Petropavlovsk posts record production in first quarter

Petropavlovsk achieved record gold production in the first quarter as output increased at its Pioneer and Albyn mines in Russia.

Petropavlovsk achieved record gold production in the first quarter as output increased at its Pioneer and Albyn mines in Russia.

The group produced 136,800 ounces (oz) of gold for the first three months of the year, up 13% from 2012.

It sold 146,400oz of gold at an average price of $1,639/oz.

Chairman Peter Hambro said it was reviewing its strategy following a sharp fall in gold price from $1,700/oz at the beginning of January to a recent low of $1,380/oz.

"One option is to conserve cash by restricting discretionary capital and exploration expenditure whilst redoubling our efforts to move newly identified, non-refractory resources at Pioneer into mineable reserves so as to de-risk the production schedule for 2014 - the year of scheduled commissioning of the POX [pressure oxidation] Hub - and perhaps for longer," he said.

Petropavlovsk is on track to complete installing a POX processing facility at its Pokrovskiy mine to process flotation concentrate from Pioneer for commissioning in the third quarter of this year and first quarter in 2014.

The company reiterated its full-year production target of 760,000oz to 780,000oz. In the year ahead, the group has in place forward sales contracts for 302,100oz of gold to be cash-settled at an average price of US$1,663/oz.

"Operationally, the year has begun positively for Petropavlovsk with output on track to achieve the previously guided production target," Hambro added.

RD

Recommended

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022