• 585 days Will The ECB Continue To Hike Rates?
  • 586 days Forbes: Aramco Remains Largest Company In The Middle East
  • 587 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 987 days Could Crypto Overtake Traditional Investment?
  • 992 days Americans Still Quitting Jobs At Record Pace
  • 994 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 997 days Is The Dollar Too Strong?
  • 997 days Big Tech Disappoints Investors on Earnings Calls
  • 998 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,000 days China Is Quietly Trying To Distance Itself From Russia
  • 1,000 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,004 days Crypto Investors Won Big In 2021
  • 1,004 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,005 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,007 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,008 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,011 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,012 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,012 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,014 days Are NFTs About To Take Over Gaming?
Two ETFs That Could Hedge Against Extreme Market Volatility

Two ETFs That Could Hedge Against Extreme Market Volatility

Runaway inflation, Russia’s war, sanctions,…

The Streaming Warriors Are in Trouble

The Streaming Warriors Are in Trouble

The growing consensus is that…

  1. Home
  2. Investing
  3. Stocks

Russian Billionaire Bails On Mid-Sized Gold Miner

Gold Miner

Russian billionaire Roman Abramovich is selling his stake in local mid-sized gold miner Highland Gold (LON: HGM), the latest in a series of mining deals involving the precious metal, which is trading at record highs.

Abramovich and other investors holding 40.06% of the Russia-focused gold miner have agreed to sell their shares to Fortiana Holdings Limited in a deal that values Highland at about $1.4 billion.

Fortiana, a Cyprus-registered company of Russian businessman Vladislav Sviblov, will make an offer to the rest of Highland’s shareholders at the same price of 3-pounds-per-share ($3.94), a 3.8% premium to Thursday’s closing price.

ABRAMOVICH AND OTHER INVESTORS ARE SELLING THEIR 40.06% STAKE IN HIGHLAND GOLD

Highland Gold is one of Russia’s top 10 gold producers, operating several mines in the country’s Far East. 

The agreement follows Fortiana’s sale last month of about 5% in another Russian gold miner, Petropavlovsk. Selling that interest gave the company cash to pursue other investment opportunities, it said at the time. 

Spot gold has climbed about 29% this year on the back mixed factors, including safe-haven demand, a weakening US dollar, negative real yields and a flood of monetary and fiscal stimulus.

Even with the likelihood of gold price volatility in the near term, investment demand should hold up over a longer time period, the World Gold Council said Thursday.

Abramovich sold last year a stake in Nornickel, Russia’s biggest mining company. The deal was the largest share sale by a Russian company since Magnit PJSC’s accelerated bookbuild offering in November 2017.

Fortiana’s acquisition of a stake in Highland Gold is expected to close in the fourth quarter of 2020.

By Mining.com 

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment