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The locals were promised to be relocated at least a kilometer from the quarry, but in the end they were only pushed back half a kilometer. Now cracks are spreading along the walls of the houses of the village, threatening at any moment to collapse like a house of cards.
I wonder if these investors will take into account these features of doing business by Strukov.
http://utro-news.ru/strukov-zhazhdet-bolshe-zolota/
And now Yuzhuralzoloto disputes the additional taxation of 36 million, as Pravda Urfo wrote about . Most of the revenue comes from a foreign organization. The companies received additional income tax of 5.4 million rubles, a tax on income received by a foreign organization from sources in the Russian Federation of 27.7 million rubles and a fine on it of 3.8 million rubles, as well as a fine for incomplete payment of taxes of 135 thousand . rubles. The offshore UGOLD LIMITED, which owns 5% of the company, looks very appropriate in the structure of Yuzhuralzoloto Group of Companies JSC.
Insolence is the foundation of Strukov’s business?
In the spring of 2019, Rostekhnadzor, by a court decision, halted the operation of the Tsentralnaya gold mine in the city of Plast, Chelyabinsk Region. Otherwise, the leadership of the mine did not want to eliminate a ton of violations identified by the department. This was written by " Documents and Facts ."
The condition of the mine was so terrifying that workers died there. So, in 2018, two people died at the “Central”: one killed by electric shock, the rock fell on the other.
In 2017, in the same mine, as a result of a sudden collapse of the roof of a mining mine, two more miners were killed, the third drifter, who was under the rubble, was saved. Strange, but despite the fact that the Investigative Committee joined the case, the perpetrators were not found.
Strukov does not give a damn about not only safety precautions in his enterprises, but also to ecology.
For example, after the development of gold mines in the village of Sibay in Bashkiria, they were left unowned until the earth caught fire there. All nearby territories were drowned in smog, and the locals literally choked in smoke.
A similar terrible situation occurred on Lake Kurochkino near Kopeisk Chelyabinsk region. Strukov did not take care of the reclamation of the worked out territories, and the land caught fire in the sludge pits, creating a threat of collapse.
Due to the huge territory of the fire and the mass complaints of residents, local officials were forced to introduce an emergency regime in Kopeisk, and Governor Boris Dubrovsky had to hurry to seek out funds in the budget to eliminate the consequences of the carelessness of businessman Strukov. According to Pravda Urfo , the entrepreneur himself allegedly refused to solve the problem.
And in the village of Rosa continues to slide into a giant steaming pit more than 500 meters deep, where billionaire Konstantin Strukov mined coal. Since 2017, the Korkinsky opencast has been closed, but coal in the pit continues to ignite, raising columns of smoke and spreading poisonous substances around. This was written by MorningNews .
The locals were promised
Google translate
26.06.2020 1
Strukov craves more gold
Shares of the gold mining company Petropavlovsk began to be traded on the Moscow Exchange. Now the company is more attractive in the eyes of investors, but is Konstantin Strukov, its largest shareholder, so attractive?
According to the UtroNews correspondent , during the first hour of trading, the shares of the fifth gold mining company in Russia, which has been traded on the London Stock Exchange since 2002, rose by almost 6%, rising to a maximum of 34.1 rubles apiece. Last year, the company increased gold production by 22%. Strukov's welfare is growing by leaps and bounds.
Forb estimates Strukov’s fortune at two billion dollars. This year, Strukov, who also holds the post of deputy of the Legislative Assembly of the Chelyabinsk Region, was included in another prestigious shortlist: he took second place in the ranking of the richest deputies and public servants of Russia. What is the secret of the golden magnate's stunning victories? Maybe in the impudence of doing business?
Three years ago, the presidential envoy in the Siberian Federal District, Sergei Menyaylo, scolded him for stopping the Darasunsky mine in Transbaikalia. Billionaire sold an unprofitable mine with a big discount. Not only did the mine stir up a strike of workers who were not paid wages, but illegal gold mining was still underway at the mine. This was written by Forbes .
After the new owner corrected matters with the help of Promsvyazbank at the city-forming enterprise, Strukov was right there, claiming the rights to the sold business.
