Petropavlovsk Gains as Gold Output Beats Target, IRC FundsThomas Biesheuvel
Petropavlovsk Plc, a miner of gold in Russia, rose the most in four months in London trading after production exceeded its forecast and Chinese traders invested in its iron-ore business.
The shares gained 8.9 percent to 403.3 pence by the close in London, the steepest gain since Sep. 14. Gold output in 2012 rose 13 percent to 710,400 ounces, beating its 700,000-ounce guidance. The company is seeking to produce 740,000 to 780,000 ounces this year.
Gold companies are seeking to boost volumes to benefit from bullion prices that have risen for 12 straight years. Gold for immediate delivery rose 7.1 percent to $1,675 an ounce last year. The average price of the gold sold by the company was $1,670 an ounce in 2012, a 3.3 percent rise from a year earlier.
Petropavlovsk earlier said it IRC Ltd. iron-ore unit plans to sell about $238 million of new shares to two Chinese traders as it seeks to expand production and sales. Petropavlovsk will reduce its stake to 40 percent from 63 percent. General Nice Development Ltd., one of the largest importers of coking coal in China, will hold about 31 percent after the transaction while Minmetals Cheerglory Ltd. will gain about 4.5 percent.
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