Petropavlovsk Q3 output falls, but holds annual guidance

Miner Petropavlovsk said third-quarter production fell 2%, but maintained full-year output guidance.

Production for the three months to September 30 decreased to 111,600 ounces from 114,000 a year ago, the company said on Monday, citing lower gold production from third-party concentrates.

Nine-month production was down 29% to 306,600 ounces due to a weaker first half.

Petropavlovsk said it still affirmed its full-year 2021 gold production guidance of 430,000-to-470,000 ounces, made up of 370 - 390koz in own gold production and 60 - 80koz gold from 3rd-party concentrate.

“With improved performance at each of our mines during the period, particularly Malomir, and supported by the launch of the Pioneer flotation plant, the company has made progress in reversing the overall declining trend in quarterly own-mined gold production seen since Q4 2019,” said chief executive Denis Alexandrov.

“We also increased throughput at our POX hub and the percentage of concentrate coming from our own mines, improving our margins.”

The company said that due to the worsening situation with the Covid-19 pandemic in Russia in recent weeks, the government has instituted a number of measures aimed at curbing the spread of the virus that are due to take effect in late October.

“In response, the company plans to allow some office staff to work remotely, and will limit travel to production sites, which could affect scheduling for some maintenance and repair work,” Petropavlovsk said.