Big picture - Why invest in Petropavlovsk PLC
Petropavlovsk PLC Snapshot
Where we operate
The Group has operated in Russia since 1994 and today is a leading Russian gold producer.
The Group’s core assets are located in the Amur region in the Russian Far East, which lies across one of the world’s major belts of mineralisation. The region benefits from good infrastructure and access to hydroelectric power and boasts a strong mining tradition. Petropavlovsk is a leading regional employer and contributor to the development of the region’s local economy.
Our qualified, experienced and motivated staff are central to our success.
We are one of the largest employers in the Amur region, Russian Far East. The majority of our workforce are Russian nationals, and many are local to the region. This has enabled us to draw on local knowledge and experience.
The continued growth and success of the Group depends on our ability to attract, train, develop and retain the best possible workforce.
Our Core Assets
The Group currently operates four hard-rock gold mines which are among the largest gold mines in Russia. Gold is currently processed in on-site resin-in-pulp (RIP) plants and/or heap leach facilities.
Our Exploration Potential
The Group’s exploration programme is focussed on areas close to its mine sites, identifying new targets which could be processed in the Group’s existing facilities. The Group’s Reserves and Resources as of 31 December 2015 stood at 9.21Moz and 25.83Moz respectively.
Our mines were developed within сompetitive time frames in-house using our exploration, engineering and construction expertise. We operate a network of laboratories and design, research and test centres to support exploration and mine development.
Our Way of Working
The Group is committed to upholding the highest environmental standards, as required by Russian legislation.
Pioneer - Overview
Pioneer is one of the largest gold mines in Russia.
Acquired as a greenfield site in 2001, it was subsequently extensively explored and developed by the Group. A small-scale RIP plant was commissioned in 2008 and subsequently expanded in phases using the Group’s in-house expertise.
At present, the capacity of the Pioneer RIP plant is approximately 6.6Mtpa. In addition, the mine operates a seasonal heap-leaching facility.
Between its commissioning by the Group in 2008 and 31 December 2014, the mine has produced approximately 1.9Moz of gold.
As at 31 December 2014, Pioneer had approximately 5.5Moz of Mineral Resources, of which approximately 2.9Moz were Ore Reserves.
The total licence area for the Pioneer project covers 524.8km2 and is still being actively explored. Group geologists consider that many areas within the Pioneer project area have the potential to add to the mine’s reserve base.
Pokrovskiy - Overview
Pokrovskiy is a hard-rock, open-pit gold mine.
The mine was the Group’s first producing asset. It was acquired by Dr Pavel Maslovskiy when it was still at an early stage of exploration and the Group was created in 1994 in order to finance the project’s development. It produced its first gold from its heap-leach facility in 1999 and in 2002 its RIP plant was commissioned. To date, the mine has produced approximately 1.9Moz of gold since commissioning in 1999. Consequently, the Pokrovka-1 deposit is almost depleted. To prolong the mine life, mining has been gradually shifting to satellite deposits.
As at 31 December 2014, total Mineral Resources for the Pokrovskiy project were 1.3Moz, of which 0.39Moz were Ore Reserves.
In order, amongst other factors, to take advantage of the mine’s existing facilities and infrastructure, the Group has plans to convert the mine into a “hub” for the processing of its refractory ores, using pressure oxidation (“POX”) technology. More may be found here.
Malomir - Overview
Malomir is a hard-rock, open-pit gold mine.
Malomir is one of the largest gold mines in Russia in terms of its JORC Reserves and Resources. As at 31 December 2014, Mineral Resources stood at 6.5Moz of which 2.91Moz were Ore Reserves.
The Malomir project area covers 821.3km2 and is still being actively explored. Group geologists have identified areas which have the potential to add to the mine’s reserve base.
The first licence for the Malomir project was acquired by the Group in 2003. Then a greenfield site, Malomir was subsequently explored, developed and built utilising the Group’s in-house expertise.
Malomir has produced approximately 426,000oz of gold since commissioning in mid-2010.
Albyn - Overview
Albyn is the newest of the Group’s mines. The site was acquired in 2005 and subsequently explored developed and built utilising the Group’s in-house expertise. An on-site RIP plant was commissioned in the fourth quarter of 2011 which has since produced approximately 411,000oz of gold between commissioning and 31 December 2014.
The main Albyn licence covers an area of 40km2. However, three additional licences, namely Kharginskoye, Elginskoye and Afanasievskaya, were acquired close, or adjacent to, the Albyn site, and are therefore considered part of the project. These licence areas give the Albyn project a combined total area of more than 1,160km2, of which large parts remain under-explored.
Ian Ashby - Non-Executive Chairman
Mr Ashby has 35 years of international experience in the minerals industry across a range of commodities that include copper, iron ore, coal, silver, gold, lead and zinc. In his most recent executive role between 2006 and 2012, Mr Ashby was President of BHP Billiton’s Iron Ore division, the largest and most profitable business within BHP Billiton, where he was responsible for global strategy development and execution, opportunity identification, project development and operations. Post his executive career, Mr Ashby has pursued Non-Executive Director roles at Genco Shipping and New World Resources. Mr Ashby currently holds NED positions on the board of Nevsun Resources and Alderon Iron Ore Corporation and will join the board of Anglo-American plc as a NED with effect from 25 July 2017.
Bruce M. Buck - Senior Independent Director
Mr Buck has been practicing law in Europe since 1983. His work at the law firm of Skadden, Arps, Slate, Meagher and Flom, where he was a partner and is currently Of Counsel, includes a broad range of mergers, acquisitions and capital markets transactions, including IPOs and high-yield transactions. Mr. Buck has been involved in work in Central and Eastern Europe, and particularly in Russia, since 1990Mr. Buck is also the chairman and a director of Chelsea FC plc.
Dr Pavel Maslovskiy - Chief Executive Officer
One of the cofounders of the Company. Dr Maslovskiy held directorships within the Group including the position of Chief Executive Ofﬁcer from the Group’s inception in 1994 until December 2011, when he relinquished all remunerated positions following his appointment as a Senator Member of the Federation Council (Upper House of the Russian Parliament).
Dr Maslovskiy retired as a Senator Member in October 2014 and was reappointed as Chief Executive Ofﬁcer, in November 2014. Dr Maslovskiy acted as Honorary President during 2012 to November 2014.
Experience: Prior to embarking on his business career, Dr Maslovskiy was a Professor of Metallurgy at the Moscow Aircraft Technology Institute.
External appointments: None.
Committee membership: Dr Maslovskiy is a member of the Executive Committee.
Mr Egorov has been practicing law in Russia since 1998. His practice areas include mergers and acquisitions, dispute resolution, antitrust and antidumping regulations and general corporate work. He also has significant experience working as an in-house counsel at Russian natural resources companies. Mr. Egorov is currently a Deputy M&A and Project Director at Renova Group, the Company’s major shareholder. He was previously a Vice President for Legal Affairs at TNK-BP Management, a senior legal counsel at Altimo and the Head of Antidumping and International Arbitration Practice at UC RUSAL.
Mr Soden has extensive international corporate development experience as a senior executive and board member of various public companies in the natural resources sector. He has worked with the Lundin Group of Companies for the last decade. Mr Soden is currently a Non-Executive Director of Etrion Corporation, Gulf Keystone Petroleum Ltd. and Panoro Energy ASA. Previously, he was Chairman and CEO of RusForest AB, CFO of Etrion and PetroFalcon Corporation and Non-Executive Director of PA Resources AB. Mr Soden holds a BSc honours degree from the London School of Economics and an MBA from Columbia Business School.
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