Petropavlovsk forecasts fall in annual production

Russian gold miner Petropavlovsk said it expected a fall in annual production with a lower third-party contribution due to a failure to secure enough concentrate for processing.

The company, which saw a boardroom shakeup last year, said it expected total 2021 gold production of 430 – 470,000 ounces (koz), down from the 548,100koz reported a year ago.

It added that this would be made up of own gold production of 370 – 390koz and third-party gold production of 60 - 80koz.

Capital expenditure was forecast to rise to $140m, including exploration spend of $20m, from $118m in 2020.

“Management disruption in 2020, prior to the arrival of the new executive team, resulted in the company missing the crucial annual contracting window to secure sufficient concentrate for 2021 delivery and processing,” the company said.

“However, efforts are underway to source additional material to meet the guided range and secure supplies for 2022.”

Petropavlovsk said it planned to deliver a new medium-term corporate development strategy by the third quarter, followed by the proposal of a dividend policy and finish a full management restructuring by the end of the second quarter “including addressing management oversight and talent gaps within the existing structure”.