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

cheers GF.

IRC: Iron Ore Production Target Achieved

Petropavlovsk PLC ("Petropavlovsk" or together with its subsidiaries, "the Group") is pleased to confirm that IRC Limited ("IRC"), a company in which Petropavlovsk holds a majority stake, has announced today that its 2012 iron ore production target of 820,000 tonnes has already been exceeded, with production ongoing. IRC anticipates that it will produce an additional 120,000 to 140,000 tonnes of iron ore before year-end, an approximate 15% increase over the original target. Production of by-product ilmenite continues at expanded capacity following the recent technology upgrade and is expected to be close to guidance of 125,000 tonnes for 2012.

IRC was the Group's Non-Precious Metals Division prior to its listing on the Stock Exchange of Hong Kong Limited (stock code 1029).

The full announcement may be found on IRC's website, http://www.ircgroup.com.hk.

StockMarketWire.com
Petropavlovsk said IRC Ltd, in which it holds a majority stake, had exceeded iron ore production targets at its Kuranakh Mine by 18%, and that its 2013 production targets were significantly higher.

IRC's production targets for 2013 were for 900,000 tonnes of iron ore, up 10% year on year, and 160,000 tonnes for ilmenite, up 28%, Petropavlovsk said in a trading statement.

It further said that the K&S Project construction and operations were on track.

StockMarketWire.com
Petropavlovsk hiked its 2013 gold production target after achieving a 13% rise in output in 2012, also announcing its stake in IRC may be reduced to 40% as other investors weigh in.

The company said full-year gold production rose about 13% to 710,400 oz, which was ahead of guidance. It said its 2013 production target was between 740,000 oz and 780,000 oz.

It said the average realised gold sales price rose by about 3% to $1,670/oz in 2012.

Petropavlovsk said it experienced strong operating cash flowing during the second half of 2012.

Early estimates indicated net operating cash flow rose about five times, against the first half, to about $230 million.

Petropvalovsk also announced a potential $238 million investment in its former subsidiary IRC by new shareholders to support production growth, which would reduce its stake to about 40%. The new shareholders would own about 36%, the company said.

IRC was previously a wholly-owned unit of Petropavlovsk, but was spun off in an initial public offering on the Hong Kong stock exchange in 2010.

"A pro-rata indemnity on the existing guarantee with the Industrial and Commercial Bank of China, reducing the Company's exposure under the guarantee, will be implemented on full completion of all stages of the investment, which is expected to be in Q3 2013," Petropavlovsk said in a statement.

Meantime, Petropavlovsk's net debt position, excluding IRC, was about $1.1 billion. The net debt position of IRC changed from about $68 million at June 30, 2012, to about $110 million at Dec. 31.

At Jan. 1, 2012, the group had about $153 million worth of committed, but undrawn, debt facilities.

StockMarketWire.com
Citigroup cuts Petropavlovsk to netural from buy, target 377p from 501p

Notice of Hedging Agreements
Petropavlovsk PLC ("the Company" or, together with its subsidiaries, the "Group") announces that the Group has entered into financing contracts to sell a total of 399,000 ounces of gold over a period of 14 months ending in March 2014 at an average price of US$1,663 per ounce. This represents 46% to 47% of the Group's forecast production for the period and guarantees a minimum revenue stream of c. US$ 664 million.

These financing arrangements increase the certainty of a significant proportion of the Group's cash flow whilst the Group continues its capital investment in its Pressure Oxidation Project and the further development of its mining and processing operations at Malomir and Albyn. It does not reflect the Company's view of the likely future course of the US$ gold price.

StockMarketWire.com
JP Morgan Cazenove has restated its "overweight" recommendation on Petropavlovsk (LON:POG) after the company announced that it had hedged a significant proportion of its future gold production. The City broker reduced its price target slightly to 500 pence from 525 pence. "Petropavlovsk"s announcement that it is has hedged almost half its gold output over the next 14 months should, in our view, be seen as a positive for the shares, analyst Roger Bell said in a note to clients. Not only is the average hedge price of $1,663/oz already in the money, it also protects cashflow at a critical juncture for investment in the POX plant and reduces the price at which POG would theoretically breach debt covenants by ~10% to <$1,350/oz. While risks around the growth strategy remain high, we continue to see POG as a potentially high return story and maintain our overweight, albeit with a slightly lowered Dec 13E price target of 500p (525p).

G/F or anyone else who looks at it, How do you find the info on that Kitco.com message board, Any good?

how come these are droping like a lead balloon

Won't be the price of Gold as that's up a bit this morning.

This won't have helped.

Nomura Reduce 256.40 274.50 760.00 240.00 Reiterates

Can t fall any further?

Most of the gold mining companies, and most mining companies in general, have for a long while been a complete disaster to hold.
Even good news with many of them produces a fresh wave of selling.
Has anybody any idea when this sector will turn round ?

Gold is Dollar price related so will depend on that, obviously if there is some world conflict related news then that might change the price as well.. All ifs and buts as usual CP -):

I think money is expected to move from Gold to shares.

HARRYCUT, do you still hold?

Yes, unfortunately!
Mining sector is out of favour atm, so will sit tight on this until it starts to recover and may then average down.

It's already done that since Oct last year Ahoj. Next move? probably depends on the Dollar strength IMHO.

Don't forget POG is Iron Ore & Gold, so some of their profit is dependent on the chinese taking ore. Not sure on the %age break between gold and Iron ore but will try & do some research.

CORRECTION: Iron Ore production is now listed under a seperate company IRC Ltd out of Hong Kong.

Yes, Given $ strength, the percentage fall has not been much.

I think if the price falls more than 5% for a sales contract, the contract can collapse - penalty will be paid but it is not god for POG.

SELL POG at all costs... dump

Nomura note today:
"Petropavlovsk (Reduce, 240p)
End of the line at Pioneer? POX hub delivery in focus. Downgrading to Reduce Petropavlovsk’s operating base has been undergoing rapid change over the past few years. The lack of exploration success in the non-refractory ore category has led to the future of the operations to now be based around the new POX hub (located at its Pokrovskiy mine). The POX hub is expected to commission in 1Q 2014 and accounts for 60% of our two-year forward NPV estimate.
POX (pressure oxidization) is a complex gold processing method with sensitive autoclaves that can be difficult to operate. Although a proven technology, we have concerns around the potential for capex overruns and delays to commissioning as has occurred at Polymetal’s Amursk facility. This risk is enhanced in terms of share price impact owing to POG’s need to maintain cash flow with its high net debt position We understand that Petropavlovsk, alongside Outotec and leading outside consultants, has done everything to mitigate this risk; however, we think that 2013 is likely to provide limited potential for material outperformance for the shares prior to the delivery of this critical project for the group (in absence of a gold price rally).
We had previously been more positive on Petropavlovsk’s potential, owing both to our expectations of higher gold prices, and from the potential to reshape the investment case via additional exploration success (particularly in terms of non-refractory gold at Pioneer). The most recent update was disappointing in our view as no material nonrefractory resource has been added. Although there still remains exploration upside, there is a lower likelihood of higher grades being available at Pioneer through 2014 with the high rates of stripping impinging on ore availability. This could have important knockon implications for Petropavlovsk’s earnings and cash flows through 2014. We view consensus earnings as too high and on the following page we lay out why we can see another downgrade of expectations at POG.
Negatives
• 2013 consensus EPS could be too high owing to stockpile adjustments – As our numbers are below consensus even after allowing for our lower gold price forecast, we would expect that market cash cost estimates might be too low; until full company guidance is given. Pioneer is expected to process a large portion of lower grade stockpiles through 2013, and this stockpile adjustment may not be as yet flowing through, in estimates (POG does not break this number out in its financials).
• High grade non-refractory material availability is declining – the transition to refractory material has less insulation than previously because of the lack of exploration results.
• POX hub to be delivered over 2013 – Prior to tangible news flow on the POX hub, there is limited potential for Petropavlovsk to outperform, in our view.
• Signal from the hedge is a negative – In our view, there is rationale for Petropavlovsk to hedge its exposure to the gold price owing to its highly levered financial position and high capex spend through 2013. However, in advance of the updated financials, it is difficult to determine whether this has been done as a prudent cash management technique or is perhaps required because of more modest prospects. In general, investors tend to prefer gold companies with full unhedged exposure and, at the least, there is less relative upside to 2013 numbers should gold rally.
• High debt, high cost position – In a falling gold price environment POG stands out with its net debt position and ranks second in cash costs behind African Barrick Gold in the European space.
• Russian exposure has enhanced perceptions risk when gold equities in general offer more opportunities and during a falling gold price environment."