OAO Polyus Gold fell to a two-month low after Russia’s biggest gold-mine operator released lower- than-expected production figures and an erroneous report suggested the stock was removed from a key index.
Polyus dropped as much as much as 1.5 percent to 1,339.30 rubles on the Micex exchange, the lowest price since May 27. It was 1.3 percent down at 1,342 rubles by 12:35 p.m. in Moscow.
Gold production at Polyus’ mines increased by 4.7 percent in the first half of this year from the first six months of 2009, according to a statement from the Regulatory News Service. This was less of an increase than analysts expected, said Marat Gabitov, a mining analyst at UniCredit SpA in Moscow, and Mikhail Stiskin, a senior metals and mining analyst at Troika Dialog, Russia’s oldest investment bank.
Shares of the Polyus Gold International, the company that resulted out of Polyus’ takeover by KazakhGold (KAZ) Group Ltd., won’t be included in the dollar-denominated MSCI Russia Index, Russian newswire Interfax said in a report it later withdrew.
“Weak first-quarter operating results and an erroneous message from Interfax” pushed the stock lower, Stiskin wrote in an e-mail. “Continuing controversy around the reverse takeover and the situation at KazakhGold” is also affecting the stock, he said.
Regulators in Kazakhstan last month annulled their approval of the takeover deal between KazakhGold and Polyus. The Stepnogorsk, Kazakhstan-based company is the focus of a fraud investigation by the Central Asian nation’s financial police.
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