image

Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

Latest issue now available

Petropavlovsk

August 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • POG
  • Price:
  • 812p
The explanation for the puzzling weakness in Petropavlovsk's shares may lie in its recent statement on 21 June in which it divulged that seemingly from out of the blue it is now being forced to build a new plant to extract the gold from the refractory ore at its Pioneer and Malomir plants. Presumably, this is because the supply of easier to extract non-refractory ore has now been exhausted.The pressure oxidisation plant will cost an expected US$181m over the next four years and apart from the obvious operational risks of completing the project without a hitch, also means that the cost of extraction will now rise quite significantly. The compensation is that the price of gold has risen to a new high of UX$1600 / oz, on the back of ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Related Articles

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

LIMTED TIME OFFER

SUBSCRIBE TODAY AND SAVE £30 USING OFFER CODE 30OFFTMI

To access our archive of articles and receive current issues you need to subscribe