By the way, when Strukov bought the Darasunsky mine in August 2007 for $ 15 million, a month later Yuzhuralzoloto CJSC filed a lawsuit for bankruptcy, apparently having previously transferred the assets to the new OJSC Yuzhuralzoloto Group of Companies. Strukov argued that the reorganization was preparation for an IPO. But it was said that bankruptcy was fictitious, and the company wants to get away from paying a debt of 6.3 million dollars.
Strukov applied the same scheme when he entered the post of head of Chelyabinskugol (100% of the company later became part of Yuzhuralzolot). Forbes talked about her . The company's debts at that time exceeded 4 billion rubles. Strukov gradually bankrupted 26 enterprises that were part of Chelyabinskugol, and transferred his assets to a new company.
“I will eat your hat as soon as you have more money than mine!”
In 2018, police searched the office of Yuzhuralzolot in Chelyabinsk and Plast, but Strukov did not even brow. Security officials checked tax documents and questioned employees and managers. The reason for the raid was the initiation of a criminal case on tax evasion. This was written by the publication MorningNews .
Strukov allegedly "squeezed" a billion taxes, which is what interested the employees of the Chelyabinsk branch of the Lubyanka. After that, Sturkov allegedly returned 300 million rubles. Put the rest in reserve?
Shares of the gold mining company Petropavlovsk began to be traded on the Moscow Exchange. Now the company is more attractive in the eyes of investors, but is Konstantin Strukov, its largest shareholder, so attractive?
http://utro-news.ru/strukov-zhazhdet-bolshe-zolota/
There are old ’stories’ about Konstantin Strukov i russian papers. Don’t know if it is true or if it matters now?
Some of them: (Google translate)
”...The loud scandal with non-payment of salaries and the sale of the Darasunsky mine in the Trans-Baikal Territory, along with the environmental problem of the Korkinsky coal mine, seriously damage the image of the owner of Yuzhuralzoloto Group of Companies as a responsible industrialist and employer. The name of Konstantin Strukov is increasingly mentioned exclusively in news reports about accidents at his gold mining mines,
https://fedpress.ru/article/1868843
”...After the death of a worker in the mine "Yuzhuralzolota" opened a criminal case
A criminal case was opened on the fact of the death of a worker in the mine of a deputy of the Legislative Assembly of the Chelyabinsk Region Konstantin Strukov.
https://www.google.se/amp/s/newdaynews.ru/chel/645580.html/amp/
THE ADMINISTRATION OF THE KEMEROVO REGION ACCUSES KONSTANTIN STRUKOV
A new scandal erupts in the South Urals: they are going to initiate a criminal case against the deputy of the Legislative Assembly Konstantin Strukov. The initiator of the investigation was the administration of the Kemerovo region. Officials say that Kuzbasspolimetal, owned by Strukov, is delaying salary payments.
The enterprise Kuzbasspolimetal was founded by Konstantin Strukov. He owns 70% of the company. The Kemerovo regional administration believes that the South Ural deputy is hiding abroad from the governor of Kemerovo. However, as Vladislav Pisanov, the assistant to Konstantin Strukov, said, the businessman is in Chelyabinsk and works for the Coal Company. In addition, the deputy himself had long wanted to talk with the head of the Kemerovo region and talk about the situation at the enterprise. According to Strukov’s representatives, the deputy has been excommunicated for more than a year from the leadership in Kuzbasspolimetal. His companion Vitaly Gorshkov is trying to take over the enterprise. Konstantin Strukov himself has not yet commented on the situation.
Brokers Rating
June 3, 2020 ATON
In this report, we review mid-cap gold mining companies (HGM and POG)... Petropavlovsk is cheap - 3.9x 2020? EV / EBITDA, and we see a 10-15% revaluation potential associated with a decrease in the debt burden, the resumption of dividends and reaching the full capacity of Pokrovsky AGK.
www.brokers-rating.ru/reviews/?id=17253
PRIME June 2, 2020
Petropavlovsk results for 2019. Note that the company changed its policy for accounting for the cost of opening layers of waste rock in its fields, which led to a recalculation in the direction of increasing historical EBITDA values.... in April of this year, the company adopted a new hedging policy, which implies the sale of 3.5 thousand ounces per month at a price limited to the range from 1,600 to 1,832 dollars per ounce..... In 2H 2019, Petropavlovsk showed a significant increase in net operating cash flow to 3.8 billion rubles, despite the negative contribution from changes in working capital (mainly the effect of physical accumulation of reserves). It should also be noted a decrease in capex by more than 40% p.p.
