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Petropavlovsk posts first-half loss as debt conversion charge offsets rising sales
StockMarketWire.com
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Russia-focused gold miner Petropavlovsk swung to a first-half loss after rising revenue, boosted by higher output and gold prices, was offset by a loss related to a debt conversion option.
Net losses for the six months through September amounted to $22.0 million, compared to a year-on-year profit of $3.9 million.
Gold production jumped 42% to 320,600 ounces amid a 28% rise in the average gold price achieved by the company to $1,640 an ounce, sending revenue up 71% to $522.7 million.
Underlying earnings almost doubled to $192.6 million.
Petropavlovsk said the loss was caused by a negative non-cash adjustment of $122.2 million related to a fair-value loss on a conversion option reflecting an increase in the company's share price.
The company, which recently underwent a board shakeup, said that it was aiming to provide a greater focus on providing returns to all shareholders, while noting that it hadn't declared a dividend for eight years.
'The period since the requisitioned general meeting has been a challenging one, combining continued governance disruption and the Covid-19 pandemic,' chairman James W Cameron said.
'The board is unwavering in its dedication to resolving the legacy issues that are currently hampering the group from achieving its potential.'
'We have a clear plan which will drive change and will ensure that the company's shares more fully reflect the substantial underlying worth and potential of the business, creating value for all stakeholders.'
Story provided by StockMarketWire.com
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