Petropavlovsk maintains 2012 final dividend

DividendMax Ltd.

Petropavlovsk maintains 2012 final dividend

2012 Results

Total attributable gold production of 710,400oz, up 13% year-on-year and exceeding the target of 700,000oz;

Total gold sales of 703,200oz up 4% year-on-year;

Average realised gold price increased by 3%;

Group revenue of c.US$1.4 billion - a c.9% increase on 2011;

Unit costs per cubic metre of material moved and per tonne processed for 2012 were essentially unchanged across the Group;

EBITDA US$487.7 million (US$597.1 million in 2011);

Development and maintenance capital expenditure for the precious metals operations of US$408.2 million;

EPS before exceptional items was US$0.54 (US$1.23 in 2011);

Net debt at Period-end of US$1,063.3 million is in line with H1 2012 (US$1,056.1 million excluding IRC Limited, ("IRC")) compared to US$787.3 million as at 31 December 2011;

Cash and cash equivalents at Period-end of US$159.2 million;

At Period-end the Group had committed but undrawn loan facilities of US$153.2 million (excluding IRC);

Exceptional items in the Period of $336.4m largely reflecting the write-down of IRC to fair value and other impairment charges; and

Loss per share after exceptional items of US$0.85 (profit per share in 2011 of US$1.24).

2013 Outlook

The Group's gold production target for 2013 is 760,000oz to 780,000oz, up 7% to 10% on 2012 production;

Hedging arrangements undertaken in February 2013 in relation to c.400,000oz of gold guarantee a minimum revenue stream of c.US$664 million for the period ending March 2014;

Group gold production for the first two months of 2013 in line with budget;

The Group expects 2013 unit cash costs for all hard rock operations to remain approximately in line with 2012 levels;

Development and maintenance capital expenditure for 2013 US$369 million;

At a US$1,600/oz gold price, the Group expects net debt (excluding IRC ) for 2013 to remain broadly in line with the net debt position at the end of 2012 but decrease in 2014 in line with projected decrease in capital expenditure;

Potential US$238 million investment in IRC by new shareholders announced in January 2013, IRC now treated as held-for-sale and expected to become an associate in 2013; and

Final dividend of £0.07 per share proposed, comprising a £0.02 per share cash dividend and a £0.05 per share scrip dividend.

Companies mentioned