Make Kitco Your Homepage

Petropavlovsk doubles mine production, gives credit to pressure oxidation hub

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

Petropavlovsk PLC reported its H1 yesterday that showed 13% higher revenues at $305 million and a swing in operating profit to $3 million compared to a loss of $24 million during the same period a year ago.

The Russian gold miner said its substantial investment in a pressure oxidation hub, just one of two in the country, is paying off.

"The commissioning of the POX plant has enabled Petropavlovsk to unlock the potential of our refractory ore reserves at Malomir, which has led to a near-doubling of gold production from a year ago," said Pavel Maslovskiy, Chief Executive Officer.

Petropavlovsk key operating mines—Pioneer, Malomir and Albyn—are in the Amur Region in the Russian Far East.

"This highlights the Group's ability to generate meaningful cash from refractory gold since Malomir now contributes around 40% of Group EBITDA compared to less than 20% a year ago. Looking forward, the portion of cash flow derived from refractory gold processing will increase, demonstrating Petropavlovsk's ability to monetize its significant refractory ore reserves."

The company expects to process around 200kt - 225kt of refractory concentrates, including third-party material, in the new processing facility.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.