Yahoo Finance Gold miner Petropavlovsk appoints KPMG to investigate deals
Russia-based gold miner Petropavlovsk has appointed KPMG to investigate historic deals in the face of concerns about its corporate governance.
KPMG will look into transactions involving the company and its subsidiaries in the three years to August 2020, focusing on related-party transactions, Petropavlovsk said.
Shareholders voted 84pc in favour of the investigation at a meeting in August as boardroom turmoil rocked the company.
Chairman James Cameron, who took over in August following a shareholder coup that resulted in several board members being ejected, said: “The current board is committed to transparency and to exposing any historic instances of failed corporate governance, as well as to the recovery of any misappropriated funds or assets.”
The company added: "The board believes that it has already identified several areas which warrant further enquiry and will be providing such information to KPMG.”
Petropavlovsk, which operates three mines in Russia’s Far East, has been rocked in recent years by shareholder power struggles.
In August founder Peter Hambro and chief executive Pavel Maslovskiy along with other board members were ousted following a resolution brought by shareholder Everest Alliance.
Rival Russian miner UGC owns a 23pc stake in the miner, which produced 320,000 ounces of gold in the half year to the end of June, a 42pc increase.
Mr Cameron also said the company had “failed to deliver value to its shareholders and employees over many years” – accusations its former bosses have previously rejected.
The shares dipped 1.5pc in morning trade to 26.30p.
Despite the turmoil, Petropavlovsk shares have risen 107pc in 2020, with the gold price having enjoyed its strongest year in more than a decade.
