Petropavlovsk has embarked on an ambitious programme to strengthen leadership and controls across the group aimed at reducing costs and improving returns to stakeholders.
Group highlights:
1. Long-life asset base: Petropavlovsk has a long-life asset base with a history of resource & reserve replacement. The group’s average mine life is more than 16 years. The group’s 18 gold licences cover an area of more than 3,200km² which are considered to be highly prospective by its geologists.
2. Refractory gold processing capabilities: The company has invested in pressure oxidation technology to unlock the value of its extensive refractory gold reserves and resources and commissioned its Pressure Oxidation Hub (“POX Hub”) in late 2018. The POX Hub is one of only two in Russia and can treat a variety of complex refractory concentrates, both from Petropavlovsk’s own mines and third parties, which opens a range of development and growth opportunities from within the group’s existing asset base or externally.
3. Technical expertise: One of our biggest strengths is our capacity for in-house research and development. The company’s world-class institutes, including Irgiredmet and NIC Gydrometallurgia are responsible for the innovative design of its processing plants and continuous improvement of its processing capabilities.
4. Deleveraging & reducing the cost of debt: The company’s Net debt / EBITDA was 1.4x as at 31 December 2020, and the board has set deleveraging and reducing the cost of debt as a management priority to both strengthen the company’s balance sheet and improve cash returns to shareholders.
5. Business transformation: Under the leadership of a new CEO and senior management team, the board intends to simplify the group’s complex corporate structure and improve internal controls, operational policies and processes with the aim of delivering greater business transparency, operational efficiency and future growth for the benefit of all stakeholders.
6. Sustainability principles: Sustainable development is integral to the company’s overall business strategy. The group is committed to operating responsibly and is taking important steps to improve all areas of sustainability. Our environmental management system is ISO certified and our goal is to create a “zero-harm” workplace.
The POX Hub
Significant assets
Experienced and diverse management and technical expertise
Net debt / EBITDA of 1.4x at end of 2020
Diverse and experienced board
Ongoing commitment to effectively manage, reduce and mitigate any environmental impacts from our operations
