We would love to hear your thoughts about our site and services, please take our survey here.
Comments on this?
Prosperity (who owns 15 % of POG) has in the March analysis of possible dividends Year 2021-2022 from russian companies also in below link Petropavlovsk included (with 22-36% yield!). I thought rules concerning the bonds and warrants made dividends impossible?
Link Prosperity analysis om dividends 2021-2022:
https://fmdata.blob.core.windows.net/prosperity-documents/fe1d93ef6e22487f8bec4c0e65fa94cd/Prosperity%20Analysis%20-%20Taking%20stock%20and%20business%20update.pdf
” "Gold prices are on the rise in Russia as it's traded in rubles. So now the gold-mining companies are getting incredible profits", Vyazovsky says.”
https://nation.com.pk/23-May-2020/russia-strives-in-endeavour-to-preserve-global-gold-market?show=preview
Difference ’refractory ore’ and ’twice refractory ore’, anyone?
”... designed to extract gold from concentrates of twice refractory gold-bearing ores..
MAY 16, 2020
The world's largest gold mining autoclave will be delivered to Amursk
Polymetal Company expects delivery of unique equipment to Amursk for the second stage of the Amur Hydrometallurgical Plant. The second autoclave AGMK will become the largest in the world gold industry, reports the Khabarovsk Territory Today.
The weight of the autoclave is about 1,100 tons, length is 50 meters, Belgian equipment is designed to extract gold from concentrates of twice refractory gold-bearing ores. Transportation from Europe to the Khabarovsk Territory is planned by water, part of which cargo will pass along the Amur. The delivery of the autoclave is the responsibility of the general contractor logistics company Key Point Logistic LLC, delivery is expected in the third quarter of 2020.
“Transportation of goods along Amur with such a weight is not something special,” comments Vladimir Dudin, director of the Amur branch of Polymetal UK JSC . - The barge on which the autoclave is planned to be transported has a carrying capacity of 4900 tons, that is, it will be loaded less than a quarter. In this case, the sediment in the water at this load is only a little more than one meter. Vessels of this type during the navigation period without any problems carry cargo with a much larger total tonnage. In addition, the Amur depth for transporting equipment is more than sufficient.
In order to provide an optimal way of unloading equipment at the destination, it was decided to build a special temporary pier in Amursk, which can technically be adjusted to any water level in Amur, low and high.
Recall that the commissioning of the second autoclave line of the plant is scheduled for the fourth quarter of 2023. AMMC is the first in Russia to begin processing concentrates of twice refractory ores. It is planned to create about 400 new jobs. Phased recruitment will begin in 2021 and 2022. The company intends to maximize the employment of residents of Amursk and the Khabarovsk Territory.
In the first quarter of 2020, Polymetal in the Khabarovsk Territory issued more than 5.1 tons of gold, against 3.7 tons for the same period of the previous year.
https://todaykhv.ru/news/economics-and-business/26703/
Google translate
14-05-2020
Petropavlovsk, an underrated gold miner on the LSE
Petropavlovsk is another undervalued gold miner on the LSE with high growth potential.
Our previous idea for Highland Gold worked well (despite the crisis it showed + 23% in pounds compared to February 14, 2020, when the idea was initiated), we present to your attention another gold miner Petropavlovsk, whom also included in the portfolio
Positive conditions:
* Gold storms hai (including against the backdrop of extensive printing of US money), and taking into account the strengthening of the dollar, conversion to rubles, gold is already 53% (!) More expensive than the last 12 months, for which Petropavlovsk reported (2P 2018-1P 2019)
Operational performance:
The company demonstrates production growth: expectation of 2019 is 450-500 thousand ounces, against 422 thousand ounces in 2018, 440 thousand ounces in 2017.The
company put into operation a modern POX complex, its unit costs should significantly decrease with an increase in processing volumes
Multiplier Underestimation:
* The company costs only 6.8x in EV / LTM EBITDA, while taking into account the current strong gold and dollar in the forecast multiplier, it is 3.9x (for gold miners it is extremely low); given the high leverage, if the forecast multiplier grows to 5.6x (historical level), the growth potential may be 104
Other:
* Petropavlovsk historically has a rather high debt burden and a rather high unit cost, which on the one hand adds risks when it is negative, and on the other, when the market conditions are positive it provides a steep financial and operational leverage for accelerated growth
* Historically, the company's quotes were under pressure due to the existence of a guarantee for an IRC subsidiary overloaded with debt, but the company recently sold it and this problem was solved
Corporate Governance:
* The company is characterized by a rather poor quality of information disclosure; also (probably due to the high debt load and large investments in the construction of the POX complex) historically did not pay dividends, but for example in February 2020 Yuzhuralzoloto bought a large minority stake, also the Prosperity fund among the shareholders is 15%, which on the one hand has some confidence the fact that the company will respect the interests of minority shareholders, on the other hand, it increases the likelihood of a strategic transaction and the possibility of an exit by a premium assessment; The fact that it is traded on the LSE also adds confidence to the corp. management
https://smart-lab.ru/mobile/topic/621415/
Google translate
May 14, 2020 09:01
BCS Global Markets downgrades GDR and stocks of gold mining companies to hold
(repeat)
BCS Global Markets has raised forecast prices for stocks and global depository receipts (GDRs) of gold mining companies analyzed by 6-22%, according to a review of investment bank analysts Kirill Chuiko, Oleg Petropavlovsky and Artem Bagdasaryan.
