Petropavlovsk’s gold production slumps 49% in first quarter on lack of third-party concentrates

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Petropavlovsk PLC‘s (LON:POG) gold production slumped 49% in the first quarter mainly due to a previously flagged issue with a lack of third-party concentrates.

Total gold production sank to 95,600 ounces, from 186,200 ounces in the year-earlier quarter, as concentrate gold output dropped 84% to 13,200 ounces as a result of lower volumes of concentrate available for purchase and lower grades in the concentrates supplied.

Last month, the Russian gold miner was forced to lower its production guidance for the year.

READ: Petropavlovsk sees gold output falling in 2021 as management issues disrupted third-party concentrate contracts

First-quarter production of its own mined gold fell 19% to 82,400 ounces as reduced output at its Albyn and Pioneer mines outweighed marginally higher output from its Malomir mine.

“Quarterly output was reduced year-on-year due to lower production from Albyn, where mining has moved to the nearby Elginskoye deposit, and as a result of processing lower volumes and grades of third-party concentrates at our POX [Pokrovskiy Pressure Oxidation] hub,” said chief executive Denis Alexandrov.

“In the second half of the year, we anticipate higher output at Pioneer, following the commissioning of its new flotation plant in Q2, and a potential increase in third-party material,” he added.

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