Petropavlovsk Plc.

Published : May 02nd, 2016

Disposal of Non-Core Assets

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
Keywords :   Debt | Evaluation | Gold Miners | Gold Reserves | Russian | Tax |

Disposal of Non-Core Assets

Disposal of Non-Core Assets

Petropavlovsk PLC ('the Company' or, together with its subsidiaries, 'the Group') announces that its wholly owned subsidiary, Horatio Limited, yesterday signed a share purchase agreement relating to the sale of 100% of the participatory shares in OOO 'Ilyinskoye' ('Ilyinskoye'), a company which holds the mining license for the Visokoe deposit, to AO 'Yuzhuralzoloto Group of Companies' ('Yuzhuralzoloto').

In addition, the Group intends to imminently dispose of its' 49% interest in ZAO 'Verkhnetisskaya Ore Mining Company' ('Verkhnetisskaya') to an entity associated with the Yuzhuralzoloto group and has entered into an agreement linked to that disposal.

The total cash consideration for the transactions is US$ 20 million.

Yuzhuralzoloto is one of the largest Russian gold miners, both in terms of production and reserves and resources. It has a number of operations in the Krasnoyarsk Region, where the Visokoe deposit is located.

The cash consideration for the transactions will be comprised of the following parts:


§ US$7.5 million receivable by 15 May 2016

§ US$9 million receivable as consideration for the assignment of a loan, which Ilyinskoye received from Group companies, to OOO 'Sovrudnik', a company associated with Yuzhuralzoloto, payable in tranches by 30 July 2016. As security for payments due from OOO 'Sovrudnik' under this assignment, it has been agreed that upon the ownership of the participatory shares in Ilyinskoye passing to Yuzhuralzoloto, these participatory shares will be pledged to Horatio Limited until such time as the payments due to the Group under this assignment are performed in full.


§ US $500,000 receivable for Vekhnetisskaya under the share purchase agreement to be entered into by the Group

§ US$3 million receivable as consideration for the assignment of a loan which Verkhnetisskaya received from Group companies, to OOO 'Sovrudnik' payable by 10 June 2016 .

The Group considers these transactions to be commercially linked.

Funds received will be used for general corporate purposes and to reduce the Group's net debt.

About Visokoe

Visokoe is a significant non-refractory gold deposit that is not in production and is located in the Yenisey Ridge area of the Krasnoyarsk region.

The Visokoe site is located c.50km north-west of the village of Teya and c.70km from town of Severo-Yeniseysk. Visokoe contains c.1.2Moz of JORC Probable gold Reserves and c.1.3Moz of Mineral Resources. For a detailed Ore Reserves and Mineral Resources statements please refer to Group's 2015 Annual report. Extensive exploration and test work has indicated ore at Visokoe to be non-refractory and suitable for economic processing in an RIP plant or via heap-leaching. The deposit has a low-strip ratio and is well-suited to open-pit mining.

Gross assets of Ilyinskoye of c. $US19.8 million (as at 31 December 2015) are being transferred as part of the transaction which also contributed c. $US33 million of Loss Before Tax (including US$32.5 million impairment charge referred to below) to the Group's Financial performance in 2015.

A US$32.5 million impairment charge has been recorded against the associated exploration and evaluation assets in the Group's results for the year ended 31 December 2015. No further impairment is expected as a result of this disposal.

About Verkhnetisskaya

Verkhnetisskaya holds two licenses to explore and extract hard-rock gold in the Krasnoyarsk region and both of these deposits are at the exploration stage of development. The Group previously disposed of its 21% interest in Verkhnetisskaya in 2013.

Gross assets of c. $US0.2 million (as at 31 December 2015) related to Verkhnetisskaya are being transferred as part of the transaction which also contributed $USnil of Loss Before Tax to the Group's Financial performance in 2015.

Commenting, Chairman, Peter Hambro said:

'The disposal of these non-core assets falls in line with the Group's revised strategy of debt reduction and focus on our core producing assets. The sale will allow management to dedicate their time and efforts on the most profitable parts of our business portfolio, with the highest margins.'


Petropavlovsk PLC

Alya Samokhvalova

Grace Hanratty

+44 (0) 20 7201 8900


Neil Bennett

James Isola

+44 (0) 20 7379 5151

Read the rest of the article at

Petropavlovsk Plc.

ISIN : GB0031544546
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Petropavlovsk is a gold producing company based in United kingdom.

Petropavlovsk holds various exploration projects in Russia.

Its main assets in production are POKROVSKIY RUDNIK, OMCHAK JOINT VENTURE and PIONEER ( RUSSIA) in Russia and its main exploration properties are MALOMIR and TOKUR in Russia.

Petropavlovsk is listed in United Kingdom. Its market capitalisation is GBX 5.1 billions as of today (US$ 6.0 billions, € 5.3 billions).

