Russia's Petropavlovsk output target hit by floods-Shanghai Metals Market

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Russia's Petropavlovsk output target hit by floods

Company News 04:17:48PM Oct 22, 2013 Source:SMM

Tue, 22 Oct 06:31:00 GMT
 
 
* Says a shortfall to come from Pokrovskiy, Pioneer mines
* Says kept unit costs within 2013 guidance

(Adds details, quotes, context)

MOSCOW, Oct 22 (Reuters) - Russian gold miner Petropavlovsk has cut its 2013 production forecast by between 2.6 and 3.8 percent due to severe rains and widespread flooding in the Amur region, where its main assets are located, the company said on Tuesday.

Cities on the Amur River in eastern Siberia suffered the worst flooding in more than a century in the third quarter, causing damage estimated at $1 billion. [ID:nL6N0GU2K8]

"The weather has inevitably had some impact," Peter Hambro, chairman of Petropavlovsk, said in a statement.

"As a result we may not have access to some higher-grade areas, which were scheduled for processing this year, until the first quarter 2014."

The company has reduced its 2013 production guidance to 740,000-750,000 troy ounces from a previously planned 760,000-780,000 ounces. Its third-quarter gold output was down 7 percent year-on-year to 204,400 troy ounces, it added.

The shortfall will come predominantly from its Pokrovskiy and Pioneer mines, which were most affected by the flooding, the company added.

Its hard rock total cash costs per ounce are still expected to come within its previously stated range of $900-$1,000 per ounce, but will be towards the top end of this range, it said.


(Reporting by Polina Devitt; Editing by Jason Bush and Patrick Lannin)

((Polina.Devitt@thomsonreuters.com)(+7 495 775 12 42)(Reuters Messaging: polina.devitt.reuters.com@reuters.net))

 

 

Key Words:  RUSSIA PETROPAVLOVSK 

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Russia's Petropavlovsk output target hit by floods

Company News 04:17:48PM Oct 22, 2013 Source:SMM

Tue, 22 Oct 06:31:00 GMT
 
 
* Says a shortfall to come from Pokrovskiy, Pioneer mines
* Says kept unit costs within 2013 guidance

(Adds details, quotes, context)

MOSCOW, Oct 22 (Reuters) - Russian gold miner Petropavlovsk has cut its 2013 production forecast by between 2.6 and 3.8 percent due to severe rains and widespread flooding in the Amur region, where its main assets are located, the company said on Tuesday.

Cities on the Amur River in eastern Siberia suffered the worst flooding in more than a century in the third quarter, causing damage estimated at $1 billion. [ID:nL6N0GU2K8]

"The weather has inevitably had some impact," Peter Hambro, chairman of Petropavlovsk, said in a statement.

"As a result we may not have access to some higher-grade areas, which were scheduled for processing this year, until the first quarter 2014."

The company has reduced its 2013 production guidance to 740,000-750,000 troy ounces from a previously planned 760,000-780,000 ounces. Its third-quarter gold output was down 7 percent year-on-year to 204,400 troy ounces, it added.

The shortfall will come predominantly from its Pokrovskiy and Pioneer mines, which were most affected by the flooding, the company added.

Its hard rock total cash costs per ounce are still expected to come within its previously stated range of $900-$1,000 per ounce, but will be towards the top end of this range, it said.


(Reporting by Polina Devitt; Editing by Jason Bush and Patrick Lannin)

((Polina.Devitt@thomsonreuters.com)(+7 495 775 12 42)(Reuters Messaging: polina.devitt.reuters.com@reuters.net))

 

 

Key Words:  RUSSIA PETROPAVLOVSK