TIDMPOG
RNS Number : 5871U
Petropavlovsk PLC
03 December 2021
03 December 2021
Petropavlovsk PLC
Disposal of Stake in IRC
Petropavlovsk PLC ("Petropavlovsk" or the "Company") has today
completed the disposal of its 31.1% stake in IRC Limited ("IRC"),
an iron ore producer with operations in the Russian Far East.
The Company sold a 29.9% stake in IRC to Stocken Board AG
("Stocken") for cash consideration to be paid of US$10 million.
Completion of this transaction follows the satisfaction of
conditions precedent initially set out in an agreement signed by
the Company and Stocken on 18 March 2020, including the irrevocable
release of the Company from all loan guarantees given to
Gazprombank ("GPB") in respect of the facility agreements signed in
December 2018 between IRC subsidiary Kimkano-Sutarsky Mining and
Beneficiation Plant LLC ("K&S") and GPB. As of 30
September 2021, K&S 's total guaranteed debt outstanding to GPB was approximately US$118 million.
Denis Alexandrov, Chief Executive Officer of Petropavlovsk,
said:
"Removal of the K&S loan guarantees has been a strategic
focus for Petropavlovsk for a number of years and we are pleased to
report that we have achieved that goal. This outcome reduces the
Company's financial risks and improves our credit metrics, which
are crucial to our liquidity management efforts in light of the
Company's bonds coming due in 2022."
In addition, on 01 December 2021, the Company closed the sale of
1.2% of IRC to UCP Industrial Holdings Limited ("UCP") for total
consideration of US$2.24m. The sale price was calculated based on
the market price of IRC shares on the Hong Kong Stock Exchange as
of 15 November 2021, less a discount of 10%.
This announcement contains inside information.
About Petropavlovsk
Petropavlovsk PLC (LSE: POG. MOEX: POGR) is a major integrated
Russian gold producer with JORC Resources of 19.50Moz Au which
include Reserves of 7.16Moz Au. Following its IPO on the
Alternative Investment Market (AIM) in 2002, Petropavlovsk was
promoted to the London Stock Exchange in 2009, where today it is a
Premium Listed company and a constituent of the FTSE 250, FTSE 350
and FTSE All Share indices. The Company's shares also trade on the
Moscow Exchange and are a constituent of the RTS Index and MOEX
Index.
The Company's key operating mines (Pioneer, Malomir and Albyn)
and its Pokrovskiy Pressure Oxidation (POX) Hub, are located in the
Amur Region in the Russian Far East. Petropavlovsk has produced a
total of c.8.6Moz of gold since operations began in 1994 and has a
strong track record of mine development, expansion, and asset
optimisation.
Petropavlovsk is one of the region's largest employers and one
of the largest contributors to the sustainable development of the
local economy.
For more information
Please visit www.petropavlovskplc.com or contact:
Petropavlovsk PLC +44 (0) 20 7201 8900
John Mann / Max Zaltsman TeamIR@petropavlovskplc.com
Hudson Sandler +44 (0) 20 7796 4133
Charlie Jack / Elfie Kent Petropavlovsk@hudsonsandler.com
Cautionary note on forward-looking statements
This release may include statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These forward
looking statements include all matters that are not historical
facts. They appear in a number of places throughout this release
and include, but are not limited to, statements regarding the
Group's intentions, beliefs or current expectations concerning,
among other things, the future price of gold, the Group's results
of operations, financial position, liquidity, prospects, growth,
estimation of mineral reserves and resources and strategies, and
exchange rates and the expectations of the industry. By their
nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances [outside the
control of the Group. Forward-looking statements are not guarantees
of future performance and the development of the markets and the
industry in which the Group operates may differ materially from
those described in, or suggested by, any forward- looking
statements contained in this release. In addition, even if the
development of the markets and the industry in which the Group
operates are consistent with the forward looking statements
contained in this release, those developments may not be indicative
of developments in subsequent periods. A number of factors could
cause results and/or developments to differ materially from those
expressed or implied by the forward-looking statements including,
without limitation, general economic and business conditions,
demand, supply and prices for gold and other long-term commodity
price assumptions (and their effect on the timing and feasibility
of future projects and developments), trends in the gold mining
industry and conditions of the international gold markets,
competition, actions and activities of governmental authorities
(including changes in laws, regulations or taxation), currency
fluctuations (including as between the US Dollar and Rouble), the
Group's ability to recover its reserves or develop new reserves,
changes in its business strategy, any litigation, and political and
economic uncertainty. Except as required by applicable law, rule or
regulation (including the Listing and Disclosure Guidance and
Transparency Rules), the Group does not undertake any obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. Past
performance cannot be relied on as a guide to future performance.
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END
MSCUOOBRAVUURAA
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