Petropavlovsk sees lower gold production in 2021 By Investing.com

By Samuel Indyk

Investing.com – Petropavlovsk PLC (LON:POG), the UK-listed Russian gold producer, has said it sees gold output declining in 2021 following last year’s management problems.

The company appointed Denis Alexandrov as their new CEO in December last year, with a new management team in place in January 2021.

Gold Production

The company now forecasts 2021 gold production of 430,000-470,000 ounces, consisting of 370,000-390,000 ounces of its own production and 60,000-80,000 ounces of third-party gold production. Last year, total production was 548,100 ounces.

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

The decline in production is expected to occur at its Albyn mine due to lower volumes and lower recoveries resulting from the switch to processing ore from the nearby Elginskoye deposit.

This may be partially offset by an expected increase in production from the company’s Pioneer mine, driven by higher grades and the commissioning of a new flotation plant.

Scheduled to launch by the end of the second quarter of this year, the Pioneer flotation plant will double capacity to process refractory ore from its own mines, thus reducing reliance on treating low-margin third-party concentrates.

Production from the Malomir mine is expected to be broadly in line with 2020 output levels, however, the company announced construction of a third line at the Malomir facility that will add further capacity from Q3 of 2022.