Petropavlovsk

Website: www.petropavlovsk.net
Primary ticker: LON:POG
Stage of development: Exploration, Development, Production
Primary minerals: Gold
Project to promote: Pressure Oxidation (POX) Hub

Live financials

Petropavlovsk is a major integrated Russian gold producer with JORC Resources of 20.5Moz Au which include Reserves of 8.2Moz Au.
The Company’s key operating mines (Pioneer, Malomir and Albyn) are in the Amur Region in the Russian Far East and the Company has produced a total of c.7.3Moz of gold since operations began in 1994. Petropavlovsk has a strong track record of mine development, expansion and asset optimisation.
The Group recently entered a new era of growth following the successful commissioning and start-up of its flagship asset, the Pressure Oxidation (POX) Hub at Pokrovskiy, which enables the processing of the Company’s abundant refractory reserves and resources.
Petropavlovsk is one of the region’s largest employers and one of the largest contributors to the sustainable development of the local economy.

Management Profile

Alya Samokhvalova – Deputy CEO

Dr Alya Samokhvalova – Deputy Chief Executive Officer and a Member of the Safety, Sustainability and Workforce Committee of the Board of Directors.
Dr Samokhvalova is Head of the Company’s Corporate Office. Dr Samokhvalova joined the Company in 2002.
Dr Samokhvalova is also a Non-Executive Director of the Russo-British Chamber of Commerce and a member of the Global Advisory Board of Cass Business School.
Dr Samokhvalova holds a Masters in Investment Management from Cass Business School, London, and a PhD in Economics from the Moscow International High Business School, a BSc in Accounting and Audit (All Russia Distant Economic and Finance Institute, Moscow) and a BSc in Pharmacy (Alma-Ata State Medical University). She also holds a Professional Accountant Certificate from the Institute of Professional Accountants of Russia.


What is your rationale for attending 121 Mining Investment?

The forum is an exciting opportunity to meet with investment professionals and introduce Petropavlovsk which is undergoing a renewal of interest following the successful launch of our pressure oxidation (POX) facility which is enabling the us to increase gold production as well as lower cash costs and streamline our debt.


What recent news would you like to highlight to investors attending?

FINANCIAL HIGHLIGHTS
The company recently reported a strong set of H1 2019 financial results; revenues increased 13% to US$305m, EBITDA rose 37% to US$83m, while total cash costs (TCC) decreased 6% to US$841/oz. Overall, the results were driven by increased volumes of gold produced / sold and good cost control.
In June 2019, the company successfully announced the redemption of its US$100m convertible bonds maturing 2020 and successful placement of new 5-year US$125m convertible bonds maturing 2024. The issue carries a lower coupon (8.25%) and was significantly oversubscribed.
OPERATIONAL HIGHLIGHT
Our pressure oxidation (POX) Hub, one of only two in Russia, is performing in line with design parameters, making a material contribution to the company’s annual gold production target.


What are your key goals for the next 3, 6 and 12 months?

3 Months:
To deliver on our FY 2019 targets; gold production of 450koz – 500koz at a total cash cost of c.US$750/oz – US$850/oz.

6 Months:
Ongoing ramp-up of our pressure oxidation (POX) hub in combination with the acquisition of competitively priced high-grade third party refractory concentrate.

12 Months:
Successful launch of our flotation plant at Pioneer, which will enable us to provide an increased volume of refractory concentrate for processing at the POX hub. Pioneer flotation plant construction remains on schedule for completion in Q4 2020.


In a sentence, what do you think makes your company such a compelling investment?

1. We are one of the major gold mining companies in Russia
2. We operate highly efficient mining + processing operations
3. We have strategic location and access to developed infrastructure
4. We are growing production via refractory ore processing at the newly launched pressure oxidation (POX) Hub
5. We have strong track record of mine development, expansion + asset optimisation
6. We own exploitable + long life mineral resource base with high expansion potential
7. Our experienced management team + skilled workforce, in-house technical expertise and R&D facilities contribute to the company’s ongoing success