Canaccord stays at 'buy' on Petropavlovsk following Q3 sales and production data

Analysts at Cannacord Genuity reiterated their 'buy' recommendation and 16.0p target price on shares of gold miner Petropavlovsk thid quarter sales and production data.

With nine-month gold sales up by 24% on the previous year's level a 351,400/oz. and own mine sales of 342,600/oz., the broker said that the company's forecast for full-year own mine sales of 450,000-500,000oz was "readily achievable".

However, "harder to determine, is the ramp-up of sales from third-party concentrates, particularly since these are likely to be batch-treated," analyst Nich Hatch said in a research report sent to clients.

Year-to-date and for the third quarter, Petropavlovsk had only produced 13,100/oz. of gold from third party concentrates, versus the 100,800/oz. that had penciled-in for the year.

"Overall, however, we see this as a significant additional revenue generator for the group. We will review our forecasts in light of today's release and positive recent revisions to CG's gold price deck."