago, and I was against it, and now I'm totally against it, because the autoclave production itself is not a profit center," - said Maslovski in an interview with GTRK Amur.
According to him, selling the autoclave now would be ridiculous, since the main costs have already been made, and it needs to be put into operation. "It would be an instant profit of several hundred million dollars, but this, with a high probability, would deprive the enterprise of the future," Maslovski stressed.
In August-September, Petropavlovsk finishes construction work on the autoclave complex, plans to start crimping, cold start on the water, and by the middle of the fourth quarter expects to begin trial processing of the concentrate.
"The effect is that we will not drop, but even increase the annual production of metal, which will also ensure a high level of metal production for many decades ahead, because the reserves of these specific ores are very large," Maslovsky said.
As for the current low gold prices, Maslovsky said that the company has enough funds to complete the construction. "But we live very economically, indeed, the price of gold does not help us so far, while it fluctuates at the level of $ 1,250." Of course, we would like more, but it allows us to work and receive free cash flow, which we completely send to complete the construction, " - the head of the company added. Petropavlovsk has already spent about $ 500 million on the autoclave complex.
At the end of June, Kommersant wrote that Polymetal Int is ready to buy out the autoclave (POX) from Petropavlovsk for $ 250 million. At the same time, Polymetal is ready to commit to complete the autoclave at its own expense and annually purchase from Petropavlovsk up to 300 thousand tons of concentrate from refractory ores for processing. Polymetal has already come out with this initiative on the company's board of directors and proposes to agree on the terms by the end of September.
Petropavlovsk Plc is among the top five Russian companies in terms of gold production. The main assets are concentrated in the Amur region, where four mining and hydrometallurgical plants - Pokrovsky Mine, Pioneer, Malomyr and Albyn - are operating, and this year the company plans to produce 420-460
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