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🕐20.10.11 - 08:27 Uhr
HEMSCOTT NEWS ALERT - PETROPAVLOVSK PLCRNS Number : 5100Q Petropavlovsk PLC 20 October 2011 20 October 2011
Production Report for Q3 2011 and Interim Management Statement
Petropavlovsk PLC ("Petropavlovsk" or the "Company", or together with its subsidiaries "the Group") today issues its interim management statement for the period from 1 July 2011 to date, in accordance with the UK Listing Authoritys Disclosure and Transparency Rules.
Highlights
Gold Production Report for Q3 2011
1. See end of document for definition of attributable production
Operations and production § The Groups total attributable gold production for Q3 2011 was 228,100oz, a 65% increase on the same period in 2010 and a 59% increase compared to Q2 2011; § The Groups total attributable gold production during the first nine months of the year totalled 447,200oz, 47% higher than the equivalent period in 2010; § Good performance at Pioneer, Malomir and Pokrovskiy continues through October with all mines on schedule, and accordingly the Group is confident of meeting its full-year production target of 600,000oz.
Development § Construction work at Albyn has been progressing ahead of schedule and has now reached an advanced stage. § Work on the development of the pressure oxidation ("POX") hub at the Pokrovskiy mine and the flotation lines at Malomir and Pioneer remains on schedule.
Gold sales, costs and financial position § Total gold sold during the first nine months of 2011 was 485,200oz at an average realised gold sales price of US$1,587, which was 33% higher than the price achieved during the same period in 2010; § The average realised gold sales price in Q3 2011 was US$1,750; § Total cash operating costs during Q3 benefited from the devaluation of the Rouble against the US Dollar; § Petropavlovsk has entered into a new US$200mln, 3 year banking facility at Libor +5% per annum with VTB Group; otherwise, the financial position of the Company as at 20 October 2011 has not materially changed from that reported at 25 August 2011.
Outlook for 2012 § The Groups 2012 production guidance will be announced in January 2012; § The guidance will take into account the optimisation of the mining schedules following recent additions to the Groups reserves and resources base.
Corporate update § The Company paid a final dividend of 7 pence per share on 28 July 2011 to shareholders on the register as at close of business on 1 July 2011 and on 24 August 2011, the Board of Directors approved an interim dividend of 5 pence per share, which will be paid on 11 November 2011 to shareholders on the register as at close of business on 7 October 2011; § In August 2011, as previously announced, the Board welcomed Dr David Humphreys as a Non-Executive Director.
IRC On 12 October 2011, the Groups 65.6% owned subsidiary, IRC, announced its Trading Update for the Third Quarter to 30th September 2011. § The continued ramp-up of the Kuranakh mine, with full production capacity of iron ore now being achieved on a sustainable basis; § Record production levels were reported at Kuranakh at record prices for magnetite and ilmenite concentrate; § Further progress has been made at K&S; § Strong cash balances with no significant external funding requirements forecasted; § Drawdown of ICBC loan to fund K&S development commencing in near-term.
Commenting on the announcement, Peter Hambro, Chairman, said:
"I am delighted to report that the Group has enjoyed another strong quarter, delivering record production levels which see us on track to achieve our annual production targets.
This was a result of a significant improvement in the Groups operational performance and efficiencies at every site when compared to the previous year, including a 15% increase in total volumes of mining works at Pioneer compared to the beginning of the year.
With Albyn nearing completion and our POX hub development progressing well, our development plans are also on track. Our balance sheet is healthy and has again been strengthened by the strong gold price environment during this year and an additional significant facility from VTB Group.
Looking ahead, we intend to provide the market with production guidance for next year in January 2012 together with our final operational results for 2011.
In the context of the high volatility and still uncertain outlook in the international markets, it is pleasing to be reporting such a strong performance, and a confident operational outlook for the full year."
Conference Call Details
There will be a conference call today to discuss the announcement at 10:30 (BST).* To access the call, please dial:
810 800 292 73011 if calling from Russia; 1 631 510 7490 if calling from the US; +44 (0)20 3140 0668 if calling from the UK or elsewhere.
Please then give the participant pin code 208227# to be transferred to the call.
* The conference call may include information relating to the shares and convertible bonds
ENQUIRIES
Operations and gold production: Pioneer
During the first nine months of the year Pioneer produced 234,300oz, 77% higher than the comparative period in 2010.
During the first nine months of the year, 22.6mln m3 of material was moved, which represents an increase of c.70% on the total material moved during the first nine months of 2010 (13.3mln m3), reflecting the contribution made by the delivery of the final additions to the mining fleet at the beginning of 2011 and changes to the organisation of mining works at the site following a comprehensive review at the beginning of the year.
The overall strong performance at Pioneer during the first nine months of the year indicates that it remains on track to produce its full-year guidance of 323,500oz.
Operations and gold production: Malomir
During the 
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