Petropavlovsk plc
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| Type | Public (LSE: POG) |
|---|---|
| Industry | Mining, metallurgy |
| Founded | 1994 |
| Headquarters | Listed in London, England. Operates in Russia |
| Key people |
Mr Peter Hambro (Chairman of the board) Senator Pavel Maslovskiy (Honorary President) Mr Sergey Ermolenko (CEO) Mr Martin Smith (Deputy CEO) |
| Products | Gold |
| Revenue | US $612.0 million (2010)[1] |
| Operating income | US $118.3 million (2010)[1] |
| Profit | US $23.0 million (2010)[1] |
| Employees | 11,789 (2010)[1] |
| Subsidiaries | IRC Limited |
| Website | www. petropavlovsk.net |
Petropavlovsk plc (LSE: POG) (formerly Peter Hambro Mining plc) is a London-based gold mining company with operations in Russia. Its shares are listed on the London Stock Exchange and are constituents of the FTSE 250 Index.
Contents |
[edit] History
The Group was founded by Peter Hambro and Pavel Maslovskiy in 1994 as an Anglo-Russian venture to develop a highly-prospective, under-developed gold project in the Amur region, Russian Far East. Since then, Petropavlovsk has grown from strength-to-strength and is now a major multi-mine Russian gold producer.[2]
In 2002, the Company was first listed on the Alternative Investment Market.[2] Peter Hambro Mining fully acquired Aricom, a business formed by Peter Hambro and Pavel Maslovskiy and operating in the Amur Region, in April 2009.[3] It was also first fully listed on the London Stock Exchange in April 2009.[2]
In September 2009, the company changed its name from Peter Hambro Mining plc to Petropavlovsk plc, retaining the POG stock exchange code, in order to reinforce its Russian focus.[4]
In October 2010, the group floated its non-precious metals division (the assets previously held by Aricom plc) on the Stock Exchange of Hong Kong as IRC Ltd (Stock Exchange Code: HK1029). The group has retained a 65.6% stake in IRC.[5]
[edit] Operations
The group is one of the largest gold producers in Russia and has been one of the fastest growing gold producers listed on the London Stock Exchange, enjoying an annual year-on-year increase in gold production since it first listed in 2002.[6]
The Group produced 506,800oz of gold in 2010 and generated US$612 million in revenue.
[edit] Mines
The Group’s principal assets are four hard-rock gold mines in the Amur region, Russian Far East.[7] All four mines are open pit and gold is processed on-site utilising conventional resin-in-pulp (“RIP”) processing plants and/or heap-leaching operations.
Acquired as either greenfield or early-stage exploration sites, the mines were developed and commissioned in-house by the Group, utilising its specialist exploration, engineering and construction teams and its research and development centres and laboratories.[8]
As the group’s mining assets are all located in Russia, the group’s operations are run in accordance with Russian labour, environmental, health and safety laws. As a consequence, the group has a good environmental management and safety track record compared to some of its peers in the mining sector. In order to provide greater transparency to its international shareholders and stakeholders, the Group in recent years has sought to align its policies and procedures with international best practice.[9]
[edit] Pioneer
Producing 230,900oz if gold in 2010, Pioneer is the Group’s largest mine and one of the largest gold mines in the Russian Far East.
The Group acquired a licence to explore, develop and mine the Pioneer deposit in 2001. The mine was commissioned in April 2008 with the installation of a 0.7Mtpa milling line. Since then, the plant has undergone further expansion to reach the current capacity of 5.0Mtpa.
The mine still remains highly prospective as new licence areas surrounding the original mine site are still being explored.
[edit] Pokrovskiy
Pokrovskiy is an open-pit gold mine located in the western part of the Amur region, approximately 10 km from the nearest station on the Trans-Siberian railway and 35 km from Pioneer. Producing 144,900oz in 2010, it is one of the largest producing gold mines in the Amur region in terms of annual production.
The Group acquired the licence to explore, develop and mine the Pokrovskiy deposit in 1994, when it was still at a very early stage of development. The mine became operational five years later in 1999 when heap-leaching facilities were added. The RIP processing plant was commissioned in 2002 and subsequently expanded to its current capacity of 1.7Mtpa in 2004.
To date, the Pokrovskiy mine has produced over 1.6Moz of gold.
