Shares in Peter Hambro Mining (AIM:POG) continued their recent form, climbing 12% in early deals after the company released a trading update for the 12 months to 31 December 2008.
The mid-tier gold producer announced that total attributable gold production increased by 36% to 393,600 ounces, which was at the upper range of management guidance of 350,000-400,000 ounces.
Peter Hambro achieved an average realised gold price of US$845/ounce in 2008, up 26% compared to 2007. However, the company did also note that recent weakening in the Russian Rouble against the US dollar had an impact on its foreign exchange losses and had applied inflationary pressure on fuel, reagents and consumables.
Looking ahead, the company forecasts 2009 gold production of 460,000 ounces and 500,000 ounces of gold, suggesting an increase in production of at least 17%.
Peter Hambro, Executive Chairman, said:
"I am very pleased to report the 36% increase in annual attributable gold production which we achieved in 2008. Yet again the company has met its production target. The Pokrovskiy mine production again exceeded the target with a 13% increase in gold production for 2008. Pioneer's development went well, ramping up production to produce 52,000 oz of gold in the last quarter of 2008. Alluvial production in 2008 was up by a third."
"Pioneer's production facility is at the second stage of development and is scheduled to commence production in the second half of 2009. Malomir is still on track to achieve commissioning of the plant's first line in the second half of 2010. Successful realisation of the group's 2008 expansion plans instills confidence in the group's 2009 production target of 460,000 to 510,000 oz."