Gold-mining Chaarat Gold announced the appointment of Artyom Volynets as general director of the company, since March he has been on its board of directors. In addition, Chaarat Gold will join the management company Volynets - ACG Amur Capital Group, which was founded in 2014 to consolidate the gold mining sector in the CIS. "All ACG projects in the gold mining sector will be officially transferred to Chaarat and combined with the existing plan of M & A transactions," the report says. The share of Volynets in the unified structure is not disclosed.
Chaarat Gold is engaged in exploration and development of gold deposits in Kyrgyzstan. Recently resumed the fight for Kumtor (extraction in 2017 - 17.5 tons, one of the thirty largest mines in the world, according to Metals Focus), a license for the development of which belongs to Centerra, reported the Mining Journal. Chaarat Gold offers the Canadian company $ 800 million for the asset.
"Opportunities for asset consolidation in Central Asia and the CIS are significant," Volynets said in the message. He told Vedomosti that Chaarat is attracting debt and equity to finance the takeovers. Debt financing is organized by a consortium of large Russian and Chinese banks. The collection of money from investors is coordinated by the Bank of Montreal, which has already received confirmation of interest from several funds investing in mining production - Chinese investors, the Persian Gulf countries.
In May, Chaarat Gold announced its strategy for five years. It plans through mergers and acquisitions to create a gold mining company with a production of 1 million ounces, a resource base of 15-20 million ounces and assets in Central Asia. Now its largest shareholder is Chairman of the Board of Directors Martin Anderson (through him 35.5% through Labro Investments), China Nonferrous Metals Int'l Mining - 6.05%, Sarastro Group and UBS Group - slightly more than 4% each, 3,12% belongs to management. Capitalization on the London Stock Exchange - $ 119.14 million.
Volynets worked in the structures of Oleg Deripaska for six years from 2007 to 2013. Until 2010 he headed the direction of strategy and corporate development "Rusal Global Management". Since 2010, he was the chairman of the board of directors of En +, which unites Deripaska's assets in metallurgy and power engineering. In July 2013 Volynets left En + and moved to the structure of Senator Suleiman Kerimov. In 2014, he headed a consortium of investors, who was developing a rescue plan for Petropavlovsk. The company was in a difficult financial situation. The rescue plan was for Petropavlovsk to issue new shares worth $ 150-250 million in favor of the consortium, but its shareholders did not support it.
In Central Asia, there are few deposits that would increase production to 1 million ounces, says Maxim Khudalov, an analyst with ACRA. Chaarat Gold is aimed specifically at the purchase of the Kumtor mine. "The project economy is good. The ore is simple at the deposit, and the gold content per ton of ore, 3.5 g per ton, is quite high, "he says. "The situation on the global market is deteriorating because of the trade war between China and the United States, and in such circumstances investors are always invested in gold," the expert notes. In the industry there is a trend towards consolidation, Andrey Lobazov, analyst at Aton, adds: "Players join assets to ensure production and reserves growth, create synergy."