Higher gold production and project expansion helped boost Peter Hambro Mining as investors responded positively to the company’s trading update.
Peter Hambro, executive chairman, said a 54 per cent rise in first half attributable gold production to around 222,600oz was “in itself very pleasing”.
Peter Hambro shares rose 4.7 per cent on the day to 626˝p.
The company is expecting second half production, which is usually higher than the first because of alluvial and heap-leach operations active during this period, to be increased by the commissioning of a second processing line at its Pioneer open pit operation.
The group said that the Pioneer deposit was on track to meet its full-year production target of 500,000oz. The Pioneer deposit is expected to further expand its capacity in September, when a second mill will become fully operational.
Although gold production at its other main producing mine, Pokrovskiy, was slightly down at 91,700oz compared with 92,100oz in the first half of 2008, this was still in line with the group’s forecasts. Unit costs for both Pokrovskiy and Pioneer were in line with the group’s forecasts.
Gold sales excluding those from joint ventures reached 210,000oz in the first half compared to 118,800oz in the first half of 2008 with an average realised gold sales price of $917/oz, up about 2 per cent on the previous year.
The company, which cancelled its dividend in April as full year earnings missed expectations, was also positive about future production, with its Malomir project on track for commissioning in the second half of 2010. Hambro said the jump in gold production gave the company “considerable confidence” about its growth plans for Pioneer and Malomir while the company had seen “some signs of recovery in the iron ore market”.