Meanwhile, the recommendation (rating) for these securities was lowered from “buy” to “hold”, as the rally in gold prices caused by the coronacrisis has lost its fuse at the moment.
As a result, the recommendation to hold is now given to GDR PJSC Polyus (MOEX: PLZL), as well as shares Polymetal (MOEX: POLY), Highland Gold and Petropavlovsk.
Estimates and recommendations of analysts (prices in US dollars):
Predicted price of the Pole - 87.0 (current price - 83.1), recommendation - hold;
Polymetal forecast price (for stocks; prices in pounds sterling) - 16.0 (current price - 14.7), recommendation - hold;
The forecast price of Highland Gold (for stocks; prices in pounds sterling) is 2.8 (current price is 2.5), the recommendation is to hold;
The forecast price of Petropavlovsk (for stocks; prices in pensions) is 29.0 (current price is 26.5), the recommendation is to hold
www.finmarket.ru/shares/analytics/5235832
Polymetal granted loan to kickstart POX second stage
13th May 2020
Russia-based gold and silver miner Polymetal has agreed a ten-year loan of $77-million, with the money being partially used to finance construction of the second stage of the miner’s Amursk pressure oxidation plant (POX-2) in 2020/21. The loan is based on at 5% fixed rate, and is taken with the Far East and Arctic Development Fund....Polymetal CEO Vitaly Nesis says the POX-2 project is important for the entire Far East region. “We are pleased to secure long-term, low-cost financing with a smooth repayment profile.”
https://m.miningweekly.com/article/polymetal-granted-loan-to-kickstart-pox-second-stage-2020-05-13/rep_id:3861
Google translate
May 12, 2020 15:21
MSCI will announce the results of the revision of the MSCI Russia index on the night of May 13, a high probability of exclusion of Transneft "prefs". According to a review by VTB Capital’s chief strategist on the stock market of Ilya Pitersky on April 27, a passive outflow of capital from Transneft preferred shares, if they are excluded from the MSCI Russia index, will be, according to experts, about $ 77 million... At the same time, Pitersky still expects the inclusion of Petropavlovsk shares in the MSCI UK Small Cap index in May (potential passive inflow of about $ 24 million).
www.finmarket.ru/shares/analytics/5234491?nt=0
Google translate
2020/05/14
About 5.4 tons of gold mined in the Amur region for January-April 2020
Amur subsoil users extracted about 5 tons of 400 kilograms of gold in the first 4 months of the year. This is 1% (or 65 kg) more than in January-April 2019, the specialized Nedra DV portal informs.
The bulk of gold (5 tons of 320 kilograms) was obtained in mines. In particular, almost 4 tons of 380 kilograms were produced in total at Malomyr, Pokrovsky and Albyn. About 600 more were mined at the Berezitovy mine. Also, as at Pokrovsky, a significant increase in results was recorded here compared to the same period last year. Another major subsoil user in the region, the Solovievsky mine, received almost 430 kilograms of precious metal from its deposits. Gold mining at this enterprise has increased (compared to others) by a record value of 70%.
http://gtrkamur.ru/news/2020/05/14/35591
www.dprom.online/metalls/krupnejshie-zolotodobyvayushhie-kompanii-slovo-mazhoram/
Article :
24042020
CEO : s of big russian miners meeting
”
At the round table in the framework of Minex, the very same industry leaders gathered. And since the head of the Rosnedr Evgeny Kiselyov set the tone for the conversation, the discussion turned out to be extremely informative. And they started right away with the painful issue of reproduction of the mineral resource base.... ... But with gold, things are no longer so simple: easily-rich reserves are depleted. Work is needed with refractory ores, and it is being conducted in Russia, but not too actively.
