27th May 2008 07:00
For immediate release Moscow, May 26, 2008
Polyus Gold' management stance on the offer received from Kazimir Partners
OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer, today announces that, following the decision taken by its Board on 21.05.2008, the company's management has considered the offer recently received from Kazimir Partners to sell 4,766,000 shares of OJSC Polyus Gold at the price of $73.44 per share. The stance of the management on the Kazimir Partner's offer was prepared and sent to the members of the Board.
Particularly, the reasoned stance sent to all the members of the Board of Polyus Gold says the following:
As of January 01, 2008 OJSC Polyus Gold had $1.4 billion in cash and equivalents, the sum sufficient to finance new gold mines construction and development without raising debt from the market, up till the year 2010;
In 2010 Polyus Gold is planning to start mining at two new deposits - Blagodatnoye and Verninskoye - which will boost the gold production, and provided the gold market conditions are favourable, will lead to the growth of the Company's profits;
Placement of excessive cash either on bank deposits or with asset management schemes will not allow to achieve profitability comparable to profitability of investments in gold-linked assets.
- Ends -
Polyus Gold is the largest gold producer in Russia. Headquartered in Moscow, Polyus Gold's operating mines and development/exploration projects are located in five major gold mining regions of Russia - Krasnoyarsk, Irkutsk, Magadan, Amur regions and the Republic of Sakha (Yakutia). The company produced 1.2 m oz of gold in 2007.
For further information please contact
For investors:
Alexey V. Chernushkin, Director, CM and IR
Evguenia V.Buydina, IR manager
+7(495) 641-3377
+7(495) 785-4031
For press:
Victoria V. Vergelskaya, PR Director Elena D. Evstigneeva, Media Relations +7 (495) 641-3365 +7 (495) 544-5496
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