25th Mar 2019 08:41
LONDON (Alliance News) - Petropavlovsk PLC on Monday said it has been fully repaid two bridge loans made to an investee worth almost USD60 million.
IRC, of which Petropavlovsk holds 31%, last week secured a new USD240 million facility with JSC Gazprombank, with USD57 million of that to be used to repay Russian miner Petropavlovsk's bridge loans made in 2018.
This has now been finalised, and Petropavlovsk Chief Executive Pavel Maslovskiy said: "I am pleased to inform shareholders the company is in receipt of USD57 million, comprising the full repayment of the bridge loans. I would like to take this opportunity to thank all sides involved in bringing the refinancing to a successful conclusion.
We also note the announcement made by IRC on March 21, stating although the anticipated 2018 headline profit has been affected by a non-cash adjustment, the underlying performance of the business improved significantly in 2018, resulting in increases in both IRC's revenue (39% year-on-year) and earnings before interest, tax, depreciation, and amortisation (42% year-on-year)."
"The improvement in the performance of IRC is attributable to the ongoing successful ramp up at the K&S iron ore mine, which, in the second half of February 2019, operated at an average production capacity of 86%, up from an average of 70% achieved during the final quarter and the year 2018," he continued.
Petropavlovsk shares were 0.9% higher on Monday morning at 8.10 pence each.
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