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Petropavlovsk swings to loss on mine writedowns, finance costs
StockMarketWire.com
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Russia-focused gold miner Petropavlovsk swung to a full-year loss after rising revenue was offset by asset writedowns and finance costs.
Net losses for the year through December amounted to $48.9 million compared to a year-on-year profit of $25.7 million.
The losses included a $74.9 million impairment driven by an adjustment in the valuation of the Albyn and Elginskoye projects.
The also included a $42.8 million loss on the fair value re-measurement of a conversion option of convertible bonds.
Revenue rose 33% to $988.5 million, boosted by a 6% rise in output and 30% rise the company's average realised gold price to $1,748 an ounce.
Underlying earnings before interest, tax, depreciation and amortisation rose 32% to $350.7 million.
Petropavlovsk said it was targeting completion of a full management restructuring by the end of the second quarter of 2021.
The work would include addressing management oversight and talent gaps within the existing structure and adding critical core competencies that were missing within the management team, the company said.
Petropavlovsk said it remained on track to meet full-year guidance of 430,000-to-470,000 ounces.
The company also released a reserves downgrade, saying its internal estimate of total mineral resources decreased 7% to 19.5 million ounces of gold, with reserves down 15% to 7.16 million ounces.
'Looking ahead, there is much to be addressed to drive improvement across the business in 2021 and beyond,' chief executive Denis Alexandrov said.
'The new management team continues to make progress enhancing operational governance and I am confident that the ongoing business review will present further opportunities to deliver greater transparency and efficiencies throughout the organisation.'
Story provided by StockMarketWire.com
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