- Russia-focused gold miner Petropavlovsk downgraded its annual output guidance, blaming lower-than-expected grades and logistical issues associated with Covid-19.

The lower grades primarily from third-party material, while the Covid-19 challenges had impacted deliveries of third-party concentrates.

Petropavlovsk said the impact on profitability would be less significant, given the lower margins on third-party production processing.

Production, including processing of third-party refractory concentrates, for the year through December was now expected at between 560,000 and 600,000 ounces, down from previous guidance of 620,000 to 720,000 ounces.

The company said it also had decided to delay full commissioning of its Pioneer flotation plant from the fourth quarter of 2020 until the second quarter of 2021.

'This reflects delays to the commissioning of some equipment items and a desire to avoid full commissioning during the winter months,' it said.

'During this period we will continue to process stockpiles of lower grade non-refractory ore at the Pioneer RIP plant.'

At 1:23pm: [LON:POG] Petropavlovsk PLC share price was -0.82p at 31.88p

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