The mine will be the site of the Group’s pressure oxidation (“POX”) processing hub, which will propel the Group into a new growth phase.
[edit] Malomir
Acquired in 2003 as a greenfield site, Malomir was commissioned on target in 2010 and the plant was expanded in July 2010, despite the project’s remote location in the north-east Amur region.
Malomir is the Group’s first large-scale mine located in the north-east of the Amur region. The Group anticipates that it will become the first building block in a cluster of assets located in close proximity to each other, which will be developed using the synergies between these projects.
[edit] Albyn
The Albyn licence area was acquired in 2005 as a greenfield site. Commissioned on target in November 2011, Albyn remains one of the Group’s most prospective projects, with exploration continuing to yield positive results.
[edit] Alluvial operations
In addition, to its hard rock assets, the Group operates several alluvial operations, where sands are dredged for “loose” gold, which is extracted using non-chemical gravity processes.
[edit] Exploration, reserves and resources
The group's gold reserves stand at 9.4Moz and gold resources at 24.4Moz (in accordance with the JORC Code (2004)).[10]
The group’s exploration activities are focused on areas adjacent to its existing mines and around new growth clusters.[11]
[edit] Transition to refractory ore processing
The group is constructing a pressure oxidation processing "hub" at its Pokrovskiy mine, the group’s historical home in the Russian Far East, which will process flotation concentrate from the Pioneer and Malomir mines.
Long-term, the group’s management believes that the hub may give it a strong competitive advantage in the Russian Far East as it will be able to process other types of refractory ores from a variety of types of gold deposit.[12]
[edit] Charitable work
During 2010, the Group worked in collaboration with local authorities to launch the Petropavlovsk Foundation for Social Investment (“the Foundation”) to centralise the Group’s existing charitable work into one investment vehicle.
The aim of the Foundation is to contribute to the social and economic development of the regions affected by the Group’s business. In doing so, the Foundation supports the Group's commitment to sustainable development, as outlined in the Group’s policies, strategies and practices, to centralise the Group’s sustainable development programme, to promote the development of Far East Russia and to contribute to the development of positive relations with federal and local authorities and the communities affected by the Group’s operations.
The Foundation’s targeted activities include: improving the quality of life of children (including investment in education), the provision of funds for facilities for the elderly, the provision of funds for hospitals and other medical facilities, the development of ecological programmes and investment in cultural and sports activities and programmes, such as local museums, libraries and churches. The Foundation is also involved in arts, crafts and film events in the region.
Charitable donations across the Petropavlovsk Group totalled US$2.5 million in 2010.[13]
[edit] Board of Directors
[edit] Executive Directors
Peter Hambro - Chairman and Co-Founder
Sergei Ermolenko - Chief Executive Officer and founding member of the Group's management team
Martin Smith - Deputy Chief Executive Officer
Brian Egan - Chief Financial Officer
Andrey Maruta - Finance Director, Russia
Dr Alfiya (Alya) Samokhvalova - Strategic Director
[edit] Non-Executive Directors
Dr Graham Birch
Lord Guthrie of Craigiebank GCB LVO OBE DL
Sir Malcolm Field
Charles McVeigh
Dr David Humphreys
[edit] References
- ^ a b c d "Annual Report 2010". Petropavlovsk plc. http://www.petropavlovsk.net/images/stories/Reports2011/2010_financial_statements.pdf. Retrieved 2011-04-25.
- ^ a b c Peter Hambro Mining: History
- ^ Crust, Julie (22 April 2009). "Peter Hambro moves to LSE main market". Reuters. http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLL23741820090422. Retrieved 2009-04-23.
- ^ Metal Bulletin
- ^ "Mineweb.com - The world's premier mining and mining investment website Petropavlovsk plans non-precious metals IPO for Oct - FAST NEWS". http://www.mineweb.net/mineweb/view/mineweb/en/page504?oid=111063&sn=Detail&pid=37. Retrieved 2010-09-13.
- ^ Company press releases
- ^ www.petropavlovsk.net
- ^ Company reports and press releases, available on www.petropavlovsk.net
- ^ Petropavlovsk 2010 Sustainability Report
- ^ Petropavlovsk PLC Half-year report for the period ended 30 June 2011
- ^ Company presentations
- ^ Presentations 2011
- ^ Petropavlovsk PLC 2010 Sustainability Report
