Petropavlovsk (POG)

Gold miner Petropavlovsk is one share that trades around these rock-bottom levels. Its share price has rocketed 30% over the past three months yet it still trades on a forward earnings multiple of 6.5 times. It’s a reading that provides scope for more meaty price gains given the bright outlook for bullion prices.

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It looks like it was trading 2002-14 then it ended in tears and for six years continued to trade sideways.

What happened at the end of Jan that sparked new interest?

Looks like the past month has been meh.

@Theinvestmentjourney what are your thoughts on this?

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Haven’t looked before. Will take a quick and dirty review


They’re on the right end of the cost curve

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I should have kept my shares :man_facepalming:

Oh well I made some profit. :upside_down_face:

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Recent interview with CEO


@Theinvestmentjourney, my interpretation of your graph is different.
Basically, I think the legend on this graph works like reading some text: From left to right and top to bottom.
Each row is a more “expensive” production cost (higher AISC). So start on the first row and move towards the right, once you finish with a row go onto the next row starting from the left again.

That would men that Petropavlosk is where the big red arrow is, which means its AISC is over 1000 USD pero ounze, which significantly larger than the average:

Therefore I would say that they are on the wrong end of the cost curve. Either way, with rising gold prices (if it continues to rise) it should not be a problem.

P.S. If I happen to have mis-interpreted the graph then please let me know :slight_smile:.

So I played this 22 to 28p and took my profit. I didn’t do much DD but knew it would dip on buy the rumour sell the news.

I couldn’t find really find easily why it’s come back to life at the end of 2019.

Looked like it’s been fun in the decade between 2003-2013 and died for five years after.

I might play it again on the next news update.

What news update?

Nothing that I know about, I’m not DD this atm, too many other plays to focus on.

The swing I did was on the 27th May which was the earnings report.

Suffers from buy the rumour sell the news, here’s the previous two earnings. So I expect it’ll do that again on the next too.

I had them that little purple sliver 5th from left, but you are right after I checked their website.

In a funny way the marginal producers get higher leverage effect from rising gold price than the low cost producers as it has bigger relative effect on Earnings. Having said that I like to be in lower quartile as a rule

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I can’t find it now but I read in a deep dive on proactive investors they were aiming to have AISC at $8-900 but I think the article was 2 or 3 years old. They have a pressure oxidation facility for extracting gold from refractory gold ore whether this is more then competitors have I dont know . They recently got a ratings upgrade too.

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Definitely, it is easier for them to multiply their margins.
But I also agree that low on the cost curve makes more sense long-term, in case the gold price falls again.


What’s going on with this today almost down 12% ? Anyone

Russian oil and gas explorer Petropavlovsk posted a slight drop in full-year profits on Wednesday as a result of increased one-off expenses throughout 2019.
Net profits for the year ended 31 December fell 0.8% to $25.7m despite the group also booking a 48% surge in revenues to $741.6m. Underlying earnings were up 45% to $264.8m.

Petropavlovsk said on Wednesday that revenues were lifted by increased production levels and gold prices, but noted that the fall in profits was a result of higher impairment reversals in 2018, reduced interest capitalisation and an impairment charge against its holdings in IRC.


Thanks for this, not overly concerning then, well not at the moment :grinning:

Lol :joy: 19% drop glad I only had small change in it.

Still good long-term.