Polyus Zoloto is not in a hurry to purchase assets of an American gold-mining company in Uzbekistan
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AK&M news agency quoted Polyus Zoloto General Director Yevgeny Ivanov as saying last Friday that the company has no plans with regard to acquisition of assets in Uzbekistan.
Kommersant daily reported on April 19 that Norilsk Nickel's subsidiary Polyus could become the first Russian gold-mining company with assets in Uzbekistan. According to the newspaper, Polyus owners intended to buy Newmont Mining interest (50%) in Zeravshan-Newmont joint venture.
Referring to Newmont Mining being at odds with the Uzbek authorities, Kommersant reported the deal already endorsed on the state level.
"Polyus Zoloto has not received any offers from Newmont Mining concerning acquisition of its interest in Zeravshan-Newmont operating on the territory of Uzbekistan," Ivanov said.
"Had the possibility existed in the first place, Polyus management would have considered the matter with care. Bearing in mind the risks, the management would not have advised Polyus Zoloto board of directors to go for it," Ivanov added but refused to elaborate on what the risks were.
In the meantime, Ivanov admits that the company views Uzbekistan as a highly promising region from the standpoint of gold-mining. "We are aware of the risks and costs involved in expansion of Polyus into this new country," Ivanov said. "We haven't received any invitations from Uzbekistan to participate in projects on its territory so far. Had we received them, we'd have taken the offers seriously."
Polyus Zoloto is the leading Russian gold-miner that owns mines in the Krasnoyarsk, Irkutsk, Magadan, and Amur regions. Its evaluated stocks amounted to 18.9 million ounces (by B+C1 standards) and reserves to 04.8 million (by C2+P1 standards) on April 1, 2005.
Output of Polyus Zoloto enterprises went down by 0.8% to 33.5 tons in 2005. According to preliminary estimates, Polyus netted $462 million in 2005 (by MSFO calculations) or 4.5% more than a year before ($442 million). Gross profit went down from $207 million in 2004 to $183 million in 2005 by rough estimates. EBITDA amounted to $182 million.