Petropavlovsk Tumbles to 11-Week Low After Reporting Slumping Gold Output

Petropavlovsk Plc, Russia’s third- lmobile crusher 50 thousand tons per hourargest gold producer, slumped to an 11-week low in London after saying second-quarter output of the metal fell 16 percent and full-year production will be at the “bottom end” of its plans.

Petropavlovsk declined as much as 6.2 percent to the lowest since May 7 after second-quarter attributable production slid to 100,700 ounces, from 120,000 ounces a year earlier. Output was hampered by delayed equipment deliveries and “extreme” cold in the Amur region of Russia’s Far East, it said in a statement. “The disappointing performance of the gold mines in the first half and lowering of expectations, while within the forecast range, is not good news,” John Meyer, head of research at Fairfax IS in London, wrote in a research note today. Petropavlovsk fell 3.1 percent to 1,063 pence by 9:02 a.m. in London after touching 1,029 pence.