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

cheers GF.

Something afoot - currently +29.3% on strong volume.

Trading Statement

H1 2014 Highlights and FY 2014 Outlook

· 4% increase in total gold production to 306,400oz compared to H1 2013 (294,700oz)
· 5% increase in gold sold to 310,700oz compared to H1 2013 (297,100oz)
· Average realised gold price of US$1,386/oz includes a US$93/oz positive effect from the Group's hedging position
· As at 30 June 2014, the Group had outstanding hedging contracts for 225,400oz of gold at an average price of US$1,326/oz
· The Group reconfirms its total cash cost ("TCC/oz") guidance for FY 2014 of US$900/oz to US$950/oz (2013: US$1,016/oz)
· The decrease in TCC/oz is mainly due to an increase in efficiencies, a decrease in high-cost alluvial production and Rouble devaluation (a RUR/USD exchange rate of 35 in H1 2014 compared to RUR/USD of 31 in H1 2013)
· As at 30 June 2014, the Group's (unaudited) Net Debt stood at c.US$924 million, a c.US$24 million reduction in comparison with the year-end Net Debt as at 31 December 2013 and a c.US$230million reduction in comparison with Net Debt as at 30 June 2013
· The Group's strategic focus is on a further reduction of its Net Debt
· Further encouraging exploration results from non-refractory mineralisation located near the ore processing plants at Pioneer, Malomir and Albyn
· The Group's production in the first half of July is ahead of schedule
· The Group re-iterates its FY 2014 production guidance of 625,000oz of gold

Hambro on gold fix

July 34: Citigroup upgrades to Neutral but TP slashed from 67 to 42p.

Half Yearly Report

Financial highlights

· Record H1 gold production of 306,400oz

· Group revenue of US$453.0 million, down 10% yoy, mainly due to a 12% yoy decrease in the average realised gold sales price partially offset by a 5% yoy increase in gold sold

· Average realised gold sales price of US$1,386/oz (H1 2013: US$1,579/oz), including a US$93/oz positive effect resulting from contracts to forward sell gold

· A c.25% yoy decrease in TCC/oz for our hard-rock mines to US$847/oz (H1 2013: US$1,136/oz) mainly due to:
· An increase in grades processed at Albyn
· An increase in recovery rates at Pokrovskiy, Albyn and Malomir
· An increase in operational efficiencies
· A 13% depreciation of the Rouble against the US Dollar which mitigated Rouble- denominated cost inflation

· A c.16% yoy decrease in central administration expenses (from US$27.1 million in H1 2013 to US$22.9 million in H1 2014), primarily due to cost-cutting measures

· US$104 million net cash from operating activities from continuing operations, up 53% compared to H1 2013 (US$68.1 million), despite a decrease in the average realised gold price and gold production remaining at a similar level to H1 2013. The increase in net cash from operating activities was mostly due to the lower cost of production and a US$37 million reduction in working capital

· A c.41% yoy increase in underlying EBITDA

· A c.58% decrease in capital expenditure on gold projects (from US$168.8 million in H1 2013 to US$70.2 million in H1 2014), in line with the Group's strategic aim to reduce its indebtedness, focusing mainly on:
· Tailing dams and some infrastructure works at Malomir, Albyn and Pioneer
· On-going exploration of prospective areas adjacent to the main mining operations
· Restricting expenditure on the pressure oxidation ("POX") facilities to fulfilling pre-existing contractual obligations and undertaking essential maintenance work

· A c.87% yoy reduction in the total net loss for the Period (from US$742.2 million in H1 2013 to US$95.3 million in H1 2014) mainly due to the 5% increase in gold sold, a significant decrease in TCC/oz and, compared to H1 2013, much lower impairment charges

· A c.3% decrease in net debt (from US$948.4 million at 31 December 2013 to US$924 million at 30 June 2014), in line with the Group's strategy of net debt reduction and balance sheet optimisation

· Forward contracts to sell 225,446oz of gold at an average price of US$1,326/oz were outstanding as at 30 June 2014. Forward contracts to sell 163,134oz of gold at an average price US$1,314/oz were outstanding at the date of this announcement

Operational highlights

· The success of the Group's exploration programme and conversion of Russian reserves and resources into JORC resulted in the following changes to the Group's gold JORC Reserves and Resources statement during the Period:
· An increase of c.1.00Moz in total JORC Mineral Resources (before depletion)
· This includes an increase of c.0.5Moz in non-refractory Mineral Reserves (before depletion)
· These increases are attributable to the Group's core projects in the Amur region

· Promising drill hole results at Malomir's Berezoviy area - c.22g/t at 5m thickness

· In H1 2014, all mines performed in line with the Group's budget

FY 2014 outlook and update on refinancing

· 625,000oz production target for FY 2014 maintained

· FY2014 TCC/oz expected to be at the lower end of the previous guidance of US$900/oz-US$950/oz. This takes into account an expected overall increase in TCC/oz in H2 2014 compared to H1 2014 due to the forecast increase of seasonal, higher-cost, alluvial gold production in the second half of the year

