Member Info for UpDownFlat

3rd party material transfer payments split should only be a big political issue when they have reached maximum capacity utilisation. POX hub is a long way from full capacity utilisation. Obviously, POG need to have an equitable share of the profit, but as POG have un-utilised capacity, it adds to profit and reduces cost. Even with the additional flotation plant and upgrading each of the plants to three flotation lines, they don’t reach maximum capacity.

A thought. If the new regime were crooked would they have supported a forensic investigation by a third-party auditor? Obviously, the feedback theypreviously got was “too crooked” for us too touch.
This is to instil investor confidence by washing the old dirty laundry in public. They want the large potential shareholders to buy-in.

Lawrence,
it’s a stretch to say that UCG don’t know anything about gold mining in Russia or POX. I don’t think we have seen anything dishonest so far with their behaviour. I see plenty of companies where I think this can make a 50% return if things normalise, I don’t see any others where I think this can make 200% or more in the next 12 months.

Rusty,
I am making the assumption based on the PowerPoint timetable give. They had 60 or 90 or 120 days to agree something in principal and we haven’t had an announcement so I have to assume it’s off. Also I don’t think any sale would happen without a strategic review and if they do an honest one now the answer would be don’t sell this for $10m as POG earns £8.8M per year from the guarantee.

I think you are right Jetcom. Dividend and flotation plant in the next 70 Days. Both incredibly important to the share price. Also, as IRC sale is now off the table, POG don’t have to write off the balance of the Investment in IRC which had £50m left at the end of 2019. In fact they may need to write back previous impairments which should give a nice kick to full year EPS. 0.06p per share ????? Only four months left of this truly transformational year for POG

Gold Spot is currently trading above it's all time ever high set in 2011. Hmmm that’s terrible news. It really need to trade in this terrible place for 365 days and then we are really up the creek without a paddle.

It doesn’t even have to be a favourable investigation; it was self-initiated. The very process itself is to demonstrate to shareholder that they will be clear in the future. This share is way undervalued at the moment and who know when or how this share moves up or down. Certainly not SOS.

SOS, daytraders and shorts are very welcome here, as long as you bring the cash and not just the mouth.

Management has always been this companies Achilles heel. To achieve its true value this needed to happen. Better now than in a years’ time.

Must be Warren Buffet

So they downgrade and the price goes up, they upgrade and the price goes down. Seems like noone give a toss about what they think.

God, I hope Pavel doesnt return. POG needs to move on from Pavel's fifedom and all this nonsense.

I think this is a good sign. Maksim seems to have stature and a business background. I think the Institutional Investors are the target. They will only come on board with more honest governance and a stable dividend. A rapid response was need to prevent employee departures.

If you think about this on a three year time frame (probably a little longer than the current gold bull market we are in) Stukarov will make more money as a “good” shareholder of POG then if he tries to take-over the company. He has nearly 1B shares, if the company achieves its FV in say 18 months with increased volume and a strong gold price he can make £1B profit or more. It would take him a lot longer time frame to achieve that amount of profit on a takeover. And by then the gold bull might be over.

Hell if its a bone of contention, spend another $100m and expand it to 700k ounces capcity.

Or maybe UCG just want exposure to rising gold, like the rest of us. And of course an efficiently run asset. Synergies are great if they benefit both parties. Non - utilised capacity is worthless. Imagine if we were putting out 500k ounces of gold from the POX hub for the last two years. Even if incremental marging is 15%. As long as it doesnt block internal capacity, I say use it.

If Gold was at usd3000

Hopefully Pavel will stay, he would make an excellent permanent COO.

Alya was insider trading

I have heard several people discussing the vision of building the POX hub. but Strategically it was a very poor decision for POG to build this. They didn’t have the financing nor the ability to utilise it. It was delayed for many years and drove the company to the point of bankruptcy.

Don’t get me wrong it’s a great thing to have now, at a time when gold is rallying, but POG got very lucky when it was near terminal. P&P and the BOD were no Jeff Bezos’s and POG can do a lot better in terms of management. Take a look at the 15-year share price chart. Take a look at the return on investment.

So, we as PI's should be rejoicing. The bad cards have just been thrown in for a redeal, while POG keeps the good ones.