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Drilling Reports

Petropavlovsk gold production up

18 July 2017 07:49

Petropavlovsk announced a 19% year-on-year increase in total gold production in the first half of 2017.

This was around 232,400oz compared to 195,600oz in the first half of 2016. PRODUCTION HIGHLIGHTS

- Production forecast for full year production of c.420,000 - 460,000oz reconfirmed

- From the beginning of 2017, the Company moved to using gold poured as the definition for production

GOLD SALES

- 19% yoy increase in physical volumes of gold sold - c.231,800oz vs H1 2016 c.195,400oz

- 5% increase in average realised gold price - $1,255/oz, vs H1 2016 $1,194/oz

- As at 30 June 2017, the Group had outstanding hedging contracts for 500koz of gold at an average price of $1,252/oz

NET DEBT

- 5% reduction in net debt as at 30 June 2017 - c.$570m (preliminary unaudited) from $599m as at 31 December 2016

Executive Chairman Ian Ashby said: "The increase in production in first half was due to operational efficiencies.

"The operations are currently progressing in line with the company's plan.

"The wide range in the production forecast for the full year reflects the Company's conservative approach to the development of underground mines at Pioneer and Malomir.

"The development of the POX plant is currently progressing on schedule and on budget. Further exploration of new discoveries made in the last year continues.

"The Board's current focus is on the timely delivery of the company's stated objectives: development of the POX Hub; the commissioning of underground mining operations; and the optimisation of the company's capital structure.

"A more detailed update on the Group's operational progress and outlook will be included in the interim results announcement."

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Related Company: POG

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