Petropavlovsk PLC (LSE:POG) was one among London’s top risers for a second day as the Russia-based gold miner reported production was going well in spite of sanctions.
The miner can’t sell any gold to Gazprombank, its principal offtaker due to financial restrictions in the wake of Russia's invasion of Ukraine.
And the Russian-state owned bank also now wants Petropavlovsk to repay a US$288mln loan.
Yet this has not yet affected production with total gold output up 8% to 103,000 oz in the three months to March while the forecast for the whole of 2022 was only marginally reduced to 375-405,000oz.
"Petropavlovsk achieved its production targets in the first quarter of this year, with higher output from Pioneer, aided by its new flotation plant, and 3rd-party concentrate offsetting expected lower production at Albyn and Malomir due to lower grades," Denis Alexandrov, chief executive said.
“In this rapidly changing environment, we continue to monitor the situation to take all necessary steps to ensure the continuity of our business and compliance with sanctions, and to plan for contingencies that may adversely impact our operations," he added.
Cash at the end of March was US$72mln against debt of US$624mln.