Questor share Tip: production concerns take shine off Petropavlovsk
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Questor says HOLD
Firstly, a delay in receiving equipment digging has developed its year-round production targets is risque.En, many analysts in the city are waiting now that target throughout the year the group is not satisfied.
Friday, the company said that he was "seeking" achieve its objective 636,500-670 000 ounces of gold before goal was already reduced to August of 760 000 – 670 000. Course, delays of equipment are by the course in the development of any mine - and are bound to be hiccups on the road – but it is disappointing after the target was cut in August.
Petropavlovsk produces approximately 140 000 ounces of gold in the third quarter, bringing the total production in the first nine months of 305 000 ounces.It is clear that the lower end of its goal of 670 000 during three months meeting will be a défi.Néanmoins company producer third remains the Russia gold.
Second disappointment of the company refers to the list of Hong Kong of his unit of iron ore, which used to appear as Aircom United Kingdom.Hong Kong listed company will be called IRC.
Last week, IRC was reducing the size of its initial offer of Hong Kong (IPO) of half-$249 m (￡ 156 m) .the demand for shares was not as strong only the company had hoped.
"Hong Kong Retail offer was sursouscrit.La total demand of investors exceeds the minimum requirements of IRC for actions that will be issued by it, but did not meet higher expectations of the company" Petropavlovsk said Friday.
It is planned company now raise 240 m $ and its actions on 20pc below the lower end of the expected range of prix.La society was expected to increase more than 500 m $, but raised amount should always be in advance the
220 m $ Group paid for Aricom when he brought it in the group in February this year.
This means the list, which was scheduled for October 14 will be slightly retardée.Il is now scheduled on 19 October.
Questor was surprised by the lack of institutional - demand because the iron ore company seems to have a solid future.It should be a low-cost producer and is located in the vicinity of the mills beyond China's border with the Russie.Cependant, institutions may have been developed by the fact that IRC is not yet profitable and there has been a raft of competition for money in the end IP offices.
Of course, the problems of production and the delay in the IPOs of the unity of iron ore are décevants.Cependant, the Quaestor still sees a long-term value in actions.Comme said JP Morgan in a note to clients last week: "even if we factor in a complete failure to achieve its growth objectives, multiple of Petropavlovsk would still convincing."
19 Analysts covering actions and monitored by Bloomberg, 12 were buy rating on the shares six hold and one sell .the ' goal average price is ￡ 14.95 a share.
Shares are trading on earnings from December 2010 multiple 13.7, falling to 9.8 just the year prochaine.Il is a substantial reduction from other producers of metal précieux.Les actions have sharply since a month after having been tipped title as a purchase up to ￡ juin.Cependant file, once production begins on foot, the market should be more confident with its prospects and recent falls should be reversed.
Actions were Bonhomme firstly as a purchase on 21 July of the year last p 626.2 and 60pc to a market of 27pc era.
Questor is optimistic about prospects in the long term for the group, but until the production situation becomes more clear actions are now a dock.
