Bloomberg News

Petropavlovsk Gold Output Rises 65%, Holds Annual Target

October 20, 2011

(Updates with full-year guidance in second paragraph.)

Oct. 20 (Bloomberg) -- Petropavlovsk Plc, a Russian gold mining company, said third-quarter output rose 65 percent after production increased at its Pioneer site.

So-called attributable gold output climbed to 228,100 ounces from 138,300 ounces a year earlier, the London-based company said today in a statement. Petropavlovsk reaffirmed its 600,000-ounce full-year forecast.

Gold producers are seeking to expand to meet rising demand that has driven up prices as investors seek a haven from Europe’s sovereign-debt woes and weakening currencies. Gold for immediate delivery averaged a record $1,706.38 an ounce in the third quarter, compared with $1,227.73 a year earlier.

“Good performance at Pioneer, Malomir and Pokrovskiy continues through October with all mines on schedule, and accordingly the Group is confident of meeting its full-year production target of 600,000 ounces,” the company said in the statement.

Production in the first 9 months of the year was 447,200 ounces, Petropavlovsk said.

--Editor: John Viljoen

To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net.

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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