Petropavlovsk
Posted: May 10th, 2018, 7:38 am
A Russian Gold Mining Co.
Kanes Rakishev, a prominent and seemingly well connected, Kazakh entrepreneur has just bought 22% of the business and seems to be agitating for an improvement in performance.
+ A business that has RUB costs and USD revenues appeals to me.
+ New infrastructure seems to be in place which should aid extraction.
+ Mr Rakishev seems to want to consolidate other regional mining operations into POG.
- Mr Rakishev's stake was acquired from Victor Vekselberg who is a Kremlin linked, and recently US sanctioned, Oligarch.
- VTB and ICBC seems to be holders of vast amounts of 8%+ yielding debt. Who'd want to be looking down the barrel of a Russian Bank?
- POG holds 30%ish of a HK listed Iron Ore company "IRC", this is apparently pledged as collateral for existing debts.
- Lots of murky dealings involving political connections, cross shareholdings etc. etc.
- The SP has collapsed from a high of circa 550p (2006) to circa 7p in 2014 and has stayed there ever since........
Opinions gratefully received........
Kanes Rakishev, a prominent and seemingly well connected, Kazakh entrepreneur has just bought 22% of the business and seems to be agitating for an improvement in performance.
+ A business that has RUB costs and USD revenues appeals to me.
+ New infrastructure seems to be in place which should aid extraction.
+ Mr Rakishev seems to want to consolidate other regional mining operations into POG.
- Mr Rakishev's stake was acquired from Victor Vekselberg who is a Kremlin linked, and recently US sanctioned, Oligarch.
- VTB and ICBC seems to be holders of vast amounts of 8%+ yielding debt. Who'd want to be looking down the barrel of a Russian Bank?
- POG holds 30%ish of a HK listed Iron Ore company "IRC", this is apparently pledged as collateral for existing debts.
- Lots of murky dealings involving political connections, cross shareholdings etc. etc.
- The SP has collapsed from a high of circa 550p (2006) to circa 7p in 2014 and has stayed there ever since........
Opinions gratefully received........