TIDMPOG TIDM75YX
RNS Number : 2511L
Petropavlovsk PLC
12 May 2022
12 May 2022
Petropavlovsk PLC
Update on Debt and Gold Sales
Petropavlovsk PLC ("Petropavlovsk" or the "Company" and,
together with its subsidiaries, the "Group") provides an update on
developments at its operating subsidiaries within the Russian
Federation.
As previously announced:
-- Petropavlovsk received notice from Gazprombank ("GPB")
requiring repayment of, in aggregate, c.US$87.1m (including accrued
interest) due under the Group's Russian subsidiaries' revolving
credit facilities (the "RCFs");
-- it is a condition of the RCFs that GPB acts as offtaker of
100% of the Group's gold production; and
-- As a consequence of GPB's designation under the UK's Russia
(Sanctions) (EU Exit) Regulations 2019, the Group has not repaid
the RCFs or sold gold to GPB.
GPB has issued waivers of its offtaker rights such that
Petropavlovsk has been able to sell gold to third parties, and the
Group has identified new buyers as well as applied for a gold
export licence. However, the Group has also received a notice from
GPB that the bank:
-- may revoke such waivers at any time and may elect not to issue further waivers; and
-- reserves the right to initiate judicial proceedings against
certain Petropavlovsk subsidiaries in Russia for repayment of the
RCFs.
If GPB were to take the action it refers to in its notice,
including initiating judicial proceedings in Russia for the
repayment of the RCFs (for example, by seeking an injunction to
freeze the assets of the Russian subsidiaries, which the Group has
been advised GPB is in a position to do notwithstanding the current
moratorium on bankruptcy proceedings in Russia), it would cause a
material adverse effect on the Group's cash flow position and limit
the Russian subsidiaries' ability to meet obligations to employees
and suppliers.
In light of the above, the Group's four main operating companies
- Pokrovskiy Rudnik JSC, Albynskiy Rudnik LLC, Malomirskiy Rudnik
LLC and TEMI LLC - have applied to the Russian government for a
waiver of the country's current moratorium on bankruptcy filings.
Once in place, the waiver will give the Group additional legal
options to ensure uninterrupted operations and payment of salaries
and other current expenses should there be any legal action by the
subsidiaries' creditors to recover debts owed.
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. 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.8.8Moz 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
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
MSCGRGDUDSBDGDD
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May 12, 2022 03:45 ET (07:45 GMT)
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