Half-year results for Petropavlovsk (POG) kick off with an 893-word essay from non-executive Sir Roderic Lyne, who returned to head the gold miner after a second boardroom coup in two years. His remarks centre on efforts to complete a pressure oxidation hub, reform corporate leadership, and resolve a burdensome inter-company loan guarantee.
There are two ways to make sense of this lengthy treatise. The first is that after turbulence, investors need direction and reassurance. To this end, Sir Roderic’s tribute is paid to the efforts returning chief executive Pavel Maslovskiy has made to “[restore] the confidence of middle management and the workforce” and “[institute] remediation measures and an operational optimisation programme”.
The second is that the hard numbers that follow make for painful reading. In the six months to June, gold sales dropped 12 per cent, underlying cash profits nearly halved, and all-in sustaining costs leapt from $965 (£736) to $1,138 an ounce. That is just $57 below the current gold price, which remains depressed by a strong dollar, rising US interest rates and an apparent downturn in investor demand.
Analysts expect a full-year loss per share of 1¢, and earnings per share of 2¢ in 2019.
PETROPAVLOVSK (POG) | ||||
ORD PRICE: | 6.6p | MARKET VALUE: | £ 220m | |
TOUCH: | 6.55-6.64p | 12-MONTH HIGH: | 8.8p | LOW: 5.4p |
DIVIDEND YIELD: | NIL | PE RATIO: | N/A | |
NET ASSET VALUE: | 17¢ | NET DEBT: | 99% |
Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
2017 | 304 | 46.8 | 1.0 | nil |
2018 | 270 | -16.2 | -1.0 | nil |
% change | -11 | - | - | - |
Ex-div: | n/a | |||
Payment: | n/a | |||
£1=$1.31 |