Russia's GV Gold plans for 2018 share listing - CEO
VLADIVOSTOK – The CEO of GV Gold is preparing a much-delayed listing of the Russian mid-sized gold producer for as early as next year, he told Reuters on Wednesday.
The privately held firm, whose shareholders include US fund BlackRock, has repeatedly delayed plans after first proposing an initial public share offering in 2007, but listing has come to the top of the agenda since German Pikhoya became CEO in April.
"We are preparing a step-by-step plan to become a public company and are seriously looking at a possibility of share listing in 2018," Pikhoya said.
He added that the company was in preliminary talks with banks but had not yet chosen any to arrange the listing.
The company, which plans to produce 6.5 t to 6.7 t of gold this year, launched its new Taryn gold plant in Russia's far eastern Yakutia region this week and plans to start the Ugakhan plant in Siberia in October.
Pikhoya said that next year, GV Gold, currently Russia's ninth largest gold producer, would continue to increase its output as it intends to become one of the country's top five gold producers in the medium term. That target would include potential acquisitions, he said, but gave no details.
Pikhoya also said that GV Gold's management was preparing a proposal to the board of directors about potential hedging of some of GV Gold's production.
"There are (gold) price levels at which we feel ourselves comfortable and it would do no harm to fix them for a short- or medium-term period," he said.
Pikhoya said that he could propose to the board a gold price level of $1 200 to $1 250 per troy ounce for its 2018 budget planning.
The gold price has risen 16% so far this year to around $1 340 partially due to geopolitical tensions over North Korea.
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