Petropavlovsk forced to cut gold forecast again

Peter Hambro's Russian miner Petropavlovsk today reduced its gold production guidance again for the year, although it said it had overcome many of the difficulties it faced in 2010.

It expects to produce 510,000 to 530,000 ounces of gold in 2010, down from the 636,500 to 670,000 oz guidance given in August and the 670,000 to 760,000 ounces before that.

The company said it was hit by harsh weather and a delay in the delivery of mining equipment as it worked to increase production at the Pioneer mine, in Russia's eastern Amur region. It was also negatively affected by lower grades.

"The previously highlighted equipment delivery problems and the exceptional adverse weather created significant operational difficulties for the group which were beyond our control," said Hambro, Petropavlosk's chairman.