Is this the end of the road for Russian gold miner Petropavlovsk?

Shares in Russian gold miner Petropavlovsk have collapsed 90% this year as sanctions have gutted its business model. Rupert Hargreaves asks if the company has a future.

Petropavlovsk's Pokrovskiy gold mine
Petropavlovsk's Pokrovskiy gold mine – the company has no operations outside Russia
(Image credit: © AFP via Getty Images)

Russian gold miner Petropavlovsk (LSE:POG) is one of the London market’s biggest casualties of the Russia-Ukraine war. Shares in the company have collapsed 90% this year as sanctions have gutted its business model. Worth more than £1bn a year ago, the enterprise is worth just £99m today.

It does not look as if the situation is going to get any better. Earlier this week, the firm was hit with a demand for $288m in cash from its main creditor, Gazprombank, which is demanding the immediate repayment of a $201m loan. The lender is also demanding that Petropavlovsk repays another $87m credit facility next week.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.