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

cheers GF.

The Capital Group Companies, Inc. below 4%

Disposal

Sale of Non-Strategic, Alluvial Assets

for cash consideration of US$25 million

Petropavlovsk PLC ("the Company" or, together with its subsidiaries, "the Group") announces that it has today signed a share purchase agreement ("SPA") relating to the sale of its entire interest of 76.62% of the issued shares in OJSC Berelekh ("Berelekh"), a company which holds licences to mine and explore alluvial operations, to OJSC Susumanzoloto ("Susumanzoloto") for a total cash consideration of US$25 million.

The transaction is conditional upon (i) the approval of the Federal Antimonopoly Service of Russia and (ii) (a) approval by the shareholders of the Company which is expected to be required under the Listing Rules of the UK Listing Authority ("Resolution") or (b) the provision of a notice by the Company to Susumanzoloto confirming that no Resolution or other regulatory approvals are required for the completion of the sale. A further announcement will be made in due course.

About Berelekh

Total 2012 annual production from Berelekh was 52,500oz, representing 57% of the Group's total alluvial gold production and 7% of the Group's total attributable gold production for 2012. The total cash costs of production at Berelekh in 2012 were US$1,400/oz. During H1 2013, Berelekh produced 13,800oz; its total 2013 gold production is expected to be at a similar level to 2012 production.

Due to the timing of the transaction, it is expected that production from Berelekh during September and October 2013 will be included in the Group's 2013 production therefore the transaction will not have a material effect on the Company's 2013 production target.

All of Berelekh's operations are located in the Magadan region of Russia; it is the only producing asset of the Group located outside of the Amur Region, the Group's core strategic geographic area.

As at 30 June 2013 Berelekh had gross assets of c.US$77 million and net assets of c.US$35 million. Profit before tax for the year ended 31 December 2012 was c.US$6 million. Should this transaction be completed in the year ending 31 December 2013, it is expected to result in an estimated accounting loss on disposal of c.US$15 million to be recognised in the Group's consolidated results for the year ending 31 December 2013. The actual result on disposal may vary depending on the operational results of Berelekh for the period up to the date of completion of the transaction.

As at 1 January 2013, Berelekh held 549Koz of C1 and C2 reserves and resources estimated in accordance with the Russian Classification System. The Group's total mineral resources and ore reserves in accordance with the JORC Code (2004) are unaffected by this transaction.

None of the Group's outstanding hedging arrangements in 2014 relate to production from Berelekh.

Transaction details

The total cash consideration for the sale is US$25 million payable in two tranches. The first payment of US$5 million is payable not later than 10 business days from the date of the SPA with the balance of US$20 million payable within 10 days following the latter of the receipt of the approvals/confirmation referred to above. The consideration will be used to reduce the Group's net debt. Should the transaction not proceed to completion, the first payment of US$5 million is repayable to the purchaser, subject to certain exceptions.

Berelekh is being sold to Susumanzoloto, in which Mr Khristov, who is a director of both Susmanzoloto and Berelekh, holds an aggregate 79.57% interest.

i'm very very glad i got out of these, when the rally took them to about 116

Canaccord outperform TP 190P!

Westhouse Securities Buy 73.00 76.25 130.00 130.00 Retains

JP Morgan Cazenove Underweight 73.00 76.25 70.00 70.00 Reiterates

Gold moved up today so should see POG move up as well, also the MACD, RSI, STOCH seem to have bottomed out on this for now on the daily.

Brokers had a £1.30 - £1.70 target on this today

It's the debt I don't like at POG. Been increasing my physical gold ETF's though.

POG has disappointed for far too long and the market has lost patience ...... there is just about an argument to buy at this level (about 72p), but it is scarcely compelling

StockMarketWire.com
Bank of America Merrill Lynch has cut its recommendation on gold producer Petropavlovsk (LON:POG) to "neutral" (from "buy") after downgrading its gold price assumptions, which leads the broker to believe that the company is at risk of breaching its covenants next year. Analysts have slashed their price objective to 95 pence a share from 280 pence. Interestingly, Liberum Capital also revised its precious metal price assumptions, earlier this week, and downgraded POG to "hold" from "buy" until a solution is found to bridge its funding gap and, similar to BoAML, believes the company is at risk of breaching its covenants in the first half of 2015.

For me the catalyst will be refinancing, only this can change the sentiment.

POGS MACD has just turned positive on the daily chart, and maybe the fixing of the US debt ceiling limit will create a bit of short term upside for POG/Gold as Uncle Sam is at risk of default without this matter being resolved and it has until the 17th of October to do so. Also the Chinese return to the markets next week following the Autumn holiday there.

sp sub 70p

Not looking good for POG with gold falling again, and the billion debt pile doesn't help its cause at present. results out soon too.

Interim Management Statement and Production Update

Highlights

n 204,400oz of gold produced in the period from 1 July 2013 to 30 September 2013 ("Q3 2013") and unit costs within 2013 guidance, despite severe rains and widespread flooding in the Amur region
n Total gold production and sales for the first nine months of the year amounted to 499,100oz and 512,900oz respectively, slightly higher than the corresponding period in 2012
n Exceptional efforts by Petropavlovsk staff and management at all sites limited the effect of flooding on estimated annual production to a reduction of less than 3%
n Average realised gold price of US$1,495/oz during Q3 2013, including US$157/oz benefit due to the successful hedging programme set in place earlier in the year
n Further promising exploration results expected to prolong the life of non-refractory processing facilities at the majority of the Group's mines
n Further development of the POX hub with the lining of the autoclaves on track to be finished by February 2014 at a reduced cost
n Strong performance at IRC Limited ("IRC"), the Group's industrial commodities subsidiary; on course to meet increased production guidance
n Net debt as at 4 October 2013 was US$1.08 billion, a decrease of US$70 million compared to net debt as at 30 June 2013 (US$1.15 billion). This was due to lower than budgeted unit cash costs (on per tonne and per m3 basis) and the previously-announced cost cutting programme; on course to reduce net debt to US$1 billion by year end

Canaccord Genuity Buy 71.75 72.75 190.00 190.00 Reiterates

Numis Buy 71.75 72.75 150.00 - Under Review

Westhouse Securities Buy 71.75 72.75 130.00 130.00 Retains

skin do you get the impression these brokers think the price of gold is going to rise, perhaps they are looking forward to Christmas!

i think they've got a load of stock on their books that they'ld like to pass on to some mug punters

Hey! I'm thinking of increasing my holding. He who dares and all that, perhaps I should change my name to Trigger. ha!ha!
2517

i (almost) agree that this one has fallen far enough, but the company has disappointed the market far too often and it is slow to forgive

if i was buying into mining, i'ld be much more inclined to buy into an ore or even nickel producer as they will reap great benefits as world economies pick up speed