- Russia-focused gold miner Petropavlovsk forecast a fall in annual production and said it was undertaking a sweeping review of its business to cut costs.

Output for the year through December 2021 was expected to fall to between 430,000 and 470,000 ounces, down from the 548,100 ounces produced in 2021.

Petropavlovsk, which recently underwent a board and management shakeup, said a review of the business, its corporate structure, internal controls, operational policies and processes was under way.

Examples of cost-saving measures would include the 'streamlining' of administrative personnel, reduction of duplicated functions, removal of intermediaries and the cancellation of contracts with certain counterparties.

'The review has already resulted in immediate cost savings through revised procurement and contracting procedures,' Petropavlovsk said.

A new medium-term corporate development strategy would be delivered by the third quarter of 2021 and followed by the proposal of a dividend policy.

A full management restructuring would be completed by the second quarter of 2021.

Petropavlovsk also guided for total annual capex of $140 million, consisting of sustaining and development capex of $120 million and exploration spend of around $20 million.

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