Petropavlovsk to Reduce Gold Output by 16% in 2014

Petropavlovsk Plc is going to lower gold production by about 16% to 620,000-630,000 ounces compared to previously forecasted 740,000-750,000 ounces, the company said in a recent statement.
The expected decrease in production comes partially from the disposal of Berelekh assets to Susumanzoloto – the transaction was closed on 11 December, 2013. The company’s estimated cash costs in 2014 are about $950 per ounce which posts a unit cost reduction by 5% of the estimated 2013 cash costs.
“Using a conservative estimate of the quantity and quality of the new non-refractory resources the group’s production plan provides for 2015-2019 annual average production of 600,000 ounces at estimated total cash costs less than $750 per ounce. This production plan assumes no commissioning of the POX facilities during this period,” – the company’s release stated.
This anticipated step-change reduction in operating costs from 2015 is expected to be achieved due to improvement in the ore grades and decrease in stripping coefficients for the projected mining work when compared with the current mining operations.