“At present, Russia has three sites for the efficient processing of refractory ores: autoclaves of the Amur hydrometallurgical plant and the Bereznyakovsky gold recovery plant, as well as a biological leaching unit at the Olimpiada deposit. It is expected to commission a large autoclave center for refractory ores at the Pokrovsky mine.
Despite the capacities available in Russia, the export of gold in concentrates increased from 5.4 tons in 2013 to 17.3 tons in 2018. The main export destination is China, where the non-environmentally friendly method of oxidative firing is used to extract the metal, ”the Strategy for the development of the precious metals industry in Russia for the period until 2030 says.
“I believe that it is one of the potential directions - it is stimulating deeper processing of our own semi-finished products in the country. It is clear that no immediate changes can be expected, but in the medium term - on the horizon of 5 years - I think this is possible, ”said Vitaliy Nesis.
He called the mentioned Strategy a successful breakdown of the pen and noted that this is a step towards delineating the main direction of development of the industry. The document focuses on the processing of refractory ores and, among other things, on the development of the junior movement.
“The direction has been chosen correctly - internal processing of concentrates. Moreover, Polyus, Petropavlovsk and Polymetal have the appropriate technologies, and if the state announces a clear time frame and conditions for the transition to new business conditions, I think that the major players in the industry, the industry itself and the country as a whole will only benefit ”, - added Mr. Nesis.
Yevgeny Kiselyov patriotically agreed with the need to develop his own capabilities, noting that "we do not need the Chinese, we have the right to protect our market." He also spoke about a significant barrier to deep processing.
“We have problems that can be solved by manual tuning....”
2020/02/28
FIVE TONS OF HARD GOLD: HOW THE POKROVSKY AUTOCLAVE WORKS
” The first year of work - the first stubborn gold in the Amur Region. Pokrovsky Autoclave Plant has mined more than five tons of precious metal. In winter, a company unique to the region came under full load - since December, all four autoclaves have been in operation. The year was the main test not only of an innovative project, but also of people.... All year the close attention of the entire mining industry was riveted to the work of the Pokrovsky AGC of the Petropavlovsk company. The autoclave did not fail: taking into account regular adjustments, the equipment works like a clock. Prestarting vanity in the past, now every specialist in his place, most of the processes entrusted to automation.... An autoclave is a truly revolutionary production, but we do not forget about the other side of the organization of labor. Now that everything is already working, I want to think about comfort, ”the production manager intrigues. - On the lawns you can already see young trees. In warm times, we plant fir trees, birch trees, import black earth, equip lawns, sow grass. This is a real manufacturing need. It’s hard for people to be surrounded by metal every day, they want their eyes to rest.... By the time the Petropavlovsk autoclave complex was being built, it was almost ten years. The company’s deposits have almost exhausted the reserves of so-called light gold, which is extracted using traditional technology. The main reserves are refractory ores. In Soviet times, gold was not mined at such deposits at all - they did not know how. Everything was changed by the autoclave leaching technology, which they began to introduce first at non-ferrous metallurgy enterprises, and then in gold mining. However, a universal technology for the extraction of refractory gold does not exist - at each deposit it has its own.
In 2008, Petropavlovsk established the Hydrometallurgy Research Center, which brought together leading Russian experts in the autoclave topic. In record time, they worked out autoclave technology, verified it in laboratories and on a semi-industrial scale. Its principle is as follows: crushed concentrate is pumped into huge vessels operating under high pressure and temperature (autoclaves), and then oxygen is supplied under high pressure and at a temperature of 230 degrees. Due to this, sulfur is oxidized, and refractory gold is freed.
“An autoclave simulates a process that takes place in nature for many millions of years: when gold enclosed in iron sulfides, when exposed to moisture, sun, heat and other atmospheric phenomena, is released and turns into non-resistant material,” explains Petropavlovsk CEO Pavel Maslovsky . - In an autoclave, it takes 30 minutes.
http://www.ampravda.ru/2020/02/28/094232.html
Interesting, Yuzhuralzolot, the new main share holder of Petropavlovsk invests 250 million US dollars in production of partly refractory ores
1 May 2020
A new GOK will appear in the Chelyabinsk region
The board of directors of Yuzhuralzolot, owned by MP ZSO Konstantin Strukov, approved the construction of a new gold mining and processing complex in the Chelyabinsk Region at the South Kurasan and Western Kurasan deposits. Investments in the creation of a new production will amount to 250 million US dollars, writes Chelyabinsk Today.
