Petropavlovsk Rises in London Trading on Gold Output, Costs

Petropavlovsk Plc (POG) climbed the most in more than seven weeks in London trading after the operator of Russian gold mines said production of the precious metal expanded by 60 percent and costs declined.

Petropavlovsk jumped 4.6 percent to 524.5 pence by the close in the city, the biggest advance since Feb. 21. The company’s gold production in the first quarter was 120,800 ounces, compared with 75,400 in the same period a year earlier, London-based Petropavlovsk said today in a statement.

The mining company said cash costs per ounce mined fell to $587 from $633 a year earlier. Petropavlovsk reiterated its full-year output target of 680,000 ounces.

Gold companies are seeking to boost production to benefit from bullion prices that have risen for 11 straight years. Gold for immediate delivery averaged $1,691 an ounce in the first three months of 2012, compared with $1,388 a year earlier.

To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.