We expect EBITDA to reach RUB 27.7 billion. in 2020 (28.7 billion rubles in 2021), as well as an increase in operating cash flow to 12.8 billion rubles. in 2020 (20.6 billion rubles in 2021). The company's forecast for capital investments is 5.6 billion rubles. in 2020 (5.5 billion rubles in 2021). After putting into operation of the autoclave complex, the peak of the capital investments of Petropavlovsk can be considered passed, which should contribute to the growth of free cash flow in subsequent years. Accordingly, we estimate free cash flow at the level of 5.0 billion rubles. in 2020 (14.2 billion rubles in 2021). This will lead to a reduction in the debt burden to 1.3x already in 2020... 0.8x in 2021). Recall that current covenants prohibit the payment of dividends if Net debt / EBITDA exceeds 2x. We do not expect dividend payments during 2020-2022. due to the need to redeem bonds in the amount of $ 500 million in 2022, we believe that the company will accumulate liquidity over this period. Petropavlovsk also disclosed key production indicators for the 1st quarter. 2020...The increase in production was largely due to the purchase of third-party concentrate, while the production of gold from it is less marginal in comparison with the processing of independently mined ores. Note that due to the significant increase in total gold production in 1 quarter. 2020 in absolute terms, an increase in the share of less profitable precious metal production from concentrate purchased on the market should not negatively affect forecasts of financial results for 2020.
In the segment of second-tier securities (with increased debt burden), in our opinion, POGLN 22 bonds (with YTM 6%) have one of the best combinations of profitability and credit risk. Favorable conditions on the gold market (there are fundamental reasons for continued growth in gold prices) compensates for the increased debt burden, while the premium to PGILLN 22 in the amount of 420 bp It looks redundant (at the beginning of the year until March it was less than 300 bp, but now gold prices are higher, which should contribute to narrowing the premium).
Link in russian full analysis: www.google.se/amp/s/1prime.ru/amp/experts/20200602/831554689.html
June 02, 2020 09:01
Renaissance Capital began analysis of Petropavlovsk with a buy recommendation for the company's shares
Renaissance Capital investment company has launched an analysis of Petropavlovsk, investment company analysts Steven Friedman, Darik Deel, Johann Pretorius, Cabelo Mosheš and Sifelele Mhlongo report in their review.
The predicted value of the gold miner’s shares, calculated by experts, is 32 pence apiece, a recommendation for his securities was given to “buy”.
The current value of Petropavlovsk securities is about 25 pence apiece.
Petropavlovsk is engaged in the industrial development of gold deposits in the Amur Region, and is among the top 5 Russian gold miners. The largest shareholder of Petropavlovsk with a share of about 22% is Yuzhuralzoloto, which is controlled by the family of Konstantin Strukov.
http://www.finmarket.ru/analytics/5249229
Shareholder UGC= Yuzhuralzoloto= Uzhuralzoloto
Link company website:
http://www.ugold.ru/en/
Owner Konstantin Strukov
Forbes article on Strukovs/UGC business history from year 2017
” ...Strukov tried to bring the company to the stock exchange, but the Yuzhuralzolota IPO broke down twice - in 2008 due to the crisis and in 2011. Now, one of the options may be to join with one of the competitors, argues Strukov: “You need to build relationships in any business, position yourself so that you always need someone. Then you are not afraid of any competition.... "
https://forbes.ru/biznes/346359-prostoy-staratel-zachem-vladelcu-yuzhuralzolota-ponadobilas-moskva”
”... processing will not be a problem for the company, Black agrees, especially since there is the possibility of synergy with Petropavlovsk: the company has free autoclave capacities....”