The enterprise will be created on the territory of the facility where YuGK, since 2007, has been industrially developing both of the aforementioned deposits and improving methods for refining refractory ores...
https://www.panoramaurfo.ru/v-chelyabinskoj-oblasti-poyavitsya-novyij-gok.html
https://www.mining-journal.com/m-amp-a/opinion/1386699/playing-m-the-russian-way
Playing M&A the Russian way - Mining Journal
Playing M&A the Russian way.
What next for Petropavlovsk, the London-listed gold miner that used to be run by Peter Hambro – a dramatic share price recovery has sparked talk of expansion?...
Anyone got access to full article?
AMUR EXPLORATION BOOM IN PLACER GOLD MINING
Amurnedr Head Nikolai Melnikov - on trends and problems of regional exploration
04/05/2020, 09:00, ECONOMICS
In recent years, the Amur Region has been confidently among the leaders in gold mining in the
country. According to the results of last year, our region is in fifth place with an indicator of 26.3 tons of precious metal. It is with gold that the present and future of Amur geology is connected, because almost 100 percent of private investment goes to the exploration of this noble metal. this industry is strategically important for the economy of the Amur Region. Gold mining occupies a special place here. So, in Amur Region in 2019, 26.3 tons of this precious metal were mined - the volume increased by 3.5 tons. ...the head of Amurnedr Nikolai Melnikov told Amurskaya Pravda about the region’s golden potential, trends and problems of Amur exploration.
Nikolai Vladimirovich, how can you estimate the gold reserves in the Amur Region today?
- The total forecasting potential, which requires further study and evaluation, reaches 2.5 thousand tons. Prospects are primarily associated with the exploration and evaluation of new ore gold deposits of the Petropavlovsk company in the Zeysky and Selemdzhinsky districts. In recent years, the company's geologists have identified promising gold areas near existing mines - Pioneer, Malomyr, Albyn. Previously, their reserves are estimated at more than 120 tons of gold..... The need for finance and staff
- What is the state of the geological service today?
- Traditionally, the main investor in geological exploration is the Petropavlovsk group of companies, annually they invest more than 1.4 billion rubles.... What tendencies in geological exploration in recent years would you note?
- The Amur Region is experiencing a rapid growth in geological exploration for placer gold - against the backdrop of an active manifestation of investor interest in the “declarative” principle of granting the right to use subsoil areas with a low degree of geological knowledge. In 2016, Amunnedra issued 84 licenses for the use of subsoil for geological exploration of subsoil, in 2017 - 76 search licenses. In 2018, the number of licenses issued by the application principle has already reached 189 - an increase of 2.5 times. And over the past, we have issued 317 search licenses for placer gold. This year, more than 200 applications from subsoil users remain under consideration. To be honest, I don’t remember such a huge number of issued licenses in our region. The total increase in alluvial gold reserves in 2019 under search licenses amounted to 623 kilograms... The contribution of the Amur Region to mining is significant. We have such large deposits of native gold as Pioneer, Malomyr, Albyn, Pokrovskoye, Solovyevskoye, Elginskoye, Bamskoye, and Jalindinskaya and Nagima gold placer
www.ampravda.ru/2020/04/05/095030.html
Google translate
[06.05.2020]
Gazprombank
Petropavlovsk
Petropavlovsk throughout 2019 systematically and successfully dealt with major credit risks. Firstly, the company launched an autoclave complex and is now increasing production, demonstrating a high rate of metal extraction from ore. Secondly, the company has begun processing third-party concentrate, from which 61.2 thousand ounces of gold have already been extracted since 2H20 (recovery ratio - 94.9%). Thirdly, the company successfully refinanced its convertible bonds with a maturity in 2020 with a new issue and took advantage of the exception from the covenants to attract an additional $ 25 million needed to finance the construction of a flotation plant at the Pioneer State Mining and Metallurgical Company. According to the latest press release, the plant should be commissioned in 4Q20. After reaching full capacity, it will double the capacity of Petropavlovsk in the processing of refractory ore to 7.2 million tons per year and increase the loading of the autoclave complex with concentrate of its own production. Finally, in March, the company announced it had reached a preliminary agreement to sell its stake in IRC (29.9%) for $ 10 million. Despite the low cost of the package, successful completion of the transaction (the success of its completion will depend on a number of conditions) should lead to release from obligations under the guarantee and the actual reduction of Petropavlovsk debt by $ 160 million, which would significantly ease the company's debt burden.
