Petropavlovsk EBITDA down 18% to $488 mln in 2012, below forecast
MOSCOW. March 28 (Interfax) - Russian gold producer Petropavlovsk saw its earnings before taxes, depreciation and amortization (EBITDA) fall 18% to $488 million in 2012, the company said on Thursday.
Analysts told Interfax in a consensus forecast that EBITDA would decline 16.6% to $498 million.
The net loss under International Financial Reporting Standards (IFRS) was $243.9 million, up slightly from $240 million in 2011.
"Net loss on disposals of a number of non-core assets of $26.9 million, $197.9 million fair value write-down of IRC's net assets and $21 million of other impairments in IRC and $109.5 million impairment of Yamal and other non-core assets took their toll and, when added to continuing interest expense and depreciation charges, the welcome $487.7 million EBITDA number is transformed into a disappointing loss of $243.9 million," the report said.
Petropavlovsk's loss per share was $0.85 in 2012, compared to profit per share of $1.24 in 2011.
Petropavlovsk's revenue rose 9% to $1.375 billion, compared with the consensus forecast of $1.353 billion.
Total average cash costs came to $875 per ounce in 2012, compared to $662 per ounce in 2011.
Total cash costs of hard rock mines stood at $805 per ounce. This year, Petropavlovsk plans to keep that figure at the same level.
Capex totaled $408.2 million last year. This year, according to the plan, capex will come to $369 million, which is roughly 10% below last year and 35% lower than in 2011. Sixty percent of capex will be used to develop autoclave facilities at the Pokrovskiy Mine, 15% will be spent on tailing dam and infrastructure at the Albyn deposit, 10% on a flotation unit at Malomy, 10% on tailings for Pioneer and Malomy, and 5% on other projects. Petropavlovsk plans to spend $50 million on geological survey.
In 2014, capex will again be reduced and total $100-$150 million.
Net debt soared 35% to $1.063 billion in 2012.
"At a $1,600/oz spot gold price and taking into account the Group's hedging program, net operating cash flows in 2013 are expected to be sufficient to cover the Group's projected capital expenditure, maintenance and exploration programs. Hence, the Group's net debt position at year-end 2013 is forecast to be unchanged compared to its position as at December 31, 2012 (excluding IRC)," the report said.
In 2014, Petropavlovsk plans to reduce its debt by reducing capex.
Petropavlovsk has changed the lower threshold of gold output for 2013 - the forecast is now 760,000-780,000 ounces of gold, compared to the previous guidance of 740,000-780,000 ounces, which the company announced in January. Therefore, production could rise 7%-10% over 2012. In the first two months of this year, the company had produced gold in line with its budget.
