Member Info for rustybucket

30 June 2020
Results of Proxy Voting on Board Appointments at the Petropavlovsk Annual General Meeting (“AGM”) and Appointment of four New Directors.
Petropavlovsk PLC (“Petropavlovsk” or the “Company”) announces the appointment of four new Directors with effect from the end of the Annual General Meeting to be held at 11.00am on 30 June 2020.
The new directors are Mr Peter Hambro (Non-Executive Chairman), Dr Alya Samokhvalova (Chief Executive Officer), Mr Johnny Martin Smith (Independent Non-Executive Director) and Ms Angelica Phillips (Independent Non-Executive Director) (together the “Temporary Directors”). Biographical details of the Temporary Directors will be announced shortly.
Proxy voting on the resolutions submitted to Petropavlovsk at the AGM have been cast to elect four Directors: Mr Maxim Kharin (a Director nominated by UGC) and Mr James Cameron, Mrs Katia Ray and Ms Charlotte Philipps as Independent Non-Executive Directors. The following candidates unanimously proposed by the Board for election or re-election have not been elected or re-elected: Dr Pavel Maslovskiy (CEO), Mr Danila Kotlyarov (Chief Financial Officer), and five Independent Non-Executive Directors: Ms Fiona Paulus (Chairman Designate), Mr Harry Kenyon-Slaney (Senior Independent Director), Mr Robert Jenkins (Chairman of the Audit Committee), Mr Damien Hackett (Chairman of the Risk Committee) and Mr Timothy McCutcheon.
Following the AGM, the Board will comprise Mr Peter Hambro (Non-Executive Chairman), Dr Alya Samokhvalova (Executive Director and CEO), Maxim Kharin (Director Nominated by UGC) and the following five Independent Non-Executive Directors: Mr Johnny Martin Smith, Ms Charlotte Philipps, Ms Angelica Phillips, Mr James Cameron and Mrs Katia Ray.
Analysis of the voting shows that the votes against the existing board members were cast almost entirely by four shareholder groups – Joint Stock Company “Uzhuralzoloto Group of Companies” (“UGC”) (22.37%), Everest Alliance (“Everest”) and Slevin (12.09% combined) and Fortiana Holdings (4.62%)1.
The overwhelming majority (by number) of the Company’s other shareholders voted to support the Board and Executive Directors who have led Petropavlovsk to outstanding success over the past year. However as the turn-out of voting shareholders was only approximately c.73%, the minority views of the four parties holding approximately 39.08% prevailed over the views of the remaining shareholders.
In the Board’s opinion, the outcome of the voting has been engineered by Mr Konstantin Strukov’s UGC and Mr Nikolai Lustiger (who has over the past two years represented the combined interests of Everest and Slevin) at the expense of the Company’s good governance and effective management, and against the wishes of the independent majority of shareholders.
At the Board’s meeting on the 24 May 2020, the nominee Director of UGC, Mr Maxim Kharin, voted with other Directors in giving unanimous approval to the re-election of the current Bo

Not a problem, Drice, just sorry, can't shed any more light on it.

It looks like that statement has come from the credit agency, but, I don't think POG would publish a statement without some credence. Time will tell.

Its still on dogs website. 24 June 2020 Petropavlovsk PLC
S&P Global Ratings Upgrade to ‘B’; Outlook Stable on Solid Performance
Petropavlovsk PLC ("Petropavlovsk" or the "Company") is pleased to announce that S&P Global Ratings (“S&PGR”) has upgraded its long-term issuer credit and issue ratings on Petropavlovsk and its senior unsecured bonds to ‘B’ from ‘B-’ with a Stable Outlook.
In its announcement, S&PGR highlighted its decision to upgrade Petropavlovsk’s issuer rating was based on its expectations the Company “will continue to report solid results in 2020-2021 on the back of its operating performance stabilizing and supportive gold prices”, and that the Company would “maintain leverage at its public target of net debt to EBITDA below 2.0x and adequate liquidity, including by proactively refinancing the 2022 notes.”
S&PGR stated that the Stable Outlook reflects its view “that the Group will continue to deliver on its strategy, while maintaining S&P Global Ratings-adjusted debt to EBITDA sustainably below 3.5x and funds from operations (FFO) to debt sustainably above 20%”.
Commenting on the ratings upgrade, Dr Pavel Maslovskiy, CEO said:
“S&PGR’s upgrade to B with a stable outlook is aligned with Petropavlovk’s strategy of delivering value to all of our stakeholders. The stronger debt rating is in step with progress being made on the stronger rating of our equity; both of which are in the early stages of benefitting from the Company’s ability to harness returns - not only from our leading position in Russia with the Pokrovskiy pressure oxidation hub - but also from our significant installed asset base, which has over 20m unhedged ounces in JORC reserves and resources.

MikeSE1 absolutely, IF, we are able to, and if it doesn't cost more in early interest and in fees, that just to leave. Interestingly the figures from that re rating to free flow cash, are considerably less than those of some posters.

Pog shareholder Not PIG, BLOODY auto correct on computer.

Updownflat, There has been no one more vocal than me about Pavel Peter and the bod. I wasn't suggesting you sell up, just, this is POG, It is never exactly as it should be, and there is always something brewing or smouldering beneath the surface, I agree that we should be vocal, but, I personally, prefer to be vocal, about something I know about, and I am not going to discount something which could be beneficial.

The bonds have to be sorted sometime, I don't know if there is any way they can repurchase these without bondholders consent before maturity, but we know they will have to be managed before 2022, which in the life of a pig shareholder is not a long time.

As I have alluded to earlier, I do not believe we will be in the position to repay these in full at maturity. It does not need to be in bonds. Someone like Gazprombank ( I think thats how you spell it ) may be interested in providing funds, like they have done for IRC, and be paid in gold by forward buying it.

Or it might be they offer a new bond issue at a lower coupon, the bondholders wouldn't agree to this unless there was some incentive, but if in the longer term any of those were cheaper options, they should be considered.

Due to the market cap increasing it is not out of the question altogether, to have another rights issue, but, this time not to bail out the company, but to help the company expand and prosper.

There is also the possibility of a merger with the larger shareholder who I believe, is cash rich.

So a number of options, there will probably be others, most would be subject to shareholder approval, but I believe all options should be considered. My opinion only.

Mikese1, haven't read all the posts yet, and perhaps I should before I post, BUT, the $500m of bonds. Are NOT convertibles. Its the $125 m due 2024 which are the convertibles.

UpDown Flat, if that is your opinion, then you should sell. Pavel has got a stake hear himself, and a number on hear think he has convertible bonds, although this has not been confirmed. The bonds have to be dealt with, at some point, so we will have the fees, whenever, because it is highly highly unlikely, we will have any where near enough money to pay them off.

So, if we can arrange something now, which is on a lower coupon rate, it is worth considering, as long as any fees, do not defeat the object. But, in my opinion it shouldn't be poo pooed, until there are facts.

I have and will be critical of the bod when I feel it is appropriate, but, Peter and Pavel, could have caved in before the rights issue, when Pavel was ousted during a boardroom coup, and when Sapinda tried to wrestle control. But like them or loathe them, they devised a plan which ultimately saved the company, and allowed personal investors to stay invested as long as they had the funds.

I have long been critical, but only after facts were known. I suggest we take a view of wait and see. The company is in a better financial state, lets see if they can work it to our advantage.

There should never be much disparity between the 2 as it is exactly the same shares being bought and sold.

Some people in the past have made money out of buying and selling in 2 different indexes. Too complicated for me.

Don't think that will happen with these, that was the convertibles.

Kenj, I think they would, but only if they got the opportunity to invest in any new offerings, and with an incentive. Like they did with the convertibles.

But, they are not going to do it willy nilly, and if they were to refinance these we need to ensure, they don't pay out more in fees, than the potential savings, something which seems to have been prevalent in the past, if you read ( and believe ) the reports, from, I believe, Sapinda.

DrJamain, that is a question that remains unknown. But, as they have had the costs of getting it out of the ground, and they know the profit that can be derived from it, I would not think it would be low. Otherwise they would just buy boat loads of it.

Why even mine our own, if it was so cheap. I do not think it will be the case, and think it will change as the gold price changes.

Thats why POG talked about joint ventures. Probably not something we will ever know exactly although a very good accountant might be able to hazard a good guess. Time will tell.

Their operating costs might be set, BUT, the price they pay for Concentrate is not. And as a lot of any increased production will be from concentrate, it is unlikely we will make anywhere near as much from third party concentrate.

Personally I would favour, building up cash reserves, to try and buy the rest of TEMI, in cash, thank god they got voted down with the plan at the sp they were going to do it at !!!!

Next start to agree what they will do with the first lot of bonds to mature, I think its impossible to have the money to repay them all, so repay some of them and then, hopefully, a new bond issue, at a lower coupon rate, which should save us interest, especially with the re-rating of credit.

You then have the equation, what is the best use of excess funds ??? A share buy back, dividends, purchase more concentrate, or a combination of the 3.

I think the share buy back in normal circumstances is a good idea, but, have we not missed the boat with that, dividends, well that always attracts investors, and after the bonds have been sorted, should be a reality.

Buying extra concentrate at this moment would be my choice, as that brings instant dividends and should help cash flow. As always, thats my opinion, and anyone else is entitled to there own.

Shedulike, there were a number of posters, myself included, who were very cautious with there predictions. Actually I think 5p to 30p is a fantastic performance, and I would take that every time.

If you know of any other shares that have got that potential for the next 5 years, because personally, I can't see POG getting £1.80 in 5 years.

Of course, I would love to be proved wrong, but, with the extra number of shares that are likely to be in existence, due to the convertible bonds, I can not see it happening. But still plenty of mileage long term, but as others have alluded to, less value now, that was available at the rights issue. For obvious reasons.

No stock around, ridiculous statement. M and G have sold off 2 lots, typical pump and dump. I hope I am wrong for genuine investors sakes, but don't get caught out.

Goof luck all.

It must have been in a dream, Not a chance.

In my opinion, they will just be trading the existing shares, but, like our shares are held either in paper form the old way or electronically, maybe thats the way it is done in Russia.

The reality is, if its a new listing, you can bet there are going to be some people wanting these. Depends on how many sellers there are about. Interesting next month or so ahead.

CofE, well done on that, you have posted a number of times about buying stock, when you had the funds, So Well done.

End of June, the end of september is acceptance into another tier of that maybe something like the FTSE250.

The proposed secondary listing is complementary to Petropavlovsk's primary listing on the London Stock Exchange where the Company's ordinary shares will continue to be admitted to trading.

By undertaking a secondary listing on MoEx, the Company expects to benefit from investor base diversification and participation, with access to an enlarged investor pool of Russia based investors not currently present and, in some cases, unable to purchase shares in London. The Company believes the secondary listing will also result in improved liquidity, enhanced trading volumes and increased brand visibility. In addition, the Company may be eligible for inclusion as part of the MoEx Russia Index / RTS Index, subject to criteria being met at the next applicable assessment date in September 2020.

Subject to approval of listing documents, admission to and the commencement of trading of the Company's ordinary shares on MoEx is expected to take place by the end of June 2020. A further announcement will be made by the Company following approval of the secondary listing.