Its stock quote reached its highest recent level on December 26, 2008 at GBX 99.98, and its lowest recent point on May 16, 2022 at GBX 1.53.

Petropavlovsk has 3 303 769 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
In the News and Medias of Petropavlovsk Plc.
5/30/2018Petropavlovsk asks UK regulators to investigate activist sha...
Project news of Petropavlovsk Plc.
7/23/2013and Finance: Petropavlovsk cuts more than 700 jobs, Platina ...
6/21/2011(Pokrovskiy Rudnik)Operational and POX update
Corporate news of Petropavlovsk Plc.
7/29/2016Notice of IRC Announcement
7/27/2016Notice of IRC announcement
7/18/2016IRC Announcement
7/2/2016Director Retirement and Board Committee Changes
6/30/2016AGM Resolutions
6/14/2016Update on Transactions
5/31/2016Notice of IRC Announcement
5/13/2016Director/PDMR Shareholding
5/11/2016Voting Rights and Share Capital
5/11/2016Director's Dealings
5/7/2016Additional Listing
5/2/2016Joint Venture
5/2/2016Notice of Publication of Annual Report
5/2/2016Disposal of Non-Core Assets
5/2/2016Agreement to acquire Amur Zoloto
3/24/2015Publication of Offering Circular
3/24/2015Notification of Major Interest in Shares
3/24/2015Price Monitoring Extension
3/24/2015Completion of Refinancing
3/24/2015Director/PDMR Shareholding
3/24/2015Notice of IRC announcement
3/24/2015Satisfaction of Effectiveness Condition
3/24/2015Admission of nil paid rights
3/24/2015Second Price Monitoring Extn
3/24/2015Holding(s) in Company
3/24/2015Results of Rump Placing & Total Voting Rights
3/24/2015Results of Rights Issue
2/26/2015Investors approve Petropavlovsk's restructuring plan
1/13/2015Notification of Major Interest in Shares
1/13/2015Notice of IRC Announcement
1/13/2015Notification of Major Interest in Shares
4/2/2013Hemscott News Alert - Petropavlovsk PLC
2/25/2013Hemscott News Alert - Petropavlovsk PLC
2/1/2013Hemscott News Alert - Petropavlovsk PLC
1/16/2013Hemscott News Alert - Petropavlovsk PLC
12/12/2012Hemscott News Alert - Petropavlovsk PLC
10/16/2012Hemscott News Alert - Petropavlovsk PLC
10/5/2012Hemscott News Alert - Petropavlovsk PLC
9/17/2012Hemscott News Alert - Petropavlovsk PLC
9/5/2012Hemscott News Alert - Petropavlovsk PLC
7/25/2012Hemscott News Alert - Petropavlovsk PLC
6/29/2012Hemscott News Alert - Petropavlovsk PLC
6/14/2012Hemscott News Alert - Petropavlovsk PLC
5/8/2012Hemscott News Alert - Petropavlovsk PLC
4/27/2012Hemscott News Alert - Petropavlovsk PLC
4/12/2012Hemscott News Alert - Petropavlovsk PLC
3/28/2012Hemscott News Alert - Petropavlovsk PLC
3/15/2012Hemscott News Alert - Petropavlovsk PLC
2/22/2012Hemscott News Alert - Petropavlovsk PLC
1/26/2012Hemscott News Alert - Petropavlovsk PLC
1/13/2012Hemscott News Alert - Petropavlovsk PLC
12/20/2011Hemscott News Alert - Petropavlovsk PLC
11/25/2011Hemscott News Alert - Petropavlovsk PLC
9/16/2011Hemscott News Alert - Petropavlovsk PLC
8/23/2011Hemscott News Alert - Petropavlovsk PLC
8/8/2011Hemscott News Alert - Petropavlovsk PLC
5/17/2011Hemscott News Alert - Petropavlovsk PLC
5/4/2011Hemscott News Alert - Petropavlovsk PLC
4/21/2011Hemscott News Alert - Petropavlovsk PLC
3/22/2011Hemscott News Alert - Petropavlovsk PLC
2/18/2011Hemscott News Alert - Petropavlovsk PLC
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
GBX 1.53
05/16 16:22 -0.620
Prev close Open
2.15 2.17
Low High
1.32 2.27
Year l/h YTD var.
1.50 -  18.98 -92.01%
52 week l/h 52 week var.
1.50 -  26.24 -93.92%
Volume 1 month var.
157,830,979 -38.41%
24hGold TrendPower© : -38
Produces Gold
Explores for Gold
Interactive chart Add to compare
Print Compare Export
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 8.07+0.31%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.98-0.50%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.83+0.26%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 0.51+1.59%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.70-3.06%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.04+0.00%Trend Power :
Closes Bridge Loan Financing
CA$ 3.64+1.11%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 10.12+3.05%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.30+1.72%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.16+3.13%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.75+0.57%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 70.46+2.56%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.05+0.00%Trend Power :