Google translate
April 28, 14:26 / Business
Yuzhuralzoloto will build a processing plant for $ 250 million
This will allow the company to increase gold production by 20%.
Yuzhuralzoloto Konstantin Strukov will build a mining and processing plant at the South Kurasan and Western Kurasan deposits in the Chelyabinsk Region, a company representative told Vedomosti. A mining and processing enterprise with a capacity of 4 million tons of ore per year will cost $ 250 million and will allow for the production of 3.5–4 tons of gold annually. The construction of the new plant is scheduled for completion in January 2022, the enterprise’s projected capacity is planned for 2026. The project will be financed from the company's own funds.... Maximizing gold mining from refractory ores is a promising area, said ACRA Senior Director Maxim Khudalov. Russia already has extensive experience working with refractory ores, so their processing will not be a problem for the company, Black agrees, especially since there is the possibility of synergy with Petropavlovsk: the company has free autoclave capacities.
The content of precious metals in “Southern Kurasan” and “Western Kurasan” is high - 5-7 g / t and 3-4 g / t, respectively, cites Khudalov’s data. At current gold prices ($ 1,723.8 / ounce), the mining and processing plant project is economically efficient. Even if metal prices drop to $ 1300-1400 / ounce, the project will pay off in 5-6 years, Khudalov is sure....
www.vedomosti.ru/business/articles/2020/04/28/829192-yuzhuralzoloto-postroit-fabriku
Google translate
Vesti.ru
June 1, 202002: 26
Petropavlovsk and Yuzhuralzoloto may create a joint venture
In Russia, a new largest gold mining company may appear, which will also become one of the main producers of precious metal in the world. As Petropavlovsk CEO Pavel Maslovsky said in an interview with The Daily Telegraph, the company began negotiations on a merger with Yuzhuralzoloto (SGC).
“This [merger] can certainly happen, because the company [YuGK] is private, and it can happen quickly,” Maslovsky quoted the publication as saying that negotiations are still at an early stage.
Petropavlovsk is already one of the largest gold mining company in Russia. Its main assets are concentrated in the Amur Region. There are four companies of the company there - Pokrovsky Mine, Pioneer, Malomyr and Albyn. SGC is also a major player, its assets are located in the Chelyabinsk region (the existing fields are Svetlinskoye, Kochkarskoye, Bereznyakovskoye, Western Kurasan, as well as licenses for exploration and pilot production - Nailinsky, Oseysky, Altyn-Tash, Zaitsevsky), the Republic of Khakassia (OJSC Kommunarovsky Mine) and the Krasnoyarsk Territory, where the group is developing alluvial gold deposits (LLC AS Priisk Drazhny, LLC Sovrudnik).
https://www.google.se/amp/s/amp.vesti.ru/v/s/amp.vesti.ru/doc.html%3fid=3269882&_js_v=0.1&usqp=mq331AQFKAGwASA%253D#ampf=
Google translate
... to the pandemic, but there are no significant obstacles to the implementation of the project, I am sure Cherny. Gold has historically been a safe haven in times of market volatility, but no one is safe from a situation where, for example, it would be necessary to suspend production in the event that sick people are found at the enterprise, he remarks: “Now it’s almost impossible to make forecasts on commodity markets, but the bullish trend is the gold market, albeit not so explicit, will continue to exist. ” A.
https://www.vedomosti.ru/business/articles/2020/04/28/829192-yuzhuralzoloto-postroit-fabriku
Numbers on the discussed merger
Google translate
April 28, 14:26 / Business
Yuzhuralzoloto will build a processing plant for $ 250 million
This will allow the company to increase gold production by 20%.
Yuzhuralzoloto Konstantin Strukov will build a mining and processing plant at the South Kurasan and Western Kurasan deposits in the Chelyabinsk Region, a company representative told Vedomosti. A mining and processing enterprise with a capacity of 4 million tons of ore per year will cost $ 250 million and will allow for the production of 3.5–4 tons of gold annually. The construction of the new plant is scheduled for completion in January 2022, the enterprise’s projected capacity is planned for 2026. The project will be financed from the company's own funds, the source said. The total amount of investments until 2022, the company does not disclose. Her representative only emphasized that there are a number of large-scale projects in the plans.
