Petropavlovsk's gold profits soar as third party gold production ramps up

(Kitco News) - Russian gold miner Petropavlovsk PLC (POG:LSE) reported that its full-year underlying profits improved after the Co. produced more gold and benefitted from higher prices, although costs did increase.

Production was up 6% to 548.1koz, comprising an 18% decline to 385.6koz of own gold produced and a 256% increase to 162.5koz of gold produced from the processing of third-party refractory gold concentrates at the POX Hub. Importantly sales also increased 6% to 546.5koz.

The average realized gold price increased by 30% to US$1,748/oz but as previously stated cost also rose to around $870 - $970/oz. Production remains on track to meet full-year guidance of 430 - 470koz and comprises 370 - 390koz of own gold production which is in line with 2020, and 60 - 80koz of gold from third-party concentrate which is lower than in 2020.