Polymetal International, owned by Russian entrepreneurs Alexander Nesis, Alexander Mamut, and Czech businessman Pyotr Kelner, is negotiating a sale of Kapan's gold mine- Kapan Mining and Processing Company, to Chaarat Gold company. Both sides have stated this in response to the Bloomberg article.
The Chaarat Gold offshore company (registered in the Italian Virgin Islands) said in August that it would buy a multi-metal mine in the CIS for $ 75 million and the transaction could be completed in early November, and now it has confirmed that it is the mine located in Kapan. There is still no confidence that an agreement will be made, but as soon as it happens, Chaarat Gold will sign a contract as soon as possible, Kommersant reports.
Financial analyst Oleg Petropavlovski noted that Kapan's EBITDA will be $ 17 million in 2018, and the asset value is estimated at $ 100-120 million, or about 3 % of Polymetal's capitalization. He considered the possible deal "not significant".
Kapan includes the existing mine, still untreated Litchkvaz mine and enriching plant. The total reserves are equal to 0.7 million ounces of gold (average content of 4.2 g per 1 ton), resources make 1.9 million ounces (5.9 g per 1 ton). In 2017 gold, copper, silver and zinc concentrate was produced in Kapan equivalent to 50,000 ounces of gold. The development program envisages extraction of 100,000 ounces per year.
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