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Petropavlovsk H1 production shines as board battle rages on
23rd Jul 2020 08:45
(Sharecast News) - Troubled Russian miner Petropavolvsk said total gold production remained on track to meet its full year production target after a 42% rise in second quarter output.
The company, which is in the middle of a civil war between major shareholders and the board, said total gold production rose to 320.6k ounces during the first half, compared with 225.0k a year ago, including 178.0k ounces from the processing of own and third-party refractory gold concentrates
Petropavlovsk said it expected to meet its full-year target of 620k - 720k ounces.
One of Petropavlovsk's leading shareholders last week demanded an independent investigation into the company's dealings with its directors and senior managers in the latest stage of the battle over control of the company.
Everest Alliance, which owns about 5% of Petropavlovsk, wants one of the big four accountancy firms to carry out a forensic examination of transactions and arrangements over the past three years between the FTSE 250 company and current and former directors and senior managers.
Nikolai Lioustiger, a businessman who controls 12% of Petropavlovsk though Everest, wants the inquiry authorised in a special resolution to a general meeting of Petropavlovsk' shareholders. The company's board said it intended to call a meeting without delay.
On 30 June the board accused the company's biggest shareholder UGC of acting in concert with other investors to oust executive and non-executive directors, including Chief Executive Pavel Maslovskiy.
Current chief executive Alya Samokhvalova on Thursday called for a swift resolution to the boardroom battle.
"It is critical in any business to have stability at the board level to ensure business continuity so that, in accordance with the stated wishes of our shareholders, free cash flow generated by the company can be simultaneously used to reward all shareholders in the form of sustainable dividends, as well as to continue the deleveraging of our balance sheet and invest into the future growth of your company," she told investors.
"As such, I hope the current discord among our shareholders and board can be swiftly resolved to enable management to fully focus on delivering value to our shareholders while simultaneously avoiding expensive legal costs."
The company, which is in the middle of a civil war between major shareholders and the board, said total gold production rose to 320.6k ounces during the first half, compared with 225.0k a year ago, including 178.0k ounces from the processing of own and third-party refractory gold concentrates
Petropavlovsk said it expected to meet its full-year target of 620k - 720k ounces.
One of Petropavlovsk's leading shareholders last week demanded an independent investigation into the company's dealings with its directors and senior managers in the latest stage of the battle over control of the company.
Everest Alliance, which owns about 5% of Petropavlovsk, wants one of the big four accountancy firms to carry out a forensic examination of transactions and arrangements over the past three years between the FTSE 250 company and current and former directors and senior managers.
Nikolai Lioustiger, a businessman who controls 12% of Petropavlovsk though Everest, wants the inquiry authorised in a special resolution to a general meeting of Petropavlovsk' shareholders. The company's board said it intended to call a meeting without delay.
On 30 June the board accused the company's biggest shareholder UGC of acting in concert with other investors to oust executive and non-executive directors, including Chief Executive Pavel Maslovskiy.
Current chief executive Alya Samokhvalova on Thursday called for a swift resolution to the boardroom battle.
"It is critical in any business to have stability at the board level to ensure business continuity so that, in accordance with the stated wishes of our shareholders, free cash flow generated by the company can be simultaneously used to reward all shareholders in the form of sustainable dividends, as well as to continue the deleveraging of our balance sheet and invest into the future growth of your company," she told investors.
"As such, I hope the current discord among our shareholders and board can be swiftly resolved to enable management to fully focus on delivering value to our shareholders while simultaneously avoiding expensive legal costs."