Kazakh businessman Kenes Rakishev plans to return to the Russian gold mining. He is considering the possibility of acquiring three small assets in the far East. According to “Kommersant”, we are talking about Zapadnaya Gold Mining, Gold mine Nordgold and Bascom field “Poles”. Negotiations are at various stages, and decisions on the trades yet. Obstacles can become a large debt load of certain assets, as well as the constantly growing price of gold that prevents you to fix their cost.Kenes Rakishev is exploring the possibility of acquiring assets in the Russian gold mining, said three sources of “Kommersant” in the industry. According to one of them, in the most advanced stage are the negotiations at the Zapadnaya Gold Mining assets in the TRANS-Baikal region, Buryatia and Yakutia. Also, Mr. Rakishev is exploring gold mine Nordgold, owned by the sons of Alexei Mordashov. Another interesting businessman Aktiv — bamskoe field “Pole” said Kerimov.The parties do not officially comment on the situation, although the representative of the “Pole” assured “Kommersant” that the negotiations about the sale Yamskogo no.Mr. Rakishev has successful experience of investing in Russian gold mining: buying in 2017 22.4% in one of the largest Russian gold producer Petropavlovsk ($77.6 m for market), in 2019 he sold the asset when its market price was $90.4 million In may Kenes Rakishev told about the plans to buy a small asset in Russia, to consolidate them into a larger company.Zapadnaya Gold Mining belongs to management, after VTB sold were at his minority stake. The asset portfolio consists of two underground mines, Badran and Kedrovka, project on gold mining in the open way Aleksandrovskoe, and several exploration assets. Reserves are estimated at 543 tons. According to the Union of gold producers of Russia, in 2019, the company produced 3 tons of gold, EBITDA grew 14% to $57.1 million, revenues by 13% to $148 million, net income was $23.9 million against a loss a year earlier.The President of the Russian Union of gold producers Sergey Kashuba calls Zapadnaya Gold Mining good platform for development in the three leading gold-mining regions of the country. But Kommersant’s sources say that the deal can prevent high debt load Zapadnaya. The source in the structures of Mr. Rakishev said that after due diligence, it becomes clear how the debt will be taken into account in the case of the exit to the deal.Located in the Amur region gold mine Nordgold in 2019 increased production of refined gold by 24% to 60.1 thousand Troy ounces (1.87 tons). In 2019, the company started experimental-industrial mining and processing gold ore underground section of the mine. Work on it began in 2017 on the background of exhaustion of the reserves available for mining are openm way from the quarry operating for over 12 years. Apparently, Nordgold sells assets on the background of exhaustion of reserves. So, in November 2019, the government of Buryatia have announced plans to sell two mines in the region.Bamskoe field is part Nevachanskaya gold square and is located on the North of Amur region. At the end of the 2019 year ore reserves were estimated at 20 million tons with a gold grade of 1.8 grams per tonne. According to JORC gold reserves are estimated at 1.1 million ounces. The representative of the “Pole” said “Kommersant” that the company is in the field prospecting works “with the subsequent transition to the development field”.The price of gold in recent months is increasing and since mid-June, the metal has risen by 5%, to $1812 per ounce. This, however, as wrote “Kommersant”, complicates the negotiations on consolidation transactions, as the parties find it difficult to agree on a price. So, Kenges Rakishev in may, admitted that he had stopped negotiating the purchase of a major Russian gold producer GV Gold due to disagreements on the value of the asset.Eugene Zainullin
