23rd Jan 2014 12:32
LONDON (Alliance News) - Petropavlovsk PLC Thursday said its 2013 full year production increased to meet its revised guidance despite flooding at Russian assets.
The gold mining company with operations in Russia said its full-year gold production increased 4.2% to 741,200 ounces from 710,400 ounces the previous year, meeting the company's guidance.
The company originally had a 2013 production guidance of 760,000 to 780,000 ounces but in October reduced this rate to 740,000 to 750,000 ounces due to the affects of bad weather.
Petropavlovsk said its fourth quarter total gold production equalled 242,000 ounces, a 14% increase on 211,900 ounces in the same quarter in 2013.
The company said its Albyn mine achieved a full year gold production increase of 34% to 134,800 ounces from 89,300 ounces the year before, and its Malomir mine increased gold production 11% to 115,500 ounces from 103,300 ounces the year before.
However, gold production at the company's Pioneer mine fell 6.0% to 314,800 ounce from 333,600 ounces, and gold production from its Pokrovskiy mine fell 1.0% to 91,200 ounces from 92,100 ounces as floods from heavy rain affected operations at both mines.
The company set a 2014 production level of 625,000 ounces of gold, a significant decrease on the 2013 figures due to the disposal of certain high-cost alluvial assets in 2013 beginning to hit production.
Petropavlovsk also said that total cash costs of production for 2013 are expected to be in line with the company's previous guidance of USD1,000 per ounce and that the company achieved an average USD1,519 per ounce average realised gold price during the period.
The company noted that in 2014 it forecasts a 5% reduction in total cash costs for hard-rock production to USD950 per ounce, a 68% reduction in development and maintenance expenditure to USD60 million, and a 27% reduction in exploration expenditure to USD34 million.
Petropavlovsk shares were down 0.4% to 71.75 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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