23rd Jan 2019 09:28
LONDON (Alliance News) - Petropavlovsk on Wednesday said it expects gold production to increase in 2019 following improved performance in the final quarter of 2018.
The stock was trading 4.6% higher on Wednesday morning at 7.32 pence a share.
Petropavlovsk's production in the three months to the end of December 2018 totalled 118,800 ounces of gold, up from 103,200 ounces produced in the same period a year prior.
The mining company said total gold production for 2018 was 422,300 ounces, in line with guidance of 420,000 ounces to 450,000 ounces. In 2017, Petropavlovsk reported gold output of 439,600 ounces.
At the end of November, Petropavlovsk commissioned the Pokrovskiy pressure oxidation facility, having worked on this project for almost a decade.
During the first week of December, Autoclave 1 successfully commenced processing refractory ore concentrate, reaching stage gold recovery of between 93% and 94%. This demonstrated the ability of the pressure oxidation facility to effectively process the metallurgically challenging refractory material, Petropavlovsk said.
Following the successful commissioning of Autoclave 1, Autoclave 2 was commissioned on December 27.
Autoclaves 3 and 4 are expected to be operational in June. The commissioning and ramp-up of those production facilities will create annual spare capacity at the plant of up to 250,000 tonnes, the company said.
Looking forward, Petropavlovsk said it plans to produce between 450,000 ounces and 500,000 ounces of gold in 2019.
"With all of the progress made in the second half of 2018, and the encouraging start to 2019, the board and I are looking forward to generating strong returns for all our stakeholders in the years ahead," said Chief Executive Pavel Maslovskiy.
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