Petropavlovsk PLC ("Petropavlovsk", the "Company" or, together with its subsidiaries, the "Group") today issues its Half-Year Report for the period from 1 January 2012 to 30 June 2012 ("H1 2012" or the "Period").
Summary
- Total attributable gold production for the Period of 279,100oz, up 27% on H1 2011 (219,100oz);
- 7% increase in gold sold (to 286,074oz) and 13% increase in average realised gold sales price (US$1,639);
- Record half-year revenues of US$546.8 million, up 15% versus H1 2011 (US$475.1 million);
- Total cash costs for hard-rock mines (excluding Albyn during its ramp-up phase) of US$697/oz, only 6% higher than in H1 2011 despite inflationary pressures;
- Underlying EBITDA increased by 10% versus H1 2011 to US$204.1 million, EBITDA margin of 37%;
- Operating profit of US$93.8 million (2011: US$152.4 million) and net profit of US$11.0 million (2011: US$108.2 million), principally impacted by higher depreciation charges, effect of foreign exchange and interest expense;
- Net cash from operating activities increased 152% to US$46.3 million;
- Interim dividend of £0.05 declared;
- 1Moz increase in Mineral Resources, despite depletion;
- Pressure oxidation project remains on track;
- The Group reiterates its full year production target of 700,000oz;
- Scheduled increase in production in H2 2012 is expected to significantly improve Group's profitability versus H1 2012.
