JOHANNESBURG (miningweekly.com) – Russia-focused gold miner Petropavlovsk’s gold production increased by 19% year-on-year to 232 400 oz in the six months ended June 30.

The increase is supportive of the miner’s aim to produce between 420 000 oz and 460 000 oz for the full year. 

The miner also posted a decline in net debt, which fell 5% to $570-million from $599-million at December 31, 2016.

"The increase in production in the first half was due to operational efficiencies. The operations are currently progressing in line with the company's plan," nonexecutive chairperson Ian Ashby said in a statement on Tuesday.

He added that the range in the production forecast for the full year reflected the company's conservative approach to the development of underground mines at Pioneer and Malomir.

The company said sales volumes in the first half amounted to 231 800 oz, 19% higher than the 195 400 oz sold in the prior comparable period.

The average realised gold price in the period was also up 5% from the prior year at $1 255/oz, compared with $1 194/oz.

Of the Russia-based miner's four operations, the Pioneer, Malomir and Albyn mines all achieved a lift in output in the first half of the year, compared with the prior year; however, the Pokrovskiy mine reported a year-on-year decline in output.

At the end of June, Petropavlovsk had hedging contracts in place for 500 000 oz of gold at an average price of $1 252/oz.

The main sources of low-grade ore were pits of the Alexandra, Yuzhnaya and Promezhutachnaya zones. This ore was blended with lower-grade material from stockpiles.

The development of the North East Bakhmut underground mine progressed as planned.

Underground work during the half-year totalled 1 446 m³ and the first ore was mined in June.

The significant increase in doré gold production in relation to gold recovered is mainly owing to the successful implementation of measures for cleaning resin and the resulting reduction in gold in circuit.

The interim results are to be released in the week starting on September 11.