Updated July 14, 2008

Vysochaishy OJSC, gold-mining company, has twice tried to hold IPO, but gave the idea up.

And it has made the right option: now the company securities are more expensive.

Vysochaishy stocks' placem

ent at LSE was set to early 2007, but then it was put off to May.

However, it never took place.

Then Vysochaishy stockholders were afraid of the competitor – Polyus Gold OJSC – that could purchase the major issue part through agents. At that moment, according to calculations of MDM-Bank analysts, the company cost $350-450 million. And one and a half year on Vysochaishy OJSC was already estimated at $650 million.

However, there is some ambiguity with the current gold-miner attempt to hold IPO.

The company chief executive Sergey Vasiliev marks that within stockholders' meeting has been taken a principle decision to enter a stock exchange, and the owners currently discuss IPO volume, additional issue opportunity, terms and placement location.

The company owners comprise: Sergey Dokuchaev, Natalia Opaleva and Valerian Tikhonov own in 22,08% stocks, and they come from Lanta-Bank CJSC.

Lenzoloto OJSC (Polyus Gold structure) and Brishurt Limited (Tatyana Zotova owns 95%) own the same interests – in 6,72%. And 5,76% more owns Vladimir Kochetkov.

Vysochaishy is holding talks with the international company SRK to order

the technical audit of mineral resources.

Such audit conduct is an obligatory condition to enter the western stock market. Reporting of supplies is valid six months, thus, if estimation is due by year-end, Vysochaishy should hold IPO within first months 2009.

According to Federal Service for Financial Markets act that has come to force recently, non-strategic issuers can place no more than 30% stocks for circulation abroad. But Vysoch aishy owners would h

ardly place more, and in this case there is a serious risk of control loss over the company.

Will Russia's gold-miner securities be in demand ? "Quite often investors abroad prefer to invest into the Russian coal, oil and gas assets or fertilizers' producers", considers UniCredit Aton analyst Marat Gabitov.

"Quotations of the Russian gold-miners have fallen, but the American companies' indices have grown. It is hard to explain why it happens so". On the other hand, the world liquidity crisis can play into the hands of precious metals' producers. "Investors reassess the whole range of investment risks, and on the background of expected high inflation an opportunity to invest into "the eternal" metal can be a prospective idea", reasons head of Otkrutie FC analytics department Khalil Shakhmametiev.

"Troy ounce is already traded at $930 level at mercantile exchanges of New York and London and it is quite possible that in future the price grows".