Petropavlovsk cut its full-year gold production forecast by 6 percent to about 470,000 ounces, and the company secured a $150 million loan facility, it said Wednesday.
The guidance was reduced after a maintenance delay at its Pioneer mine and a landslide at the Pokrovsky pit, the miner said. Petropavlovsk secured the loan facility agreement with ING Bank, UniCredit Bank and Raiffeisenbank. Its shares dropped 4.7 percent in London.
“This is disappointing. They’ve been clearly indicating that they were targeting 500,000 ounces this year,” said Charles Cooper, an analyst at Oriel Securities who has a “buy” recommendation on the shares. “They are perhaps a little ambitious in terms of giving the market targets, and clearly working in the Far East of Russia is challenging.”
Petropavlovsk said in October that it was “confident” of producing 500,000 ounces this year.
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