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And another 30% dilution for the convertibles, and what is the next dilution coming ?

Are these assets not the right to mine this area , that they paid $70M for ?

Kenj,

ok so I agree that we want to purchase the rights to prospect, so we should vote “Yes” for item number (1). to approve the Related Party transaction. POG can then, either finance this through cash accumulated on B/S, or wait until the end of next year and use cash accumulated at that point.
Waiting until the end of next year is the preferred payment approach even with the £7m financing cost. This allows the company to preserve it’s current cash and use it for operations.

This doesn’t prevent them from developing the site, they have the option to buy the rights. They seem to already be developing it by putting in roads etc...As if it is a foregone conclusion.

They don’t need to have $500M at the end of 2022 to pay back debt. They can simply roll this debt over as per normal for companies. Or part roll it over at a much-reduced cost of capital. In-fact doing so would be efficient. Otherwise what would they do with the cash at this point ?

Therefore, the most sane and favourable outcome for a shareholder’s is to vote “No” to item number (2).

POG will still have the right’s; all we are talking about is the method and timing of financing.

Make sure you register your disgust by voting "No". If it fails to pass, they have to use cash. Dont let them push you into "paying for the party".

It is the cash that is really important. As long as they make the cash to pay their interest and there $8m guarantee payment to POG. At 81% they don’t make it, but at 95% they cover their obligations. If the bridge ever opens, they will be there icing. Plus, this year they should get a 10% reduction on operating costs due to Rubel and oil. As long as they can contain Hambro, they should be fine in 2020.

and I believe he has a duty to act in the best interest of the shareholders

Yes I am sure they want the shares not the cash and obviously cant get them by other means. But really doing this this is reducing your percentage ownership. This is not in the best interest of the shareholders.

Why would he shareholders sacrifice themselves for all the convertiable bondolders ? It is by far a better option to delay the payment to next year, paying the full $60m and gaining from the appreciation of the share price.

A better option for the company and shareholders would be to not get the discount now and pay in cash later.
Personally I will vote against.

Maybe this is more then the dollar

Kitco says 1629, Marketwatch Futures says 1640

It seems this rise is not necessarily due to reduction of supply, but rather a USD unwind. It does have a lot of unwind to go.

he remoteness of Russia's mines could help insulate operations from the spread of the virus, according to Market Intelligence metals and mining analyst Christopher Galbraith. "Remote mines are not immune to work stoppages amid the pandemic though [and] Vale SA's Voisey's Bay mine in Canada is one example of this, having suspended mining for four weeks," he noted. "It remains to be seen what the operators in Russia determine is the best course of action."

Petropavlovsk PLC, which focuses on the Far Eastern Amur region bordering China, is "comfortable" about meeting its 2020 guidance of 620,000 to 720,000 ounces, head of investor relations, Patrick Pittaway, said March 17. The group has three operating mines as well as a pressure oxidation plant, and it is scheduled to be included in the FTSE 250 Index from March 23.

"https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/mining-continues-as-russian-gold-sector-braces-for-coronavirus-impact-57641960"

Good to know our investment's are safe.

As gold is normally held for a rainy day, it is being used for that purpose now. Once this selling subsides investors will have to consider either gold or govement debt for the safe part of their portfolio. This should send the gold price up.
I have to guess that with the speed that this has all transpired, it will be soon.

This company must be booming at the moment. I think 30p by May, 40p by July, 50p by October. Unless Gold goes through the roof, then all bets are off.

With border restrictions and less activity in China, it might be benifical to POG in acquiring Russian refractory concentrate. Most Russian refractory concentrate is exported to China at the moment. POG still has spare capacity in their POX hub. Wouldnt that be some icing on the cake !

With the oil market about to collapse, the ruble will devalue, maybe around 10%. This means a reduction in cost for POG. POG should have a large margin expansion in the next few months. IRC to a lessor extent as the selling price is not going up.

I wonder if POG has had an easier time securing 3rd party concentrate in Q1 due to less exports to China by Russian miners?

By my calc's at the end of 2020, a P/CF of just 8x would put this share at 0.48p
By the end of 2021, 8x would put this at 0.79p
This is on a fully diluted basis (4.3B shares) at a gold price of $1,637.
Forecast volume at 680k and 780k respectively.