Shares of "Petropavlovsk" fell by 10% due to problems with debt servicing

The company has already missed two payments - in the amount of $ 560 thousand on a loan for a total of $ 200 million and $ 9.5 million on credit lines of subsidiaries for about $ 86,7 million Petropavlovsk POGR₽11.1 -8,34% Buy

Shares of "Petropavlovsk" fell by 10% and reached ₽10.9 per share at auction on April 14 as of 11:55 Moscow time. Quotes fall on news that the company has hired consulting company AlixPartners, as it is experiencing difficulties with debt servicing and gold sales, the company said.

As the Interfax agency notes, problems arose after the inclusion of Gazprombank in the UK sanctions list, which made it difficult for Petropavlovsk to service its debt.

Petropavlovsk POGR ₽11.1 (-8.34%) 1d 1d 1m 3m 1y All time Chart...

The company has already missed two payments - in the amount of $560 thousand on a loan for a total of $200 million and $9.5 million on credit lines of subsidiaries for about $86.7 million. In May, the company has to pay about $12.4 million on Eurobonds maturing in November . The company also noted that under the current circumstances it would be extremely difficult to refinance these bonds.

Among the exit options, the possibility of an early sale of stakes in operating subsidiaries is being studied, the company said.

The gold miner is also looking for other sales opportunities, provided that Gazprombank agrees to this. Under existing obligations, Petropavlovsk is obliged to sell 100% of the gold produced to the bank.

The situation is aggravated by the fact that Russia is discussing responsibility, including criminal responsibility, for the implementation of anti-Russian sanctions on the territory of the country. “If such legislation is passed, the Board of Directors will not be able to guarantee that its subsidiaries will comply with the Regulations in Russia,” Petropavlovsk said in a statement.

Shares of gold miner Petropavlovsk soared 25% Stocks , Petropavlovsk , Moscow Exchange

The company also warned of a possible decrease in free cash flow   , as the Central Bank of the Russian Federation buys gold at prices below the London fixing.

According to the rating of RBC Investments, following the results of last year, the shares of Petropavlovsk were among the ten most unprofitable Russian shares: the market price of the gold miner fell by 38.1%. The company's securities began trading on March 29 after a month-long break and fell by 8% on the first day, but since the resumption of trading, the gold miner's securities have risen in price by 20%.

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Free cash flow. Funds left by a company after all operating expenses have been paid.