Petropavlovsk Securities for today fell by 40% and updated the historical minimum – 2.27 rubles each.
The Russian company Petropavlovsk, one of the top 5 gold miners in the Russian Federation and produces approximately 14 tonnes per year in the Far East, is launching insolvency proceedings. It was reported on its website on Tuesday, July 12th.
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The company announced that the board of directors has decided to apply to the court to appoint Alistair Manson, Trevor Binyon and Joe Rolls of the Opus Business Advisory Group as outside managers.
At the same time, Petropavlovsk applied for withdrawal from trading in London of ordinary shares and convertible Eurobonds that mature in 2024.
According to The Moscow Times, the company, which owns four plants in the Amur Region, was not included in any of the sanctions lists, but Britain’s “registration” blocked international financial transactions for here, and the difficulties in exporting gold put an end to plans to pay off debts.
In March, the London Bullion Market Association (LBMA) excluded Russian refineries from the list of trusted suppliers (Good Delivery). As a result, gold exports to Russia have almost stopped: while taking in almost a ton per day in March and April, Russia was only able to sell abroad more than 100 kg.
In April, Gazprombank requested early repayment of a $ 201 million loan from Petropavlovsk, including interest. The rights of this debt claim were then transferred to the Ural Mining and Metallurgical Company (UMMC), but this did not free the gold miner from early repayment of obligations. Another $ 300 million will have to be paid by the company by issuing Eurobonds in December.
Petropavlovsk’s assets are estimated at $ 1.62 billion and do not cover all liabilities ($ 1.7 billion). The net worth of the company turned negative.
In June, the company postponed its 2021 financial audit and released the results on time, and its shares topped the underdog chart on the Moscow Exchange, down 82% year-to-date and 11x from highest 2020. On Tuesday, Petropavlovsk papers fell another 40% and updated the historical minimum – 2.27 rubles each.
Recall that in May, the Russian economy accelerated the collapse by one and a half times – by 4.3% in annual comparison after falling 2.8% in April.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.