Wednesday, September 27th 2023
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Chesterfield Resources PLC

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Funded and ready for action for Chesterfield Resources.

 

“…The shares will turn around. They’re worth a lot more than they are now. If you are drilling for Copper and hit Gold, then thank you very much…”

 

The Cyprus drilling update feeding into an ‘excellent suite of results‘ announced by Chesterfield Resources was overshadowed by Russia’s invasion of Ukraine. Markets plummeted and Russia-associated stocks were hammered including Chesterfield’s 17.9% shareholder, the FTSE 100 constituent, St. Petersburg-headquartered Polymetal International.
Irrespective of association, Polymetal is the 10th biggest gold producer in the world, and very early on in Chesterfield’s operational life it took out a significant stake because it liked what Chesterfield was unearthing in ‘gold rich’ Cyprus. 
Chesterfield do not see the relationship with Polymetal as a risk as they are protected by a legal agreement and the relationship has been very constructive.
Polymetal is viewed as pretty apolitical in Russia and is widely held by blue blood institutions in London.
Under a legal agreement this relationship is kept at arms length, protecting the company and its shareholders from any undue influence. Polymetal can not control or influence the running of the  company.

It cannot sell shares in the company, nor increase its position by more than 1%, for the first three years of the relationship without permission of the company.

The company has enjoyed a very positive relationship with Polymetal, which has visited the site and given useful informal technical advice.

Executive Chairman Martin French says recent results were a pleasant surprise.  “They’re a lot better than we thought particularly with all this gold content, so we’re very pleased with that.”   It’s the best set of results to come from Cyprus and French is hopeful there’s more to come. The push is now on the Westline Trend, and French says “So far it’s started to yield some excellent results.”

In terms of the recent placing, French says it was a difficult time to be raising money for the capital required for the Cyprus/Canada campaigns and the preparation for a TSX listing.
With the benefit of hindsight, the pre-invasion placing was done at the right time.
Speaking to Sarah Lowther on the day before the Russian invasion, Martin talks about the recent placement, director dealings, the broadening of the shareholder base and the founder’s decision to step down from an executive role.

Watch Martin talking about the Cyprus project in this conversation with BrighterIR

Access the 2022 corporate presentation

 

Chesterfield Resources is one of  TMS Reach’s 12 mining companies to follow in 2022

 

Follow the company on Twitter – @ChesterfieldPlc

 

The author was remunerated but does not hold shares in the company

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