LONDON (Alliance News) - Gold miner Petropavlovsk PLC on Tuesday said it continued to make progress on cutting costs in the first half as its gold production came in line with its guidance.
Petropavlovsk said its gold production in the first half was 240,200 ounces, in line with its guidance on the back of an increase in high-grade ore reserves at its Andreevskaya site.
The group has maintained its full-year guidance for production of 680,000 ounces, but intends to maintain flexibility in output in order to cut its operating expenses and maximise its cash flow within a low gold price environment. It said that this guidance may not be "optimal" from the point of view of its cash generation.
The group maintained its full-year capital expenditure target of USD35 million but cut its cost guidance to USD600 per ounce from USD700 per ounce previously. It also reiterated its year-end net debt guidance of USD600 million, thanks to strong anticipated cash flows in the second half.
Shares in Petropavlovsk were up 0.8% to 6.3528 pence on Tuesday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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