Member Info for UpDownFlat

I think its great. POG now has a permanent CEO with experience

Yes Rusty, we don't want the pox plant not utilised, but I think if they fully cost 3rd party they will find that it is unprofitable due to the fact that it ties up large amounts of costly working capital for long periods and should be stopped. These scarce resources are better spent doing conventional mining and accelerating floatation capex. Finance is definitely a premium resouce in POG and should be allocated were they make a real return, not were it is personally politically expediant.

This is a classic example of the mixed up thinking of Pavel and Peter. Take a company with a massive cost of capital and do the most capital intensive things you can do.

POG should not be processing 3rd party at all. It ties up large amounts working capital (about 90% of the total amount). The company pays an interest rate of 8.25%. This means the net profit on this is 10%/15% less 8.25% cost of capital. When you include generalised management overhead etc, they are losing money on 3rd party or at best breaking even. And as you say there is market pricing risk. They need to drop this as a matter of urgency and focus on own production.

permanently lower costs because the utilisation of the POX hub will be around 50%. (2 long years later……..)

Currently I think they would get 4% on $200-300M. In 12 months they might get 3% on the same value.

But "NET" zero would be nice, for the optimal balance sheet.

SOS

you can tell you are not very financially aligned. It is very normal to roll debt. In fact it is healthy to maintain a certain amount of debt. 1-2 x EBITA

POG should get there.

Yes Gold price is a worry, it is dis-heartening that it is going down when it should if anything be going up. But there is the saying that the markets can continue be irrational longer then you can remain solvent.

We really need POG to start performing efficiently. I want to understand the plan going forward, since a return to the old way’s now seem out of the question.

Rband,

Yes the 200 day ave is $1801 at the moment. We are all holding our breath.

I do think that the dollar will be going down over the next couple of years. It will reduce the US trade deficite and Yellen is on record as saying a low dollar is good for growth. It will help employment as people will buy local. This will provide additional suppourt for Gold.

Personally, I think Maksim might not be a bad choice. He certainly has commitment and guts.

Rusty,

had a couple of glasses of wine when I wrote that, as you can see from the spelling. I can match argument for argument, but I don’t think it would be good to hash up the past too much. Let’s look forward to this share doubling in the next twelve months.

This is really either negligent or criminal.

The simple equation on he convertibles is the
Allow £100m to convert to equity and lose no cash and lower you debt

Or

Reissue the convertibles get no new cash. Pay out 6 years plus of interest at 8.5% and then all them to convert. All the time having a higher debt.

How can option 2 possibley be in the companes or the shareholders interest ?

No , not at the start. I believed in them. What did it for me was the convertible issue. After that everytime I looked at there actions I saw underhandedness.

investor3,
think about this, next year POG should have an increase in volume due to the new floation plant. This will bring lower cost per ounce due to a wider spread of the fixed cost element. POG will also have lower debt and less interest to pay. A new management with less "buddies" involved. You might not get your money back next week, but i think this is a good bet.

Ok so what happened is as follows, after the shareholders voted Pavel out, he and his cronies immediately changed all the articles of the subsidiaries to prevent changes from the Group. The group changed these back and Sergey and Junior filed injunctions to prevent this happening. Their basis was that the shareholders illegally changed the CEO. This has caused operational issues in the group. An example being that they wouldn’t remit funds need to pay the interest due on the $500m bond. Obviously trying to sabotage the group. But they could not be fired. These 2 court cases mean that the group can now get rid of them once these articles are amended. This is only positive news if you are a shareholder, not if your interest is destroying the company or are a follower of Pavel.

Cheesegrate, yes you are right, that's why POG are doing the KPMG investigation.

It means Sergey and pavels son will shortly be removed as directors and employees of subsiduaries and will no longer obstruct the pog group.

Judge Galina Lisovskaya refused to satisfy the claim of Sergey Ermolenko against Pokrovsky Rudnik JSC and Petropavlovsk Plc. Information on case ?04-6706 / 2020 appeared on the official website of the electronic filing of arbitration cases.

At the same time, the Arbitration Court of the Amur Region satisfied the claims of Petropavlovsk Plc to Pokrovsky Rudnik. Lisovskaya obliged the company to hold an extraordinary meeting of shareholders within 40 calendar days in order to approve the new version of the charter and early terminate the powers of the members of the company's board of directors. At the same time, Petropavlovsk, which acts as a shareholder of Pokrovsky Rudnik, should organize this extraordinary meeting.