Petropavlovsk says declining revenue is due to "transitional period"

(Alliance News) - Petropavlovsk PLC on Wednesday said declining revenue and gold sales reflect ...

Alliance News 1 September, 2021 | 8:58AM
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(Alliance News) - Petropavlovsk PLC on Wednesday said declining revenue and gold sales reflect its "transitional period" to supply its plant with more own-mined reserves.

The Russia-focused gold miner posted half-year revenue of GBP351.9 million, down from GBP522.7 million a year prior. Gold sales for the six month period fell to GBP187.1 million from GBP312.4 million.

Pretax profit multiplied to USD69.1 million from USD16.5 million in 2020. Petropavlovsk booked a finance gain of USD4.7 million in the period compared to a USD98.9 million loss a year before.

Aiding profit was also a 13% rise in average realised gold price to USD1,795 from USD1,640.

Own mined gold production decreased 26% to 158,300 tonnes in the first half of 2021 from 213,700 in 2020 as Petropavlovsk facilitated its "transitional period". The transition required a shift to mining refractory ore for stockpiling and a planned temporary shutdown of one processing plant.

"In the first half of the year, own-mine production continued the downward trend that started in 2020," Chief Executive Denis Alexandrov explained.

"However, we are now observing that trend reversing and expect higher production in the second half, supported by the recent launch of the Pioneer flotation plant."

Petropavlovsk maintained its full-year production target of 430,000 to 470,000 ounces of gold and price range target of USD870 to USD970 per ounce.

The FTSE 250 gold miner declared no interim dividend.

"We are currently in the final stage of the operational review my team and I began earlier in the year - the drafting of a new strategy and development plan for the Company that will help us realise the value of assets, support future production, and deliver improved returns to shareholders," added Alexandrov.

Shares in Petropavlovsk were up 1.3% at 21.28 pence in London on Wednesday morning trade.

By Josie O'Brien; josieobrien@alliancenews.com

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