http://www.kitco.com/charts/livegold.html

cheers GF.

UPDATE 2-Petropavlovsk says on track to meet output target
21 Jul 2011 - 09:26

* H1 gold output 219,100 ozs, marginally ahead of target

* Reiterates 600,000 ozs production target for year

* H1 gold sales 266,000 ozs at average price of $1,455

* Operating costs in line but under pressure

* Enters $340 mln banking facility, capex fully funded


(Adds chairman interview, detail, share price)

By Julie Crust

LONDON, July 21 (Reuters) - Russian miner Petropavlovsk said gold output jumped 32 percent in the first half, marginally above expectations, and reiterated full-year guidance as it continues to rebuild confidence after a disappointing performance last year.

The London-listed miner also put an end to market concerns about its financing after announcing $340 million of new committed banking facilities, mainly from Russian banks, meaning its capital expenditure programmes are fully funded.

Petropavlovsk said it produced of gold 219,100 ounces in the first half and retained its 2011 output target of 600,000 ounces, in a trading update. It produced 506,810 tonnes in 2010, missing its target for 510,000-530,000 tonnes.

It had slashed its forecast twice in 2010 from an original 670,000-760,000 ounces after a delay in the delivery of major mining equipment, harsh weather as it worked to ramp up production at the Pioneer mine in Russia's far east, and lower grades. [ID:nLDE6A114X]

Gold sales surged 71 percent to 266,000 ounces as the miner also benefited from a 26 percent rise in the price it received for its gold.

The stock was up 3.0 percent at 0746 GMT, valuing the company at 1.6 billion pounds ($2.6 billion).

Shares in the company underperformed the gold price in the first half, along with many other London-listed gold miners, but have jumped 16 percent this month as gold prices hovered near record highs [GOL/].

"The gold price will continue to rise and I see no reason why $2,000 an ounce should be beyond our reach," Chairman Peter Hambro told Reuters, although he noted it was hard to predict the timing.

"Who knows what's going to happen today? If the euro thing goes wrong today, we could see $2,000 tomorrow."

European Union leaders will meet on Thursday to seek a convincing solution to Greece's debt crisis. Failure to reach agreement could cause economic damage to the global economy, the head of the European Commission warned. [ID:nL6E7IK1QO]

Gold prices have risen 13 percent this year, hitting a record $1,609.51 an ounce on July 19, on concerns about the euro debt crisis and U.S. debt ceiling talks.

Petropavlovsk said operating costs were in line with its estimates, but have come under pressure from industry-wide inflation and appreciation of the rouble against the dollar. It will provide details of costs when it releases first-half results.

"We now expect the shares to rally into first-half earnings on August 25, on expectation the company is on a firm footing operationally and that management is finally on track to meet or exceed guidance," said Liberum Capital in a note.

Petropavlovsk gave some positive updates on its exploration programme.

It has found two new mineralised zones at its Pioneer project, one of which is showing high grades, that contain non-refractory and refractory mineralisation.

"We haven't got the JORC (resource estimate) numbers for these, but they are significant because it means there is more oxide ore which we can process, and we are not so immediately reliant on the refractory ores.

"The need to switch from one type of ore to another is delayed, which is very good news."

It is difficult to recover gold from refractory ore, which accounts for about 80 percent of Russia's reserves, using standard processes, so the company is constructing a $181 million pressure oxidation (POX) plant.

Fears the miner would have to turn to the market to fund investment, including construction of the POX plant, had been once of the reasons for the company's underperformance in the first half.

($1 = 0.620 British Pounds)

(Editing by David Hulmes

Dont forget we have this update on 25th of August.......

Long-term production forecast

The Group is currently in the process of re-evaluating its long-term production forecasts for 2012-2015, considering recent positive exploration results. Further details will be provided together with the Group's 2011 half-year results, scheduled for publication on 25 August 2011

will keep momentum in the SP going imo.

The Group is planning to announce a new JORC based Reserve and Resource estimate on the 25th of August along with the Interims.

long way off i know, but short odds on big run up b4 25/8, so i'll try to remember to bank at least partial profits b4 the news - and buy back afterwards (cheaper?)

I think that this has enough legs for a jump over 900p.....beyond that not sure but the sp has momentum...

900 is a psychological "round number" hurdle, but +/-950 where falling 200 dma is met is likely to be sterner

before xmas??

just in on twitter.....

#POG Michael Hewson at CMC Markets says buy the dips in the gold price Friday, July 22, 2011http://bit.ly/orjGB3

Broker upgrade.......

Petropavlovsk FTSE 250 Basic Materials Overweight 1200 843 42.3% HSBC

Target Price 1200p .......... Upside.... 42.3%

Another broker note out from lale yesterday evening.....

evolution securities maintains buy rating...

target 1520.

Now looking interesting, imo.

Good finish to the end of the day going on here at POG.

Results 25th of Aug.

Presumably when the U.S. agree on a plan, gold will take a bit of a hit?

I hope so - I'm short :-)

I don't think that it will make much difference and if it did it would only be a temporary blip....

.

If US did reach an agreement , it would be a buying opportunity if gold did fall sharply.Because it would be some sort of fudge.

if...if...if.......

I cannot see gold plunging regardless of the much needed agreement that just has to be hammered out between Obama and the Republicans.....

.