Russian gold miner Petropavlovsk said on Friday it has applied for a new export licence as the company struggles to sell its gold to sanctions-hit lender Gazprombank, the only buyer of the mining group's entire gold output.
The sanctions imposed on several Russian companies prohibit any financial dealings with such firms and Petropavlovsk is even restricted from making debt repayment to Gazprombank, also its main lender.
The restrictions put the London-listed miner, which has not been targeted by sanctions, in a difficult position as it has an extensive commercial and financial relationship with Gazprombank.
Petropavlovsk said it continues to explore options for sale of its gold, including with other potential buyers, even as it cut its annual total gold production outlook, hurt by supply chain disruptions to output from third-party concentrate.
The company said it now expects an annual total gold production in the range of 375 000 oz to 405 000 oz, down from a previous outlook of 380 000 oz to 420 000 oz.