Gold miner Petropavlovsk turns first profit since 2012

Russia-based gold miner Petropavlovsk has posted its first profit since 2012, as it looks to move on from a torrid few years.

Petropavlovsk reported a pre-tax profit of $4.8 million in the six months to June, against a loss of $26 million for the same period a year ago. Revenue slipped 14.5 percent to $254 million as gold production fell after poor weather in the Amur region of Russia where it mines.

The company nearly went bust in 2015 but now expects to close a refinancing deal with its creditors next month that will extend its debt repayment schedule to 2022. Petropavlovsk borrowed heavily this decade to fund expansion, only to be hit by a downturn in gold prices. In the first half of the year it slashed $12.4 million from its debt pile, bringing it down to $598 million.

Chairman Peter Hambro, a City veteran, said: "It's been a long struggle, but even a small profit is better than what we had in the past." ...

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