Interesting12 Jul 2022 17:06
Petropavlovsk in talks with two potential buyers of assets. Could Poly now buy POG's POX HUB, now POG have gone into administration.
Petropavlovsk in talks with two potential buyers of assets
MOSCOW. July 12 (Interfax) - Petropavlovsk is in talks with two potential buyers of its assets, the gold miner said in a statement.
The company has in light of difficulties servicing its debt and selling gold engaged advisers to assist the board in exploring a sale of the company's entire interests in its operating subsidiaries.
"The company has received an offer from one party to acquire and a proposal from another party expressing an interest in the acquisition of those subsidiaries. Discussions with both parties are ongoing. There can be no certainty that either will result in a sale and it is highly unlikely that there will be any return to shareholders given the level of the Group's indebtedness," the miner said.
Polymetal , Russia's largest silver producer and one of the country's biggest gold miners, considered buying Petropavlovsk's then unfinished POX Hub in 2018, national daily Kommersant reported. Polymetal offered to buy the POX Hub for $250 million, to finish building it at its own expense and to buy certain volumes of refractory ore from Petropavlovsk for the hub to process. But Polymetal itself launched the hub's first autoclave at the end of 2018. The complex now consists of four operating autoclaves with combined capacity of up to 500,000 tonnes of refractory ore concentrate per year with the possibility of adding two more.
Kommersant has also quoted sources as saying Urals Mining and Metallurgical Company or UMMC is interested in Petropavlovsk and has even submitted a request to the Federal Anti-monopoly Service. But it is unclear whether UMMC wants to buy the company itself or selected assets. UMMC declined to comment on relations with Petropavlovsk. Gazprombank has transferred the rights to a loan of $201 million for Petropavlovsk to a company connected to UMMC.
Petropavlovsk, which mines gold ore deposits in Amur Region, is one of Russia's top five gold producers. Uzhuralzoloto Group of Companies or UGC, which is controlled by Konstantin Strukov, remains Petropavlovsk's largest shareholder with about 29%.