Think up and believe
Earlier it was reported that the share of
Kyrgyzaltyn JSC states that all the shares of the Kyrgyz side are in place. Moreover, they continue to bring stable dividends.
The value of the securities portfolio remains unchanged, and no one took away Kumtor. Rather, on the contrary: the republic became the owner of additional income generating assets, which it can use in the future.
The experts of JSC say that a sensation was made out of the news about a year ago deal, which no one hid. And the people started talking about it right now in connection with the forthcoming presidential elections, when a political game begins traditionally in
Kyrgyzaltyn earlier analyzed the expediency of the deal and voiced fears similar to those that have now mastered the minds of the uninitiated people. That’s just, apparently, no one was interested in it then.
What is really?
In 2016, Centerra Cold Inc. acquired a new and profitable project. The management of the company concluded a deal, as a result of which another operating and promising mine was added to its assets. It is in
A joint company was established based on Centerra Cold Inc. and the direct owner of the Canadian mine Thompson Creek Metals Inc. (TCM). In fact, the transaction represents a reorganization for securities holders, and the increase in capital in form of a new perspective asset gives confidence in the future, that the value of their shares will continue to grow despite the declining Kumtor mine.
The current owners of Centerra Cold Inc. received about 92 percent of the shares of the future company, TCM — 8 percent.
Moreover, together with
The international securities market is based on the principle of capital growth, growth in the reserves and resources that was done by Centerra Cold Inc., shares of which are listed on the securities exchange in
Mount Milligan Mine, where extraction of ore is carried out by an open-pit method, requires much less expenses than Kumtor.
That is, in case of the stable operation of both projects, the cost price of gold will decrease, while the physical volumes of the mined precious metal will increase along with the profits of the shareholders.
Extension of Centerra Cold Inc. makes it possible for Kyrgyzstan to become an influential and powerful player in the world gold market, and also transfer the country into the category of investor states, experts believe.
And this, in its turn, will help to improve the image of the republic on the international arena, first of all, in a large business environment, the representatives of which the country’s leadership seeks to involve in the development of the economy of
Don’t run into the same trap
Suffice it to recall how much depreciated the very package of shares that some are mourning now. A few years ago, the Kyrgyz portfolio at Centerra Cold Inc. has fallen in price by a billion dollars — thanks to the anti-investment campaign that unfolded in the Parliament, and the inept actions of officials.
Not to be unfounded, we can only recall two figures. The first is $ 1.5 billion -cost of 32.7 percent of the shares held by the Kyrgyz side in Centerra Gold Inc. before the parliamentary campaign caused panic in the stock market. The second figure is $ 500 million — the price of the same stock of shares after the deputy hysteria. That is, in fact, the state was harmed of a billion dollars. But, as usual, no one was held responsible for this.
Now, after the reorganization of the corporation, the share of Kyrgyzstan in Centerra Cold Inc. indeed is 26.28 percent.
But I repeat, the number of securities belonging to the republic has remained unchanged, as well as their value. Simply, figuratively speaking, the corporation has expanded, while
By the way, experts familiar with the work of financial markets and stock exchanges recommend the players to pay attention not to the number of shares in a particular company, but to its capitalization, in other words, how much a package of its securities costs. It is this indicator that is the real estimate. In the end, one modest percentage of shares of Gazprom or the same Microsoft is more expensive than the whole control stock of shares of some supernumerary company. It is impossible not to know this, if you are so interested in «gold» theme.
Maybe we should better reflect on how to competently manage the Kyrgyz shares in Centerra Cold Inc., as other market players do, that will allow us to access the funds that are necessary for the development of our economy. The presence of a block of shares without proper management, unfortunately, does not give anything. And its size in percentage terms actually does not matter.