Petropavlovsk PLC (LSE:POG) said gold production grew by 26% to 143,100 ounces (oz) in the fourth quarter of 2021, while full-year output fell to 449,800oz from 548,100oz, in line with the company's guidance range of 430,000-470,000oz.
Own-mined gold production increased by 1% year-on-year in 2021 to 390,400, at the top end of the guidance range of 370,000-390,000oz, supported by the launch of the Pioneer flotation plant in the second quarter and a strong performance at the Malomir mine, which more than offset lower output at the Albyn mine, the Russian gold miner said.
"Despite a challenging operational environment, Petropavlovsk achieved its 2021 production guidance and closed out the year with a strong fourth quarter performance," said CEO Denis Alexandrov.
Petropavlovsk forecast gold production in the range of 380,000-420,000oz for 2022, comprising own production of 345,000-365,000oz and 35,000-55,000oz of gold from third-party concentrate, as the company continues its transition to processing more own-mined refractory ore.
The outlook for total production is expected to be similar in 2023, but with a higher proportion of gold from own-mined ore, and to improve in subsequent years, the company said.
Pioneer gold production is projected to increase in 2022 as the new flotation plant processes refractory ore for the full year, while Malomir production is expected to remain stable, with slightly lower grades offset by higher mining and processing volumes, supported by the launch of the flotation plant expansion in the latter part of the year.
Meanwhile, Albyn production is expected to decline in the first half of 2022 as the processing plant works through stockpiles of lower-grade material from the Elginskoye deposit accumulated in 2021. It is expected to stabilise in the second half of the year.
The company's Pokrovskiy Pressure Oxidation (POX) Hub processed 110,000 tonnes of refractory gold concentrate in the fourth quarter, almost double that of the year-earlier period.
For 2021 as a whole, the POX Hub processed 311,000 tonnes, 27% more than the previous year.
The POX hub is expected to operate at or near full capacity throughout 2022 due to increased deliveries from Pioneer and Malomir.
"With the Pioneer flotation plant operating at full capacity and Malomir outperforming, we were able to fill our POX hub with more concentrate from our own mines, reducing our reliance on lower-margin third-party concentrate while maximising the plant's potential," said Alexandrov.
Gold sales totalled 130,100oz in the fourth quarter and 437,200oz for 2021 as a whole.
The average realised gold price for the final quarter fell 4% to US$1,796/oz, and rose 2% to US$1,791/oz for the full year.
Net gains from currency and gold hedging totalled US$1.5mln in 2021.
Petropavlovsk had cash of US$25.5mln at end-2021, down from US$34.5mln at end-September. Debt stood at US$590mln compared with US$592mln.