(Sharecast News) - Petropavlovsk said annual gold production would be less than expected and that it had delayed full commissioning of its Pioneer flotation plant in Russia.
The FTSE 250 gold miner said production would be below guidance mainly because of lower than expected grades, the bulk from from third-party material, and Covid-19's effect on deliveries of third-party concentrates.
The miner has also put full commissioning of its flotation plant at the Pioneer project in Russia's Far East Amur region on hold from the fourth quarter of 2020 to the first quarter of 2021.
"This reflects delays to the commissioning of some equipment items and a desire to avoid full commissioning during the winter months," Petropavlovsk said.
Group production will be between 560 koz and 600 koz compared with guidance for 620 koz to 720 koz. Gold production of the company's own ore will be between 395 koz and 415 koz versus guidance for 430 koz to 460 koz.
Costs will also be higher at $90m to $100m compared with guidance of $70m to $80m. Petropavlovsk shares fell 5% to 31.05p at 08:28 BST.
23 Apr 2020 10:50
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