Sign In
24 Jun 2021 12:00
24 June 2021
Petropavlovsk PLC
Resolution 19 Interim Report
Petropavlovsk PLC (the "Company") today announces that KPMG LLP has published an Interim Report regarding its forensic investigation into certain transactions undertaken by the Company and its subsidiaries, and IRC Ltd and its subsidiaries, in the three years to August 2020.
The investigation, principally into related party transactions, was proposed at the Requisitioned General Meeting on 10 August 2020 and approved by 84% of shareholders.
A copy of the report is available to shareholders at https://petropavlovskplc.com/investors/resolution19/
The Interim Report has identified a number of potential issues with transactions involving the Company with an estimated value of USD 157 million. These issues include potentially undisclosed related parties and likely conflicts of interest. KPMG intends to focus on these transactions, amongst a number of other potential issues, during its ongoing investigation. As KPMG's work is ongoing, KPMG and the Company are not able to draw or disclose firm conclusions at this stage.
The Company will take the appropriate action at the time of the final findings.
James W Cameron Jr, Chairman, said "As I previously stated in the Annual Report, there appears to have historically been a broad acceptance of individuals personally benefiting from corporate transactions, which was assisted by weak controls and an accepting corporate culture. The board and senior management have already taken action to ensure that these failings cannot be repeated. More rigorous policies and procedures have been implemented, internal audit functions have been strengthened and, starting from the top, we continue to impose a clear culture of zero tolerance for improper business practices."
About Petropavlovsk
Petropavlovsk PLC (LSE: POG. MOEX: POGR) is a major integrated Russian gold producer with JORC Resources of 19.50Moz Au which include Reserves of 7.16Moz Au. Following its IPO on the Alternative Investment Market (AIM) in 2002, Petropavlovsk was promoted to the London Stock Exchange in 2009, where today it is a Premium Listed company and a constituent of the FTSE 250, FTSE 350 and FTSE All Share indices. The Company's shares also trade on the Moscow Exchange and are a constituent of the RTS Index and MOEX Index.
The Company's key operating mines (Pioneer, Malomir and Albyn) and its Pressure Oxidation (POX) Hub at Pokrovskiy, are located in the Amur Region in the Russian Far East. Petropavlovsk has produced a total of c.8.3Moz of gold since operations began in 1994 and has a strong track record of mine development, expansion, and asset optimisation.
Petropavlovsk is one of the region's largest employers and one of the largest contributors to the
sustainable development of the local economy.
For more information
Please visit www.petropavlovskplc.com or contact:
Petropavlovsk PLC Patrick Pittaway / Max Zaltsman / Viktoriya Kim
| +44 (0) 20 7201 8900 TeamIR@petropavlovskplc.com |
Hudson Sandler Charlie Jack / Katerina Parker / Elfie Kent | +44 (0) 20 7796 4133 Petropavlovsk@hudsonsandler.com |
Follow the stocks
