Peter Hambro on schedule for one million ounce gold target

Peter Hambro Mining, one of the largest gold producers and explorers in Russia, expects its 2007 gold production to reach its target figure of 283,000 ounces.

The company’s total attributable production increased 24% in the first half of 2007, to 134,300 ounces.

This is in line with forecasts made in April that total attributable production would increase by 8.4%, to around 283,000 ounces in 2007.

However, the group has also issued warnings that rising costs may increase operating expenses during the remainder of the year.

Work on the development of the group’s Pioneer deposit is on schedule and the mine is expected to yield its first production in September.

In the first six months of the year, production at Peter Hambro’s Pokrovsky mine rose to 116,800 ounces, representing a 25% increase year-on-year.

Output at its Omchak joint venture rose 32.3% year-on-year, to 23,000 ounces of gold; Peter Hambro’s attributable share was 11,400 ounces.

With regard to the company’s other newly developing operations, production increased 88% in the six months to the end of June, to 6,200 ounces.

The group, which is one of the lowest cost gold miners in Russia, still plans to produce one million ounces of gold a year by the end of 2009.