http://www.kitco.com/charts/livegold.html

cheers GF.

I reckon now is the right time to buy back in. Even allowing for the Russian discount factor, the PE of 10.3 falling to 8.9 is a joke when compared to its' peers . Randgold Resources for instance is on a PE of 91 !!!

Questor share tip: Petropavlovsk shares shine as a golden opportunity
Shares in gold producer Petropavlovsk, formerly Peter Hambro Mining, have been falling sharply of late. However, Questor thinks that the falls look overdone.
By Garry White 7:00AM BST 22 Apr 2011
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Comment
Petropavlovsk
910p +10
Questor says BUY

Yesterday, the company issued a strong first-quarter update. It said that total gold sold during the first quarter was 124,100 ounces, compared with 68,000 ounces in 2010, at an average price of $1,389 (839.73) an ounce. This is an 83pc increase in gold sold at a 27pc higher average sale price compared with the first quarter of last year.

During the first quarter, the total cash costs for producing an ounce of gold were lower than estimated although no figure was provided. A figure of about $630 an ounce has been mooted by analysts. However, African Barrick Gold said yesterday that its cash cost in the first quarter was $658 an ounce, up 28pc year-on-year, so this is an industry-wide problem. The fact that costs were below expectations is good news because investors have been concerned about the issue.

In its recent full-year numbers, the company said that 2010 cash costs had soared by 84pc to $558 an ounce. This was mainly down to lower grades at its Pioneer mine. Rouble inflation has also been a contributing fact in this Russian-focused miner.

However, the first-quarter update showed that progress is being made. Action taken last year should boost production in the current year by almost 20pc to 600,000 ounces. This 2011 production target was reaffirmed yesterday.

The group recently said that its proven and probable ore reserves had increased by 36pc despite the fact it had mined almost half a million ounces in 2010.

The figures for 2010, released at the end of March, were certainly disappointing. Alongside the rising cost issue, the company took a $35m write down on its titanium sponge joint venture after its partner, Chinese state-controlled group Chinalco, decided to withdraw from some of its non-core ventures.

However, 2011 looks set to be much better. The company has spun off its iron ore operations formerly known as Aircom in Hong Kong. The unit, now called IRC, is 65.5pc owned by Petropavlovsk.

The shares hit a record high yesterday, bringing IRC's capitalisation to HK$7.8bn (606m). This means that Petropavlovsk's stake is worth just under 400m, representing about 24pc of the group's current market value.

The earnings multiple for the year to December is 10.3, falling to 8.9. The prospective yield is 1.5pc.

This is a derisory rating for the gold operations, even taking Russian risk, inflationary pressure and development risk for new projects into account. It is interesting to note that the share price of IRC has been rising sharply, while the Petropavlovsk share price has been falling.

There have also been financing concerns for its expansion plans, but Petropavlovsk has agreed new bank facilities of $170m which should ease these concerns.

The shares have been tipped as a buy by Questor as high as 12.62, but gains were derailed by last year's production problems, so the shares are below this level. They were first recommended at 626.2p on July 21, 2009, and they are up 45pc from then, compared with a FTSE 100 index up 34pc.
The shares look undervalued compared with peers, despite some headwinds and the current level is a good entry point. The company needs to focus on costs and production and the share price will recover as the company shows the market it is delivering. Buy.

Is this a golden opportunity to buy now... looking cheap at 760p.

Interesting that Questor were saying 'buy' at 910p (& even at 1262p). Not sure I would be happy buying even at this level. Assuming the market is going to lose ground over the summer, I would not be looking to buy into this until late august. The graph shows no signs of strengthening, imo.

Not much to excite in the mining sector, all seem pretty static...bao going back again after getting excited for 5 minutes. Sounds like a good plan Harry, wait till autumn.

i hold these but rather wish i didn't! ..... now sp has easily crashed through the supposed 900 support, the next support, even from the 5-year chart is not obvious, or at least not to me

Gone long on POG. Director buying and chart looks to have based......

Given the near record high gold prices, the hit taken by much of the gold market looks to me to be rather excassive.

Nice to see stock on loan ie, a proxy for shorters falling away very quickly...................

Director Deals - Petropavlovsk PLC (POG)


Peter Hambro, Chairman, bought 105,000 shares in the company on the 26th May 2011 at a price of 743.89p. The Director now holds 8,672,558 shares.
NOTE: Purchase by him and associates
Story provided by StockMarketWire.com
Director deals data provided by www.directorsholdings.comDirector Deals - Petropavlovsk PLC (POG)

BFN

GF.
Re stock on loan, where does one find this info?

This stock is so cheap its amazing its sunk to just over 8 times 2012 multiples.

Brokers certainly have some high upgrades in mind...

Date Broker name New Price Old price target New price target Broker change

21-Apr-11 HSBC Overweight 910.00p - 1,200.00p New Coverage
25-Mar-11 Citigroup Hold 1,070.00p 1,290.00p 1,100.00p DownGrade
22-Mar-11 Evolution Securities Buy 1,046.00p 1,600.00p - Reiteration
14-Dec-10 UBS Buy 1,151.00p - - Reiteration
07-Dec-10 Arbuthnot Securities Buy 1,165.00p - - Upgrade
24-Nov-10 Bank of America Buy 1,072.00p - 1,700.00p New Coverage

I know that a lot of the Russian market operate on a completely different sent of values, but a P E of 8 is totally ridiculous when compared to say Randgold who are on 71 times !!!!!!!!!!

