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Peter Hambro Mining (POG)

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Tuesday 20 December, 2005

Peter Hambro Mining

Omchak JV Dividend Received

Peter Hambro Mining PLC
20 December 2005


20 December 2005
                     Omchak Joint Venture Dividend Received

Peter Hambro Mining plc ("PHM") announces that the Omchak Joint Venture ("Omchak
JV" or the "JV") has received a cash dividend from the companies constituting
the assets of the JV in an amount sufficient for PHM's interest in the joint
venture to revert back to 50%. The terms of the joint venture agreement provide
for PHM's equity interest in the joint venture to increase if the agreed level
of dividends is not received for the relevant 12 month period. The cash payment
in respect of dividends during 2003 and 2004 was not received and PHM's holding
in Omchak had consequently temporarily increased to 65% from April 2004. As
outlined in the 2004 Annual Report and September 2005 interim results, receipt
of the dividend lowers PHM's 2005 attributable production forecast by
approximately twenty five thousand ounces.

Omchak JV
Omchak JV was formed in July 2003 with PHM contributing US$7.2 million in cash
and the Russian participants contributing their controlling stakes in two
operating gold mines in the Magadan region. In addition to such contribution,
the Russian participants guaranteed a minimum aggregate dividend flow to the
joint venture for 5 years of US$7.2 million with a specific level agreed for
each year from each of the assets. Under the terms of the joint venture
agreement, if such dividend level is not maintained in any one year, PHM's
interest in the joint venture increases proportionately and reverts if the
dividend arrears are paid within the next year. In the absence of a dividend
payment for 2003 and 2004, PHM's interest had risen to 65% and was expected to
rise again in 2005 if no dividend was to be paid. As a result of today's payment
PHM's equity interest in the Omchak JV returns to its original 50%. The net
effect of this payment and movement in ownership on the financial accounts of
PHM, for the period since the JV was formed, is not material since the JV is
accounted for in consolidation.

PHM Group Attributable Production Forecast
Following the cash receipt, PHM's interest in the Omchak JV will not increase
beyond 65% during 2005. The 2005 accounts will equity account for 65% to 19
December 2005 and 50% from this date to the year end. As previously identified
as a consequence of the receipt of the dividend, the result is an approximate
25,000 ounces reduction of PHM's 2005 attributable production forecast to
246,000 ounces. PHM expects to report a 2005 attributable production figure with
the 2005 Group Trading Statement at the end of January 2006.


Enquiries:
Alya Samokhvalova, Director of External Communications     +44 (0) 207 201 8900
or Marianna Adams                                           www.peterhambro.com
Peter Hambro Mining

David Simonson or Tom Randell                              +44 (0) 207 653 6620
Merlin




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