Member Info for UpDownFlat

Retired banker,
IRC have $$20/25M tied up in unshipped Q4 inventory. So really their underlying cashflow should have been around $40m in Q4. Add to that a similar number for Q1 as iron ore prices have held up, if they shipped and there is no "surprise issue pulled out of the hat" they should have a lot of cash generated in Q1.
I totally agree with you on the management though, anyone from the families of Hambro or Maslovskiy really need to leave IRC and POG.

And the share price went from 50p to 300p over the 4 years that Denis was there. And they paid a dividend.

Personally I would be very happy with that.

Stukov's obviously an idiot who doesn’t understand that.

Stukov might want to take over POG, but not when there is a fair risk that it would put him in the poor house. Don’t think you can take that one to your risk committee!

If you are not a wacko who believes gold is going to $10,000 but, still want to make a multiple return, you should support a descent turnaround of this company. Obviously if it goes to $10,000 it doesn’t matter who’s right.
But if gold goes to $1000, it matters who is right !

If Strukov's evil plan was to take over POG on the cheap (+$550m debt), why would he allowed the BOD to hire Denis Alexandrov ?

Maybe in eighteen months time, POG could be a takeover target, hopefully, but at the moment its just far too complicated "and" needs to turnaround before anyone could attempt to merge it. I am really thinking about the utter dependency on the price of gold. Most companies would run in fear that it would destroy their covenants if gold went down and they would be ruined.

I think there might be an impairment reversal of the investment in IRC at POG. They also get 31% of this as an associate. So headline EPS might have some upside.

After the 6th of April please, and make it ambitious.
Also I want to see the Strategic plan.

which is about a three-year plan. So if you want to make money in the next three weeks you should look elsewhere.

That's quite a culture change for POG.

do you know how much of a following you have to have to bring 10 people with you at start ?

I've seen CEO's bring 4/5 people with them before, and more over time. Hell I've been one of them. But 10 people, at start , thats impressive.

Lets hope it end up like highland gold, how many times did it increase ?

and this one via the link is quite interesting

https://translate.google.com/translate?hl=en&sl=ru&tl=en&u=https%3A%2F%2Fprofile.ru%2Feconomy%2Fzolotoj-zakat-pavla-maslovskogo-567194%2F&prev=search&sandbox=1

all in all quite encouraging (I am not joking). Thanks for that Lawrence.

If Strukov buys more shares the company has to report it on an RNS so he hasn’t bought any. Additionally, as Pavel only owns 0.01% (less then £1m), I can hardly see anybody pressurising him to sell that, it’s nothing.

Gazprom bank have a larger say in the process then everyone see’s. Pavel seems to have left them with the bill, on many previous occasions.

I also very much doubt POG has the cash to financially bail out anybody.

DA should rid the company of any non - complaint staff. It solves multiple problems.

Actually Rusty you are wrong. The share price drift is not because the board are saying to much or too little, the share price drift is because this share is not making a return.

Pay a dividend to the shareholders.

Andy,
why is Strokov my mate ? What have I said about him in the past? Very little or nothing really. As far as I can see he is just a shareholder who doesn’t want to be taken for a ride.
Ok so you mention staff numbers, just over 9000 from the accounts and website. My rational regarding them being overstaffed is compared to other gold miners. AU/Head and really just around the costs. That’s why they make no profit when the price of gold goes down, but their peers do. That’s why their break-even is around 30%. Almost all businesses adjust their cost base to their business environment.
It is very normal to do that.

Reduce headcount, reduce headcount, reduce headcount

3rd party has 15% GM as I predicted 15 months ago. But it ties up WC which carries an 8% interest opportunity cost in the form of not reducing prepaid gold/financing in general. Leaving just 7% GM. Overheads are much greater than 7% and there are probably more than 7% directly attributable costs associated with 3rd party.

Breakeven for the company is 30% GM due to high overhead. But overhead absorption is not an argument to continue doing this, as it is purely a technical accounting exercise and doesn’t translate to cash.

3rd party also ties up more capital in a highly leverage business thereby increases the overall cost of capital by worsening the profile.

I believe this (as the case in many of the previous decisions) was done purely to create jobs for people.

The staff were given an average 20% (In USD) pay increase at the end of 2019. USD inflation was under 2% at this point in time. That is just not good business management.

A good business decision/strategy would be to get rid of 3rd party concentrate and reduce overheads by reducing headcount.