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

cheers GF.

It appears that India, Turkey, and China are buying Gold big way. Is Goldman right????

Apparently paper gold is being sold, but the demand for real gold is growing!!

Turkey:
http://gulftoday.ae/portal/f90d460a-0cf4-45b4-acab-f2746009460f.aspx?

Evy Hambro was on Bloomberg this morning: he didn't talk much about Gold (mostly China, Africa, Iron and Copper).

However he did mention that the recent fall in the price of Gold was down to paper selling ('as near as we can tell'), that this paper selling added nothing to the supply side, that bullion dealers could not keep up with the demand for physical at the current price and that there is a 'massive short position on the Comex'...

Update on Business Plan


Petropavlovsk PLC ("Petropavlovsk" or the "Company", or together with its subsidiaries, "the Group") announces that following the recommendations of its Operating and Executive Committees, the Company's Board of Directors has approved adjustments to the Company's business plan in response to the recent volatility in the gold price. The aim of these adjustments is to reduce the level of the Company's net debt and improve the Company's cash flows.

The Company also announces that Mr. Dmitry Chekashkin has been appointed as Chief Operating Officer and an Executive Director of the Company by the Board on 10 May 2013.

Highlights

n Total estimated cash savings of US$160 million being made in 2013 in order to strengthen the financial position of the Group;
n Extending the development period of the pressure oxidation ("POX") Hub and the related flotation plant at Malomir by 12 to 18 months, thereby deferring US$150 million in capital expenditure which would have been incurred in 2013;
n A comprehensive cost-cutting programme has been implemented to reduce annual operating and central administration costs by approximately US$10-15 million;
n The Group reiterates its 2013 gold production forecast of 760,000-780,000oz;
n Gold production in 2014 is expected to be in line with 2013 levels, unchanged from previous guidance despite the extension of the POX Hub development period, due to recent exploration successes, particularly:
- at Malomir, where new non-refractory resources are expected to sustain current levels of production in 2014;
- at Pioneer, where the Group received positive indications of the existence of further high-grade ore bodies; and
- at Albyn, where there are significant historical resources at the newly-acquired Uglichikanskaya deposit (located 15km from the Albyn RIP plant).
n 2013 exploration will focus on upgrading oxide resources into reserves for fast-tracking into the 2014 and 2015 production plans;
n These positive exploration results are expected to also benefit the Group's production in 2015 and beyond;
n The Company will continue to explore further measures to strengthen the financial position of the Group.

Corporate Update

n The Group is pleased to announce the appointment of Mr. Dmitry Chekashkin as Chief Operating Officer and an Executive Director of the Company with immediate effect;
n Prior to his appointment to the Board, Mr Chekashkin was Group Head of Precious Metals and sat on the Executive Committee. Mr Chekashkin is a qualified engineer and worked as Deputy General Director of Finance for two leading gold mining enterprises in the Russian Far East before joining the Group in 2003.

Canaccord Genuity Buy 147.30 510.00 510.00 Retains

Numis Buy 147.30 290.00 300.00 Reiterates

Westhouse Securities Buy 147.30 250.00 285.00 Retains

JP Morgan Cazenove Overweight 147.30 420.00 320.00 Reiterates

except that gold is still on a heavy downward trend

cynic for how long?

i'll check the downside target later, though how long that might take is anyone's guess ..... personally, i never trade commodities

===============

the man from del monte, he say $1275-1292

The thing that gets me about this stock and many others in the mining sector , is that we are getting so many buy recommendations even though the stocks are continuing to fall !!

I think that most broker recommendations are based on forward projections with an indeterminate time scale, but are not really intended for short term trading. Even though the sp is currently down, I assume that they are tipping POG as a good investment over the medium term.

I guess so, but it really is misleading, especially when they have already fallen so much. It should be one hell of a rebound when it finally does come .

SocGen comment today:
"In our 11 April 2013 downgrade of gold equities Link: Gold stocks downgraded, we slashed our TP for POG by 40%, but we did not downgrade the share based on our positive view of the POX project and some restructuring in January which reduced the potential liability related to its iron ore subsidiary, IRC. As it turns out, even that 40% cut was insufficient as the gold price crashed just a week later, and as a highly leveraged producer, Petropavlosk’s share price plummeted from 197p on April 11 to 134p with it. With the near term risk to the gold price now to the downside, we are downgrading Petropavlovsk from Buy to Sell with a new price target 110p (previously 275p).
One thing seems clear. With sentiment turning negative on the gold price, POG looks to be one of the stocks most exposed as a high cost producer with heavy debt. We reaffirm our view that the POX project meets key hurdles, as we detail in these pages with a global benchmarking exercise for 12 POX mines and projects. We still believe the project is a positive catalyst for the group, but it is a catalyst that has again been deferred. The plant was initially planned for early 2013, then pushed back into H2, and a week ago it was deferred again until 2015. This in itself may not justify our downgrade, but there are other headwinds. Assuming spot ($1,375) for the balance of the year, the average gold price for 2013 would be $1,434/oz. On that basis after accounting for the hedge contracts and the $150m capex deferral, net debt would decline by only c.$80m – less than one year’s interest payment. So while we see little risk of a breach in debt covenants, this looks like running to stand still. Finally, with near term downside risk to the gold price, earnings downgrades and further restructuring/delays to POX cannot be ruled out.
We calculate our TP using an adjusted NPV to our core valuation, which is itself based on life-of-mine reserves/resources. For Petropavlovsk we still calculate an adjusted NPV of 250p/sh. Based on the historical P/NPV trading range (0.5x to 0.8x) we now apply a P/NPV multiple of 0.45x (previously 1.1x) for our TP of 110p and TSR of -10.6%, which includes a 12m forecast dividend of 7p."

Good work Harry.
How are you keeping these days ?

you'll have skinny crying harry.,.

None of the brokers seem to have a clue with this one! If I wasn't already in, I certainly wouldn't be buying, but as I am, it's just a case now of trying to average down, hopefully when the sp is trending up.
I think skinny is already crying over his new Windows 8! Don't suppose POG will upset him too much in the short term, but they need to pull their digit out and at least offer us a decent divi to offset the naff sp.
How am I keeping? As I don't spreadbet, all my efforts go into chosing stocks for ISA & dealing. The ISA is fine, with less risky stocks and decent yields. The dealing account is getting through far too many red ink cartridges for my liking!

My bum trade of the year (so far) - hey ho!

Petropavlovsk PLC ("the Company" or, together with its subsidiaries, the "Group") announces that the Group has entered into hedging arrangements to sell 96,000 ounces of gold over a period of three months ending in June 2014 at an average price of US$1,408 per ounce. This represents approximately 55% of the Group's forecast production for the period.



These arrangements are in response to the volatility in the gold price, which the Company will continue to monitor, and are in addition to the hedging announced on 15 February 2013. These arrangements do not reflect the Company's view of the likely future course of the US$ gold price

Gold prices are up some 40 bucks over the last couple of days. Not that you'd notice with POG !!

Skinny, could you post the gold chart you've posted
on the Greystone Traders' thread here, please. Chessplayer
makes a good point.

AGM 11th June might be interesting.