Rating agencies have already evaluated some of the issuer's achievements: in mid-2019, Fitch upgraded its rating to “B-” with a “positive” outlook, and S&P, confirmed the company's credit rating at “B-”, and improved its outlook to “positive”. Given the rise in gold prices, there is a good chance of a positive rating action, especially if the company is exempted from the IRC debt guarantee - this is one of the factors in the rating review for both agencies.
https://bonds.finam.ru/comments/item/gazprombank-obligacii-rossiiyskoiy-metallurgii-i-gornoiy-dobychi-pozicii-prochny-trudnosti-ne-strashny/
Russian article from March 10 on POG autoclave. Are The numbers the same as in April presentation ?
March 10, 2020, 21:31
Petropavlovsk in 2020 will increase the load of the autoclave by 50-75%
BLAGOVESCHENSK, Mar 10 / PRIME /. Petropavlovsk Plc (Petropavlovsk Plc) in 2020 expects to increase the processing of gold-bearing concentrates of refractory ores at the Pokrovsky Autoclave-Hydrometallurgical Complex (PAGK) in the Amur Region by 50-75%, up to 300-350 thousand tons, the Gold Maker Bulletin (part of MIA Russia today ") in the company.
Petropavlovsk in 2020 expects to increase the processing of gold-bearing concentrates of refractory ores at the Pokrovsky autoclave-hydrometallurgical complex in the Amur Region by 50-75%, up to 300-350 thousand tons, ”the company said.
Refining growth will be achieved due to an increase in the volumes of our own concentrates from the Malomyr and Pioneer deposits, as well as third-party concentrates supplied by manufacturers in Russia and Kazakhstan.
"The volume of production (gold - ed.) Depends on the characteristics of the concentrates processed, including the content of noble metals, sulfur, organic carbon and other components in them," the source said.
For the whole of 2019, Pokrovsky AGC produced 193.2 thousand troy ounces of gold: 132 thousand ounces after processing 155 thousand tons of flotation concentrate from the Malomyr plant, and 61.2 thousand ounces after processing 32.5 thousand tons of flotation concentrates from Russia and Kazakhstan.
Petropavlovsk plans by 2022 to load all four autoclaves of Pokrovsky AGK with its own concentrate in the amount of 350 thousand tons and concentrate of third-party suppliers - 50-100 thousand tons. This will become possible after expanding the capacity of the Malomyr plant (due to the construction of the third flotation line) and the commissioning of two flotation lines at Pioneer. The company also studies technological solutions for the processing of concentrates from promising sources of its own raw materials - refractory ores of Tokursky and other deposits.
Petropavlovsk Plc is one of the top five Russian companies in terms of gold production. The main assets are concentrated in the Amur Region, where four mining and hydrometallurgical plants operate - Pokrovsky mine, Pioneer, Malomyr and Albyn.
www.google.se/amp/s/1prime.ru/amp/industry_and_energy/20200310/831051156.html
Google translate
05/08/2020 // Gold mining in the Amur region increased by 1.2%
May 8, 2020, NEDRADV. Gold mining enterprises in the Amur Region produced 5,411.3 kg of precious metal in January-April this year. This is 1.2% more than for the same period in 2019, NEDRADV was informed in the regional Ministry of Natural Resources.
Of the total volume, 5,321.3 kg was provided by subsoil users involved in ore gold deposits. The remaining 90 kg was recovered in areas of placer precious metal.
Traditionally, the largest gold in the region is mined by the mines of the Petropavlovsk group of companies. Thus, LLC Malomyrsky Rudnik, LLC Pokrovsky Rudnik and LLC Albyn Mine, produced 4,381 kg in four months of the year. In particular, 1,520 kg (-22%) were produced at Malomyr, Pokrovsky mine produced 1 202 kg (+ 27%), and Albynsky - 1,659 kg (1.2%).
Berezitovy mine LLC (part of Nordgold) produced 603.3 kg (+ 8.3%) in four months. Since the beginning of the year, Priisk Solovyevsky JSC has produced another 427 kg (+ 70%).
Suppose it is minus PoX-production. What can we understand from the numbers?
Russian media link:
www.biznes-gazeta.ru/?id=news.view&obj=afe40e961c5cad0c084576a303d5e7bd
Sorry made a mistake while cut/paste analysis, should say year 2020