At the end of 2019, the company produced 14 tons of gold, the plan for 2020 - 18 tons, the representative said. Thus, the launch of a new processing plant will increase this figure by 20–22% from the level of the previous year. Yuzhuralzoloto sells all gold produced to Gazprombank, said Yury Cherny, first vice president of Gazprombank.
The reserves of the South Kurasan and Western Kurasan deposits, from which the ore is supposed to be processed at the new plant, are estimated at 80 tons of gold and 250 tons of silver, the representative of Yuzhuralzolot noted. Now at these deposits there is only a heap leaching site with a capacity of 105.5 kg of gold. In total, the company has five factories with a processing capacity of 25 million tons of ore annually.
Yuzhuralzoloto, the fourth largest gold producer in Russia, is developing deposits in the Chelyabinsk Region, Krasnoyarsk Territory, and the Republic of Khakassia. In February 2020, the company acquired 22.4% of Petropavlovsk (the fifth largest gold producer in the country) from Roman Trotsenko’s structures.
Maximizing gold mining from refractory ores is a promising area, said ACRA Senior Director Maxim Khudalov. Russia already has extensive experience working with refractory ores, so their processing will not be a problem for the company, Black agrees, especially since there is the possibility of synergy with Petropavlovsk: the company has free autoclave capacities.
The content of precious metals in “Southern Kurasan” and “Western Kurasan” is high - 5-7 g / t and 3-4 g / t, respectively, cites Khudalov’s data. At current gold prices ($ 1,723.8 / ounce), the mining and processing plant project is economically efficient. Even if metal prices drop to $ 1300-1400 / ounce, the project will pay off in 5-6 years, Khudalov is sure.
But the expert considers the timing of the project to be ambitious, so we can expect their shifts due to the difficult situation on the market. It is necessary to make a reservation for unpredictable market circumstanc
Google translate
Petropavlovsk and Yuzhuralzoloto consider merger
TASS, June 1. Gold mining companies Petropavlovsk and SGK (Yuzhuralzoloto) are considering a joint venture. This newspaper The Daily Telegraph said Petropavlovsk CEO Pavel Maslovsky.
"This [merger] can certainly happen, because the company [YuGK] is private, and it can happen quickly," the newspaper quoted Maslovsky as saying.
It is noted that negotiations between the companies are at an early stage. According to The Daily Telegraph, in the event of a successful transaction, the combined company will become the largest gold mining in Russia and one of the main producers in the world.
Petropavlovsk is one of the largest gold mining companies in Russia. The main assets of Petropavlovsk are concentrated in the Amur Region, where four mining enterprises operate - Pokrovsky Mine, Pioneer, Malomyr and Albyn. Gold miner Yuzhuralzoloto of the Konstantin Strukov family is the main shareholder of the company with a share of about 22.4%.
https://www.google.se/amp/s/tass.ru/ekonomika/8612041/amp
https://uk.finance.yahoo.com/news/mining-giants-petropavlovsk-ugc-explore-161751558.html
https://www.telegraph.co.uk/business/2020/05/31/mining-giants-petropavlovsk-ugc-explore-merger/
” So how the hell can POG reduce their debt?”
Would it be possible by introducing dividends higher than 8,5 % , so the bondholders would prefer to convert?
https://www.google.se/amp/s/1prime.ru/amp/experts/20200526/831513666.html
INTERVIEW: Prosperity Capital CEO
May 15, 2020
”...Prosperity is the most successful portfolio investor in Russia and the former Soviet Union.... A Swedish national, Westman has been investing in Russia for 27 years and launched his firm’s flagship Prosperity Fund 24 years ago. Before becoming stockbroker, he served on the Russian desk of the Swedish Ministry of Foreign Affairs, having learnt Russian with the Swedish Armed Forces.”
www.intellinews.com/interview-prosperity-capital-ceo-forecasts-russian-oil-majors-will-survive-as-rivals-go-bust-183297/