London-listed gold miner Petropavlovsk saw its shares jump eight per cent this morning after the company reported a large increase in sales.
In total, the firm said its gold sales had increased 39 per cent in the year ending December 2019, from 369,000 ounces to 514,000 ounces.
The firm, which has operations in Russia, attributed this to the contribution from the pox hub processing refractory in the country’s far east, which was not in production the year before.
Fourth quarter production alone rose 90 per cent, from 85,400 ounces to 162,600 ounces in the final months of the year.
Chief executive Pavel Maslovskiy said: “All operations, including open-pit and underground mines, performed well and either met or exceeded expectations despite the extreme weather events last summer that caused multiple floods in the region.”
For 2020, Petropavlovsk expects to “significantly increase” production to between 620,000 ounces from 720,000 ounces.
The update comes after Petropavlovsk swung back into profit in September last year after a bruising boardroom battle.
The opening of the new processing plant, one of only two pressure-oxidisation hubs in Russia, means that Petropavlovsk has started taking on ores from third-party producers.
The development represents a considerable turnaround in the miner’s fortunes after a long-running dispute over the board’s makeup.
Co-founder Peter Hambro joined the board again just over a year ago after being forced out in a shareholder revolt. Maslovskiy also resigned amid the controversy, but returned to the company last year.
Shares rose over 11 per cent on the back of the report.