Shares in Petropavlovsk soared almost 28 per cent yesterday, after the Russian gold miner reassured the market that it was on track to deliver its full-year production target.
“Petropavlovsk notes the recent weakness in the company’s share price and advises the group is performing operationally in accordance with its strategic plan and budget and maintains its guidance for 2014 total production of 625,000oz of gold,” said the London-listed company.
It also said it was keen to make contact with holders of its four per cent convertible bonds due 2015, suggesting it was looking to buy back the debt offering.
Shares closed 27.8 per cent higher at 42.5p per share, valuing the company at £83.5m.
By the end of last week, its shares had fallen 60 per cent compared to late April, when the company unveiled its annual results.
The miner posted a full-year loss of $713m (£423.3m), slashed its dividend and said it had not yet secured crucial refinancing agreements.
The 2013 result compared to a $244m loss in 2012 and was largely due to impairments and write-downs from the 28 per cent fall in the gold price.
The company reduced its debt by $115m in 2013 and plans to achieve a similar debt reduction to lower its debt to below $850m by the end of 2014.