(Alliance News) -Â Russian gold miner Petropavlovsk PLC on Monday reported revenue growth in 2020 as gold prices improved, but profit was dented by a write-down.
Revenue for 2020 rose 33% to USD988.5 million from USD741.6 million in 2019, reflecting a rise in gold sales and higher prices, but pretax profit dropped 49% to USD27.2 million from USD52.9 million.
Hitting profit was a USD55.8 million write-down. "Following re-classification of 29.9% interest in IRC as assets held for sale, the group recognised a USD55.8 million write-down to adjust the carrying value of net assets of disposal group to fair value less costs to sell," it explained.
Meanwhile, operating expenses rose 42% to USD840.5 million.
Total gold produced in 2020 rose 6% to 548,100 ounces, while sales also increased 6%. The average realised gold price jumped 30% to USD1,748 in the year.
"Petropavlovsk delivered a solid financial performance in 2020 despite numerous challenges," said Chief Executive Denis Alexandrov.
Looking ahead, Petropavlovsk said production is on track to meet its 2021 target of 430,000 to 470,000 ounces of gold.
Alexandrov said: "There is much to be addressed to drive improvement across the business in 2021 and beyond. From a cash flow perspective, one of our immediate opportunities is maximising utilisation of the POX Hub using our own refractory gold concentrates to reduce reliance on lower-margin third-party material via the successful on-schedule delivery of two major projects - the Pioneer flotation plant later this year and the Malomir flotation plant expansion next year."
Shares in Petropavlovsk were up 2.2% at 25.74 pence in London on Monday.
By Lucy Heming;Â lucyheming@alliancenews.com
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