Sept. 24 (Bloomberg) -- Peter Hambro Mining Plc, the second- biggest miner of gold in Russia, almost doubled first-half profit as prices and production increased. The shares rallied to the highest since February.
Net income rose to $21.4 million, or 26.5 cents a share, from $11.6 million, or 14.4 cents, a year earlier, London-based Peter Hambro said today. Sales climbed 58 percent to $93.1 million. Production from the Pioneer project, the company's biggest gold deposit, started today, Chairman Peter Hambro said by phone from London.
``We're still confident in our 1 million-ounce target'' for total annual gold production by 2010, compared with 283,000 ounces this year, he said.
Gold has advanced for six consecutive years in London, its best run since at least the 1940s, and reached a 27-year high last week. The metal is seen by some investors as a hedge against inflation and further declines in the dollar, which slipped to a record low against the euro today.
Shares of Peter Hambro rose 57 pence, or 4.9 percent, to 1,217 pence in London, the highest closing price since Feb. 26. Peter Hambro has a market value of 987.7 million pounds ($2 billion).
Gold averaged $658 an ounce in the first six months of this year, 12 percent higher than a year earlier. The metal will probably exceed its record of $850 an ounce by the end of this year, Hambro said in the interview.
`Flight From Paper'
``People are buying large quantities'' of bullion in China and India, he said. ``We're seeing a flight from paper promises.''
The company's production grew 24 percent to 134,300 ounces in the first half, with the Pokrovskiy mine contributing 116,800 ounces. Hambro declined to give a forecast for Pioneer's output.
``They say they're on target for Pioneer, so it looks good,'' said Tim Dudley, an analyst at Arbuthnot Securities Ltd. in London. ``I would have liked to see a bit more detail.''
OAO Polyus Gold was Russia's largest producer last year.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment