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

cheers GF.

RNS Number : 0980J

Petropavlovsk PLC

11 July 2013

The following amendment has been made to the Statement re Share price Movement announcement released on 11 July at 0700 under RNS No 0869J

In the second bullet point corrected figures for the Group's forward sales.

All other details remain unchanged.

The full amended text is shown below.

Petropavlovsk PLC (the Company")

Statement re Share Price Movement

Petropavlovsk notes the recent weakness in the Company's share price and states that it is not aware of any particular recent event that would account for this.

By way of background

-- The Company maintains its guidance of total production for 2013, issued at its AGM on 11 June 2013 of between 760,000 and 780,000 oz.

-- Revenues for 2013 are significantly protected from adverse movements in the gold price due to the Group's forward selling programme. Approximately 146,000 ounces have been delivered into this programme since inception, out of a total of c.495,000 ounces.

-- The Group continues to operate with financial headroom provided by its long-term banking facilities and restates its target of reducing net debt (at the current gold price) to below $1bn by year-end due to its ongoing cost reduction programme.

-- In its Annual Report the Company drew investors' attention to the likelihood of substantial fair value impairments resulting from the fall in the gold price since its year end.

Petropavlovsk will next update investors with its Interim Management Statement on 23 July 2013 and its interim first half results on 29 August 2013.

Enquiries:

Declared short interest ever increasing on Shorttracker.com. Now 5.72%

Harry,
Isn't that positive for the share, given the financial situation of the company?

How so?

The shorts have to be closed sometimes, and they may not get much better prices.

Financial situation is fine, as company reaffirmed today. They did not sell while Gold price was low, but sold part of the 50% at $1660.

increasing demand for real Gold for industrial applications will support the price, less fluctuation. (Also world population is increasing, especially in countries with huge tradition of buying Gold for gift).

What do you think?

Point taken, though atm they are increasing their short positions which would imply further downside to come. I would contest your statement that the financial position is fine as POG are hugely in debt and there have been times in the not too recent past of them possibly defaulting on their banking covenants. Assuming the worst of the recesssion is over and there is less need to hold gold, once POG's forward contracts expire they are probably looking at a gold price which won't cover their mining & refining costs.
I confess I don't know why the POG price has been forced so low and agree that the shorters will move on at some point, but POG is a divi payer, which has at least mitigated the capital loss so far, but for how long? £13 to 78p in three years....I'd be happy if we were back to £13 by 2016!
EDIT: I don't think that the Indian wedding season is POG's target market!

Yes, we don't know break-even Gold price for POG. I think it was $850 a couple of years ago when Oil price was similar levels as now.

I also do not understand why the share price crashed so much. However concerns over bond maturity in 2014 and 2015 exist, most of which are to Russian milliners, Russian banks, and Russian politicians.

EDIT: Their cost is mainly in Rouble which has fallen around 10% since Gold price started to fall.

.

gold being sold in anticipation of rising interest rates, but the shorters may have mis-timed their call.

HARRYCAT I don't think a 2p divi mitigates the sp fall or anything near it.
2517

You're probably right George. Softens the blow ever so slightly. No divi would just twist the knife!

I have some of these via sb and as posted before, I received 7p dividend.

Edited: I received 2p dividend and some shares which worth 5p later in the month.

ahoj - have you actually had the shares, if so when?

I think you would get cash if CFD, but shares will be issued on 28th July, I think.

Ok - I have shares also, so was confused when you said that you had received the shares already.

SP Angel broker note today:
"Total cash costs were $805/oz last year and should come down. $10-$15m of operating and central admin costs were identified when the company updated the market of their business plan.
US$150m of capex had been deferred by year by extending the development of the POX plant.
However, against the tide of sentiment hitting high cost gold producers and a weak gold price investors may not give the company the benefit of the doubt at this stage. Concerns remain that despite moves to protect the balance sheet that the company may still breach its covenants. With potential for write offs the asset side, the balance sheet remains vulnerable. This has now become a recovery stock where the focus will be on absolute cash flow generation to meet interest payments and pay down debt."

Currently (finally!!) up 15.4%.



Canaccord Genuity Buy 80.88 340.00 340.00 Reiterates

Westhouse Securities Buy 80.88 275.00 275.00 Retains

Just when things were on the up.

17 July: POG Canaccord Genuity Buy - TP: 920.00p Reiteration

Skinny, this is different from your post. Which one is right?
Quite a difference!