(Alliance News) - Petropavlovsk PLC maintained its annual production guidance on Wednesday despite a significant fall in gold production over the first half.
The FTSE 250-listed gold miner reported a 39% fall in total gold production for the half ended June 30 to 195,000 ounces from 320,600 ounces a year before.
Sales came in at 187,100 ounces, sinking 40% from 312,400 ounces. However, the company recorded an average gold price which was 9.5% higher year-on-year to USD1,795 per ounce from USD1,640.
Petropavlovsk operates three mines, namely Pioneer, Malomir and Albyn, which are all located in the Amur region in the Russian Far East.
Chief Executive Denis Alexandrov said: "The first half of 2021 was a transitional period for Petropavlovsk as we prepared to launch the Pioneer flotation plant, which heralds the mine's shift from processing non-refractory ore to being a producer of refractory concentrate to feed our Pokrovskiy POX hub. I am proud to highlight that we launched the plant one month ahead of our revised schedule. With the Pioneer flotation plant and increased deliveries of third-party concentrate in the second half, we are confident of meeting our full-year production guidance for 2021."
Petropavlovsk's annual production guidance is between 430,000 ounces and 470,000 ounces.
Petropavlovsk is currently undergoing a business review "to deliver efficiencies regarding the corporate structure, management systems and operational processes". The company expects to develop a new medium-term corporate strategy due for completion in the third quarter of 2021.
Petropavlovsk shares were up 1.7% to 21.60 pence each in London on Wednesday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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