(Alliance News) - Russian gold miner Petropavlovsk PLC on Wednesday reported a drop in 2019 profit despite revenue growth and said that it remains on track to meet its 2020 output target based upon first-quarter production.
The FTSE 250-listed company also said Chair Roderic Lyne will retire from the board following the company's annual general meeting on June 30 and will be succeeded by newly appointed Non-Executive Director Fiona Paulus.
Petropavlovsk also has appointed Tim McCutcheon as non-executive director with immediate effect.
Paulus has over 37 years' global investment banking experience, having held senior management roles with a number of leading international investment banks based in London, Europe and North America. McCutcheon is currently president of Wealth Minerals Ltd, a lithium asset development company focused on assets in Chile.
Petropavlovsk recorded pretax profit of USD52.9 million for 2019, down 36% from USD82.4 million in 2018. Underlying earnings before interest, tax, depreciation and amortisation jumped 45% year-on-year to USD264.8 million.
The drop in 2019 profit was attributed to higher impairment reversals in 2018 and reduced interest capitalisation in 2019, as well as the impairment of the company's holding in iron ore producer IRC Ltd as a consequence of the potential disposal of the investment.
Annual revenue surged 48% to USD741.6 million from USD499.8 million, with gold production rising to 517,300 ounces. Gold sales increased 39% to 514,000 ounces.
For 2020, Petropavlovsk reiterated its production target of 620,000 to 720,000 gold ounces, based upon first-quarter output, which increased 73% year-on-year to 186,200.
The company had a net debt of USD561.3 million at the end of 2019, down from USD568.0 million a year before.
Petropavlovsk doesn't pay a dividend. It said Wednesday it is reviewing its dividend policy, and a statement will be made "in due course".
Petropavlovsk said there have been no cases of Covid-19 amongst its employees as its operations are isolated away from population centres.
The company has implemented measures in each operating jurisdiction to meet Russian government guidelines which are appropriate to the specific needs of each location, including head offices, it said.
Shares in the company were down 6.3% at 23.60 pence each in London on Wednesday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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