· FY2014 total capital expenditure programme is unchanged and remains at c.US$100 million

· Continued target for net debt at year-end to fall to c.US$850 million, excluding any effects from the implementation of the refinancing plan

· In line with its refinancing plan, the Company has made contact with the majority of the holders of its Convertible Bonds and carried out preliminary consultations which are expected to form the basis of the Group's final proposal in respect of a refinancing, which the Company is currently developing

· The Company has also made significant progress in discussions with its senior lenders on the relaxation of certain covenants in the Group's banking facilities

· Due to the focus on net debt reduction, no interim dividend is being declared

Update on discussions to refinance the Group's 4% Convertible Bonds due 15 February 2015
http://www.moneyam.com/action/news/showArticle?id=4886107

oooops


Gold Update: Petropavlovsk PLC Shareholders Face Dilution To Fund Bond Swap

By Roland Head - Tuesday, 16 September, 2014 | See also: GBSPOGGLD

The price of gold for immediate delivery hit a 2014 low of $1,225 per ounce on Monday, before strengthening slightly to $1,235 per ounce on Tuesday morning, leaving it down by 3.6% over the last week.

As a result, physical gold ETFs have also drifted lower.

The $33bn SPDR Gold Trust (NYSE: GLD.US) ETF has fallen by 2.8% to $118.64 since last Tuesday, cutting its gains for the year to date to just 2.2%. Over the same period, London-listed Gold Bullion Securities (LSE: GBS) has slipped 2.5% to $118.48, leaving the fund’s shares just 2.4% higher than they were at the start of 2014.

Petropavlovsk debt update

Russia-based gold miner Petropavlovsk (LSE: POG) fell 16% to 33p when markets opened this morning. The reason was the firm’s long-awaited update on its refinancing plans — and the news is not good for shareholders.

As I warned at the end of August, the pressing burden of the Petropavlovsk’s $924m net debt means that the firm’s banks are in the driving seat. Petropavlovsk is planning to swap the $300m of convertible bonds due for repayment in February 2015 for new convertible bonds due in 2019.

The severity of the situation is clear; while the outgoing bonds were issued with a coupon (interest rate) of 4%, the new ones will have a coupon of 7.5%, such is the increased risk that bondholders won’t get their money back.

Shareholders may be wiped out

To persuade bondholders to accept this deal, it will include a cash element, which will be raised with a rights issue.

This gives existing shareholders two equally unappealing choices: put more money into a business that’s struggling to survive, or face significant dilution. To underline the severity of the situation for shareholders, one of Petropavlovsk’s main banks has ruled that the firm cannot use any of its existing cash reserves to fund the planned bondholder payment — the money must come from a rights issue (i.e. from shareholders).

What’s happening is simple: shareholders are being milked, diluted, and potentially wiped out, in order to help Petropavlovsk regain control of its debt mountain. This is a completely normal process, as the rights of debt holders always take priority over shareholders’ rights — hence the huge risks involved in buying shares in companies with debt problems.


What next?

Cheap shares aren't always bargains: sometimes, as with Petropavlovsk, they are cheap for a reason.

In auction +23.9%.

POG
sp is now down to 21.5
while there is good reason for this company to be out of favour, as has indeed been the case for the lase 2/3 years, is the risk/reward now in its favour to a considerable degree?

russian "bad temper" apart, the real unknown at this juncture is whether or not the company will manage to get its refinancing package per the rns below .....

Sept 16 (Reuters) – Shares in Russia-focused gold miner Petropavlovsk fell 14 percent in London on Tuesday to 34.0 pence per share after the company said it was considering an equity rights issue amid discussions over repayments of its Eurobonds.

Petropavlovsk is talking with lenders to avoid breaching covenants in its banking facilities at end-2014 and with holders of its $310.5 million bonds due for repayment in February 2015. The company's shares have been volatile this year, reacting sharply on the progress over refinancing.

being a brave chap this morning, i have just bought a little lump at 22.50 on the basis that i can afford to lose the whole stake if disaster strikes

Dr. Pavel Maslovskiy retires as a Senator and is free to re-join the Board of Petropavlovsk PLC

rights issue at 5p announced
at least ordinary shareholders will be able to take up their allotment unlike so often where only the chosen few get to benefit

have you still got your little clump at 22p in Oct, cyners?

'fraid so

Can't decide whether it's throwing good money after bad! Not one of my better investment decisions.

Bad luck to holders here - I dumped in early summer for a big enough loss - what a pig in a poke!

My worst buy ever.

Try this one

http://www.moneyam.com/InvestorsRoom/posts.php?tid=16873#lastread

http://www.amaramining.com