Denis Alexandrov, a highly experienced professional in mining and natural resources, has been appointed as the Chief Executive Officer (CEO) as well as a Director of Petropavlovsk PLC (LON: POG). Mr Alexandrov will be taking charge from 1 December 2020. He has succeeded Maxim Meshcheryakov, who was the interim CEO of the Group since August 2020.
The Chairman of Petropavlovsk, James W Cameron Jr, expressing his happiness over the appointment said that he considers Denis as an appropriate nominee for the position as he holds significant experience in the Russian gold mining sector, is capable of understanding the requirements of a listed company and has the ability to take the business to higher levels that would be beneficial for all the stakeholders.
Denis has a wide experience of working in the Russian gold sector. Having an experience of more than 4 years in Highland Gold Mining Limited as the CEO, he is known for delivering operational excellence and superior shareholder returns. He has been the CEO and Director of Auriant Mining AB, a Swedish gold producing company, before working for Highland Gold. Denis has also served at A1 Investment Company and Arlan Investment Company as Managing Director and Chief Financial Officer, respectively.
Denis Alexandrov on his appointment, said:
Source: Company Release, RNS, LSE
Recently, Petropavlovsk PLC had announced the appointment of KPMG LLP to carry out a forensic investigation for the three years to August 2020, into certain transactions that had been undertaken by the company and its subsidiaries, and IRC Ltd and its subsidiaries.
On 10 August 2020 in the Requisitioned General Meeting, the investigation regarding the related party transactions was proposed and approved by 84 per cent of shareholders. After which the formal investigation began immediately.
Recently, the company had published its half-yearly results for the period ending 30 June 2020 along with its 3Q 2020 sales report. The company disclosed an increase in the EBITDA of almost 50 per cent to US$193 million for the first half in comparison with the same period last year (30 June 2019: US$13.2 million). The growth was driven by higher gold prices and increased production.
There was a 42 per cent surge in the total gold produced to 320.6koz (H1 2019: 225.0koz). Of the total production 178.0koz gold were from POX Hub, through the processing of own and third-party refractory gold concentrates. The rise in the production led to the total gold sales to improve by 39 per cent to 312.4koz (H1 2019: 225.0koz)
The Group also reported about the Q3 2020 trading update of IRC Limited in which Petropavlovsk is a major shareholder with 31.1 per cent stake. The Hong-Kong-listed producer and developer of industrial commodities reported a 19 per cent increase in the revenue to US$106.2 million (30 June 2019: US$89.2 million), and it was successful in generating a profit of US$5.9 million (30 June 2019: loss of US$25.2 million). The Cash cost reduced by 4.7 per cent to US$48.8/t (30 June 2019: US$51.2/t).
The company undertook safety measures at all its operational sites and continued to put in place strict quarantine rules. Assuming that no disruption arises further, it has forecasted the following:
- Total Group Production- Between 560koz to 600koz, lower than the previous forecast.
- Gold production- Between 395koz and 415koz
- TCC- Between US$800/oz and US$850/oz
- Capital Expenditure- Between US$90 million to US$100 million