Petropavlovsk boosts gold production 47% to 447,000oz in 9M
MOSCOW. Oct 20 (Interfax) - Petropavlovsk plc boosted gold production 47% year-on-year in January-September to 447,200oz (13.9 tonnes), the company said in a trading update.
Gold production rose 65% in Q3 to 228,100oz. (7.1 tonnes) and was 59% higher than in Q2.
Gold production by Petropavlovsk, '000oz:
| Project | Q3 2011 | Q3 2010 | % | 9M 2011 | 9M 2010 | % |
| Pioneer | 117,7 | 42,5 | 177% | 234,3 | 132,4 | 77% |
| Malomir | 22,2 | 3,4 | 553% | 60,1 | 3,4 | +18-fold |
| Pokrovskiy | 28,2 | 30,9 | (9)% | 70,1 | 90,3 | (22%) |
| Alluvial operations (incl. Tokur and the relevant share in joint ventures) | 60,0 | 61,5 | (2)% | 82,7 | 78,5 | 5% |
| TOTAL | 228,1 | 138,3 | 65% | 447,2 | 304,6 | 47% |
"Good performance at Pioneer, Malomir and Pokrovskiy continues through October with all mines on schedule, and accordingly the Group is confident of meeting its full-year production target of 600,000oz," the statement said.
Construction work at Albyn has been progressing ahead of schedule and has now reached an advanced stage. It is expected that the mine will be commissioned in the last quarter of 2011.
Total gold sold during the first nine months of 2011 was 485,200oz at an average realized gold sales price of $1,587, which was 33% higher than the price achieved during the same period in 2010. The average realized gold sales price in Q3 2011 was $1,750.
Total cash operating costs during Q3 benefited from the devaluation of the ruble against the US dollar.
Petropavlovsk has entered into a new $200-million, thre-year banking facility at Libor +5% per annum with VTB Group; otherwise, the financial position of the Company as at 20 October 2011 has not materially changed from that reported at August 25, 2011.
The Group's 2012 production guidance will be announced in January.