Golden rain poured on Suleiman Kerimov

The businessman got rich for half a day by 300 million dollars on the growth of the shares of the largest gold miner.
21.11.2018
Forbes
Origin source
Senator Suyleman Karimov made a fortune of $ 309 million in half a day. His condition increased to $ 5.7 billion, according to Forbes Real Time.

The growth of the senator's status is associated with the rise in quotations of securities of the gold-mining company Polyus, 82.44% of the shares of which belong to the Kerimov family - they rose from 4322 to 4480 rubles per unit yesterday in the Mosbirge.

Polyus showed fairly good reporting for the first 9 months; it was published in early November. During this period, the company's revenue grew by 15.4% - to 133.1 billion rubles, amid an increase in gold sales by 8.2%, to 1.69 million ounces. "The positive trend in gold prices, which has grown over the past five days, a weak ruble and, of course, the increased likelihood that the new wave of sanctions from the United States is postponed to 2019," the senior analyst said, “The reasons for the growth in Polus shares Aton "Anton Lobazov. According to him, Polyus remains “indecently” a cheap company, although historically it has always been traded with a significant premium, thanks to high-quality, low-cost assets (total production costs of only $ 571 / oz), good growth prospects and large reserves. Today, securities of the company are traded with a consensus indicator of 2019 EV / EBITDA of just 5.2 - the level of gold companies with average capitalization. “We maintain a positive outlook on paper and note an improvement in investor sentiment regarding gold prospects (the consensus price for 2019 is $ 1,270 / ounce),” says Lobazov.

Otkrytie Broker financial analyst Timur Nigmatullin confirms that Polyus has the lowest cost of gold production in the world, while the company consistently pays dividends (in the first half of 2018, the shareholders meeting approved dividends in the amount of 131.11 rubles per share, which corresponds to 30% of EBITDA), and in the next two years, production, according to the company's own forecasts, will increase by a third.

On the eve of the Polyus financial director Mikhail Styskin said that the company plans to increase the free float from the current 17.5% to 30%, ACRA analyst Maxim Khudalov reminds. But to which date the gold miner plans to do this, he did not say. "Apparently, the market just decided to play a proactive: while the papers are cheap enough, they are bought so that when liquidity rises, it is more profitable to sell them," the analyst says. According to Khudalov, in any case, this is positive news for Polyus, since if the company's free float grows, its securities are included in stock market indices, which significantly expands the potential circle of investors who can buy shares.

Polyus is the largest gold producer in Russia, created on the basis of the gold assets of the holding company Interros Vladimir Potanin and Mikhail Prokhorov before the divorce of businessmen, and later passed under the control of the Suleiman Kerimov family. The main fields are located in the Krasnoyarsk Territory, Irkutsk and Magadan regions, as well as the Republic of Sakha (Yakutia). On November 12, the international rating agency S & P Global Ratings upgraded the rating of a Russian gold mining company from BB- to BB with a stable outlook.

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