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Petropavlovsk PLC  -  POG   

IRC Q1 Trading Update

Released 10:27 11-Apr-2013

RNS Number : 1178C
Petropavlovsk PLC
11 April 2013

11 April 2013


IRC Q1 2013 Trading Update


Petropavlovsk PLC (the "Company") is pleased to confirm that IRC Limited ("IRC"), has today announced its Q1 2013 Trading Update.


Key Highlights:

the completion of the subscription by General Nice Development Limited ("General Nice") of 817,536,000 new IRC shares at a subscription price of HK$0.94 per IRC share;

Increased production and sales at Kuranakh, resulting in a record-breaking quarter;

On-going implementation of cost-saving measures and efficiency gains at Kuranakh and across the Group; and

2013 full-year production targets re-affirmed.

Completion of Stage one of the US$238 million investment in IRC by new shareholders

The completion of the subscription by General Nice of 817,536,000 new IRC shares is in accordance with Stage 1 of the potential US$238 million investment in IRC by new shareholders, the details of which have been previously announced by the Company and IRC on 17 January 2013. The Subscription accounts for approximately 18.96% of IRC's issued share capital. Petropavlovsk remains IRC's largest shareholder, holding 51.16% of IRC's issued share capital.

Stage 2 of the US$238 million investment is the subscription by General Nice and Minmetals Cheerglory Limited ("Minmetals Cheerglory") (together the "Investors"), exercisable at the option of General Nice, of up to an additional 1,110,900,000 new IRC shares at a subscription price of HK$0.94 per IRC share, for a total consideration of US$134.7 million. This is expected to be completed by the end of the third quarter 2013, as planned.

If both stages of the transaction are fully implemented, provided no additional IRC shares are issued, the Investors will hold c.36% of IRC's issued shares with the Company holding c.40%.

The transaction proceeds will be used towards the development of the K&S Project including the Phase 2 expansion and to advance the development of the Garinskoye Project.

About IRC

Petropavlovsk PLC holds a majority stake in IRC Limited ("IRC"), the Group's former Non-Precious Metals Division prior to its listing on the Stock Exchange of Hong Kong Limited.  

The full announcement may be found on IRC's website,

About General Nice

General Nice is a member of a group of companies which, collectively, is one of the largest private Chinese iron ore importers.  

About Minmetals Cheerglory

Minmetals Cheerglory, a company incorporated in Hong Kong, is a wholly-owned subsidiary of China  Minmetals Corporation, which is China's largest state-owned international metals and mining company.



Petropavlovsk PLC

+44 (0) 20 7201 8900

Alya Samokhvalova

Rachel Tuft

College Hill

+44 (0) 20 7457 2020

David Simonson

Matthew Tyler

Anca Spiridon




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IRC Q1 Trading Update - RNS