Petropavlovsk blames reduced 2021 production plan on management disruption
(Kitco News) - Russian gold miner Petropavlovsk today announced that it expects the total gold production of 430 - 470koz in 2021, comprising of own gold production of 370 - 390koz and third-party gold production of 60 - 80koz.
For comparison, the company’s 2020 gold production amounted to 548koz, comprising of own mined gold production of 386koz and third-party concentrate gold production of 163koz.
The company said that third-party production is expected to be lower than 2020 production of 163koz due to reduced volumes of concentrate available for purchase and lower concentrate grades. 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, added Petropavlovsk.
Petropavlovsk (LSE: POG. MOEX: POGR) is a major integrated Russian gold producer with JORC Resources of 21.03Moz Au which include Reserves of 8.46Moz Au. Petropavlovsk's key operating mines (Pioneer, Malomir and Albyn) are in the Amur Region in the Russian Far East.