Goes ex-divi wed 29th Jun '11 (7p)

Excelent news for POG this morning no funding worrys and a update in July. Way undervalued and must be worth at least double the SP today. Ive added big really big.

Certainly to that the discount for operating in Russia has reached ridiculous levels - see post 1123 ( it is probably rather more than that now !)

Indeed indeed CP.

UPDATE 1-Petropavlovsk says Jan-May output ahead of forecast
21 Jun 2011 - 07:40

* On track for 2011 target of 600,000 ounces of gold

* Production for first 5 months totalled 158,900 ounces

* Production ahead of forecast, up 33 pct on year-ago

* Sells 197,700 ounces in first 5 months, up 64 pct


(Adds detail and background)

LONDON, June 21 (Reuters) - Russian miner Petropavlovsk said gold production for the first five months was ahead of forecasts and 33 percent up on the previous year, allowing it to confirm its full-year output target of 600,000 ounces.

In a statement updating the market on plans for a pressure oxidation processing plant at its Pokrovskiy mine, Petropavlovsk said output for April to May from the Pokrovskiy, Pioneer and Malomir mines totalled 83,500 ounces. That took total production for the first five months to 158,900 ounces.

Production in the second half of the year is expected to be higher than in the first six months, it said on Tuesday.

The miner also said it is reviewing its long-term production forecasts for 2012 through 2015 after positive exploration results and said full details would be provided with the group's half-year results in August.

Petropavlovsk said the feasibility study for the Pokrovskiy pressure oxidation plant and two plants at Malomir and Pioneer had been finalised, with final capacity for the Pokrovskiy plant defined at 600,000 tonnes of concentrate per year.

It expects to spend a total of $181 million on the hub in 2011 through 2015.

(Reporting by Clara Ferreira-Marques; Editing by David Holmes)

POG management certainly needs to learn how to manage its pr and to talk straight for a change .... company has an appalling record of falling short of its forecasts and has been deservedly punished

UPDATE 2-Petropavlovsk eases funding worries, shares climb
21 Jun 2011 - 09:57

* Says no need for additional funds to complete capex plans

* New facility processing costs similar to current costs

* Confirms full-year output aim, Jan-May ahead of forecast

* Shares rise 8 percent


(Recasts with shares, quotes, detail)

By Clara Ferreira-Marques

LONDON, June 21 (Reuters) - Russian miner Petropavlovsk will not need to tap the market for funds to complete ambitious growth plans and expects to meet its 2011 production target, it said, sending its battered shares up 4 percent.

In an update on plans for new facilities to process so-called refractory ores, Petropavlovsk on Tuesday denied long-standing speculation it would need a capital increase to fund the expansion and said costs would remain equivalent to those at its other projects.

Fears Petropavlovsk could need to turn to the market and concerns the industry's already rising costs could escalate further have contributed to a drop in the miner's share price, down almost 38 percent so far this year.

"The market has not understood that we have sufficient resources to fulfil our expansion plans," Chairman Peter Hambro told Reuters, excluding a rights issue.

"As we move towards the ability to process the more difficult to treat ores that form the majority of Russian resources, we are having to spend ... but we have the resources to do it and the profit margin ... is extremely good."

Shares in Petropavlosk were up 8.19 percent at 733.5 pence at 0853 GMT, making it the sector's top performer.

"Alleviating funding fears, the company states it has $436 million of available bank facilities and cash and all planned capex is fully funded," Liberum analysts said in a note, adding the market could now "revisit the growth and investment case".

Petropavlovsk said the feasibility study for its Pokrovskiy pressure oxidation plant and flotation plants at Malomir and Pioneer had been finalised, with capacity for the Pokrovskiy plant defined at 600,000 tonnes of concentrate per year.

It said cash costs for the pressure oxidation plant were expected to be similar to current costs for Pioneer and Malomir and has already signed a contract for key equipment. It expects to spend a total of $181 million on the hub in 2011-2015.

Petropavlovsk has met with skepticism from some in the industry who have questioned its ability to process the difficult ores at a commercial price. But the miner says it has engaged experts with long-standing experience in the Russian mining sector, who will present to analysts on Tuesday.


OUTPUT RISING

The miner also said gold production for the first five months was ahead of forecasts and 33 percent up on the previous year at 158,900 ounces, allowing it to confirm its full-year output target of 600,000 ounces.

Petropavlovsk said output for April to May from the Pokrovskiy, Pioneer and Malomir mines totalled 83,500 ounces.

Production in the second half of the year is expected to be higher than in the first six months, it said on Tuesday.

The miner also said it is reviewing its long-term production forecasts for 2012 through 2015 after positive exploration results and said full details would be provided with the group's half-year results in August.

Hambro said earlier this year he expected gold prices to be around $1,500 to $2,000, and he said on Tuesday prices could hit the higher end of that range later this year. Spot gold is currently just above $1,540.

(Reporting by Clara Ferreira-Marques; Editing by David Holmes and Hans-Juergen Peters)

#ADVFN $POG http://t.co/TtfFIm6