|Type||Public (LSE: POG)|
|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)
|Revenue||US $1,375.2 million (2012)|
|Operating income||US $227.0 million (2012)|
|Profit||US $243.9 million (2012)|
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. The group has come under significant controversy from NGO's and human rights groups however, for contracting North Korean forced labourers as well as over-logging.
In 2002, the Company was first listed on the Alternative Investment Market. Peter Hambro Mining fully acquired Aricom, a business formed by Peter Hambro and Pavel Maslovskiy and operating in the Amur Region, in April 2009. It was also first fully listed on the London Stock Exchange in April 2009.
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.
In October 2010, the company 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.
The Group’s principal assets are four hard-rock gold mines in the Amur region, Russian Far East. 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. 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.
Producing 230,900oz of 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.
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. The company chose to hedge nearly half of its gold production from this mine in 2013 so guaranteeing the company a minimum revenue stream.
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.
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.
Exploration, reserves and resources
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. Charitable donations across the Petropavlovsk Group totalled US$2.5 million in 2010.
- "Preliminary Results 2012". Petropavlovsk plc. Retrieved 29 March 2013.
- Peter Hambro Mining: History
- "N Koreans toiling in Russia's timber camps". BBC News. 2009-08-26.
- Crust, Julie (22 April 2009). "Peter Hambro moves to LSE main market". Reuters. Retrieved 2009-04-23.
- Metal Bulletin
- "Petropavlovsk plans non-precious metals IPO for Oct". Mineweb. Retrieved 2010-09-13.
- Petropavlovsk 2010 Sustainability Report
- Pioneer mine drives Petropavlovsk Investors Chronicle, 9 September 2011
- Petropavlovsk hedges gold production Mining Journal, 18 February 2013
- Rusu Photography
- Gold miner Petropavlovsk lifts production target, while WH Smith sees sales improvement The Guardian
- Petropavlovsk PLC Half-year report for the period ended 30 June 2011