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

cheers GF.

POG From ProactiveInvestors:-

Wednesday, February 04, 2009

Peter Hambro Mining is in rude health.
by Fat Prophets

Safe havens are the must have asset class in todays portfolio and any gold producer able to ramp up production in such environs is sure to find increasing favour. So step forward, PETER HAMBRO MINING .

The Russian focused gold miner has boosted output while gold mine production across the world has receded. According to a recent report from London based metals agency GFMS, the output of the worlds gold mines fell by 4 percent last year.

For those able to continually ramp up production while supply in the market stagnates, good times lie ahead. Here, during 2008 Peter Hambro has delivered. Total attributable gold production jumped by 36 percent on 2007 reaching 393,600 ounces, the upper end of the group's pre stated 2008 production target of 350,000-400,000 ounces.

During 2008, the group realised an average gold sales price of US$845 per ounce which was 26 percent higher than the average price of US$668 achieved in 2007 and in our view this will ratchet up gain in 2009.

Once again, as expected the groups cash cow, the Pokrovskiy mine, was the star performer. Output from the mine from weighed in at 267,100 ounces, a jump of 13 percent compared to 2007 and importantly exceeding the group's production target for the year by 19 percent. Meanwhile at Pioneer, progress continues and once again the group exceeded expectations, yielding 72,900 ounces by the year end (900 ounces higher than the 72,000 ounces targeted).

Furthermore, production was ably supported by the groups alluvial operations. Producing around 22,700 ounces of gold, output here jumped 38 percent when compared with 2007, once again exceeding the target of 19,550 ounces. Whilst the remaining source of Hambros gold, its Joint Ventures, produced mixed results.

As robust a set of production figures these may seem, in our view they are only set to improve.

In 2010, the Malomir deposit is set to underpin production. However more immediately management believe that the group's total attributable gold production for this year will be between 460,000 ounces and 510,000 ounces and given their accuracy to date who are we to argue.

Not only has the company got its house in order financially, the company has also rethinking its strategy. Earlier this month it was announced that the group were interested in previously spun off entity Aricom.

Overall, Peter Hambro is in rude health. Production and exploration are on the climb and management continue to achieve targets with unerring regularity. With Malomir to enter the fray next year, those numbers are only set to get higher. Encouragingly, the group is now included in the prestigious FTSE Gold Mines Index, which comprises the top 18 gold focused mining companies.

However, from a valuation perspective, we see the prospective price earnings ratio of just over 4 times as highly undemanding and at a time when the appeal of keeping money on deposit is waning the shares are supported by a dividend yield of 3.3 percent.

RNS Number : 9070M
Peter Hambro Mining PLC
06 February 2009



6 February 2009




NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN INTO OR FROM THE UNITED STATES OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF ANY SUCH JURISDICTION




Recommended Merger of Peter Hambro Mining and Aricom




Summary




Following yesterday's announcements of a possible Merger of Peter Hambro Mining and Aricom and the successful Placing of 16 million Peter Hambro Mining shares at a price of 450 pence raising approximately US$105 million (before expenses) and today's announcement that Peter Hambro Mining has agreed to purchase a total of US$87 million nominal of the Gold Exchangeable Bonds, the Independent Board Committees are pleased to announce that they have reached agreement on the terms of a recommended Merger of the two companies by which all of the issued share capital of Aricom will be acquired by Peter Hambro Mining.
The Merger will create a mining industry leader in the Far East of Russia with operations in both gold and iron ore with a pro forma combined market capitalisation (including the Placing Shares) of approximately US$1.15 billion.
Following the Merger, the Enlarged Group will be well funded, with a pro forma unaudited cash balance of approximately US$302 million (with US$25 million attributable to Peter Hambro Mining, US$257 million attributable to Aricom and US$15 million attributable to the Placing Proceeds (after deduction of equity placing fees and the consideration to be paid for the acquisition of 48.3 per cent. of Peter Hambro Mining's outstanding Gold Exchangeable Bonds)) as at 31 December 2008, and pro forma unaudited net cash of US$5 million as at such date.
The Merger will enable Peter Hambro Mining to implement its existing strategy of pursuing near term growth of gold production while allowing for the development of Aricom's large iron ore assets once project finance and iron ore markets recover. Peter Hambro Mining will continue to seek to create value for shareholders and, in line with its recent practice, to provide a return to shareholders as appropriate in the form of dividends.
Under the terms of the Merger:
Aricom Shareholders will receive one fully paid New Peter Hambro Mining Share in exchange for 16 fully paid Aricom Shares; and

each Aricom Share is valued at 36.6 pence (using the closing price per Peter Hambro Mining Share on 4 February 2009 of 585 pence); and

each Aricom share is valued at 24.9 pence (using the price per Peter Hambro Mining Share on 8 January 2009 (being the last day prior to the start of the offer period) of 398 pence.

Following completion of the Merger and the Placing:
existing Peter Hambro Mining Shareholders will hold 47.4 per cent. of the Enlarged Group calculated on an undiluted basis;

Aricom Shareholders will hold 43.2 per cent. of the Enlarged Group calculated on an undiluted basis;

the Placees will hold 9.4 per cent. of the Enlarged Group calculated on an undiluted basis;

subject to satisfying eligibility criteria, Peter Hambro Mining intends to make an application to obtain a primary listing on the Official List as soon as possible; and

the Enlarged Group will be led by a team comprising Peter Hambro as Executive Chairman, Pavel Maslovskiy as CEO and Brian Egan as CFO and the non-executive directors are expected to be Sir Rudolph Agnew, Sir Malcolm Field, Lord Guthrie, Peter Hill-Wood and Sir Roderic Lyne.

Peter Hambro Mining is the second largest producer of gold in Russia, with attributable gold production in 2008 of c. 393,000 oz and is one of the lowest cost producers of gold worldwide. Aricom engages in the mining and development of iron ore deposits and the production and trading of iron ore in the Far East of Russia to serve the Russian and Chinese markets.
Peter Hambro Mining has received irrevocable undertakings from each of the Aricom Directors to vote or procure the vote in favour of the resolutions to be proposed at the Scheme Court Meeting and the Aricom EGM in respect of their own beneficial holdings, representing approximately 9.38 per cent. of the existing issued share capital of Aricom. The undertakings given by the Aricom Directors cease to be binding if the Scheme is withdrawn, unless Peter Hambro Mining exercises its right to announce a takeover offer of the entire issued share capital of Aricom, in which case it shall cease to have effect on the withdrawal or lapsing of the takeover offer.
Aricom has received irrevocable undertakings from Pavel Maslovskiy, Peter Hambro, Sir Rudolph Agnew and Peter Hill-Wood to vote or procure the vote in favour of the resolutions to be proposed at the Peter Hambro Mining EGM in respect of their own beneficial holdings (with the exception of any beneficial holdings which are held by Goldman Sachs as nominee pursuant to a stock lending agreement).
Because a number of individuals (including Peter Hambro and Pavel Maslovskiy) are directors and/or shareholders of both companies, Peter Hambro Mining and Aricom have each constituted committees of independent directors for the purposes of the Merger.
It is intended that the Aricom Shares will be acquired by way of a Court sanctioned scheme of arrangement under Part 26 of the Companies Act.
The Merger is conditional upon, among other things, certain Russian regulatory conditions being fulfilled to the reasonable satisfaction of Peter Hambro Mining and Aricom, the passing of resolutions by Peter Hambro Mining Shareholders and Aricom Shareholders and the sanction of the Court.
Peter Hambro Mining and Aricom intend to post the Scheme Document as soon as practicable after the publication of the Aricom 2008 preliminary results and completion of Peter Hambro Mining's annual production forecast update, both of which are expected to be published by early to mid-March.
Sir Rudolph Agnew, Senior Independent Director of Peter Hambro Mining, stated:

'Combining Peter Hambro Mining's near term gold production assets with Aricom's significant available cash resources and iron ore assets will create a mining industry leader in the Far East of Russia. We believe it offers the opportunity for a transaction where the whole is substantially greater than the sum of its parts.'

Sir Malcolm Field, Senior Independent Director of Aricom, stated;

'I am confident this merger will deliver significant benefits from combining the current and prospective gold interests of Peter Hambro Mining with the longer term development of Aricom's valuable iron ore assets. It will enhance the market position of the group creating scale and a platform for growth leading to significant increase in value for shareholders of both companies.'




The summary forms part of and should be read in conjunction with this announcement and Appendices. Appendix I of the announcement sets out the conditions and principal further terms of the Offer. Appendix II of the announcement contains information on sources and bases used in the announcement. Appendix IV of the announcement sets out the holdings of certain Peter Hambro Mining Directors in Peter Hambro Mining Shares before and after the Placing, and the Placing Shares which they have agreed to subscribe. .Certain terms used in the announcement are defined in Appendix V of the announcement.




Investor Contacts: Peter Hambro Mining




Alya Samokhvalova

+44 (0) 20 7201 8900




Investor Contacts: Aricom




Charlie Gordon

+44 (0) 20 7201 8939

GF .... another post that could be reduced to about 2 sentences from 1/2 page!

Lovely start for POG.

+1.62p at 495 mid??????
don't spend the profit all at once!

Bullish TA comment from Pro TA Tipster Zak Mir just out.

Zak Mir

Reged: 28/06/07
Posts: 624
Re: Peter Hambro Mining - POG.L
#439023 - 06/02/09 08:08 AM Edit Reply Quote



Chart wise a retest of the February intraday high so far at 612p is possible while the November support line at 450p holds.

With the way that the world economy is falling apart,the surprise to me is that the price of gold is not already much higher than its current level.

Yep but you have to remember CP that physical buying of gold especially in India during the wedding season as been a bit dissapointing this year.

Having said that the Big boys like MLynch and others see gold going on for $1000 and $1500

Loads err money, well in the near future.

tis but a speck of my profits today.

sticking with it as I see them recovering in a big way.

I put a load in the mlynch Black Rock gold fund some 18 months back,and is still about 25% off its high. They had fallen by some 60%. Of course , they only invest in the gold companies.

To be frank CP I wish they would hit 450p and then the game really is on. We can get on with it.

All this fannying around today as been pointless.

At the back of everybodys minds when they saw that discount placing they were first thinking ohh I wonder if they will be marked down to that level.

Its more or less happened so lets go forward from here.

ORE is still the cheap way in ..... do the calc!

cynic yes this is an interesting situation obviously if the POG sp falls the less number of shares have to be issued to ORE shareholders as it appears to be an agreed deal. Probably expect POG shares to fall and "miraculously" recover after the deal is completed, not very helpful to CFD holders.

is what you say true?
surely the deal is just all shares at 16:1, so the underlying price of POG is not strictly relevant

cynic sorry what we meant is as the POG sp declines so the value of the offer decreases and as you mentioned ealier CFD holders of ORE will lose out as they cannot receive POG shares.

suspect you are wrong, but shall check .... certainly we were paid out with IEC

cynic this is an all share deal not cash. To cheer you up Zak Mir sees a retracement by POG to 612p, if you believe in chartists!

Bought in today @ 465 - has to be a good deal in the longer term...
Shame i didn't have the courage of my convictions - i actually had my finger on the trigger to buy at 180p a couple of months ago, but didn't and told myself off about trying to catch a falling knife!!!

BT, hope it goes well for you.

Halifax, yep your right. Cyners have you cocked up here?.

That would be out of character for you but I agree with Halifax and you say more or less you have been under pressure re., ckn thread.

Hope you are Ok mate.

i don't think so ..... IG checking for me .... at worst, i still have modest profit to bank