Companies: POG   

Russian gold producer Peter Hambro Mining increased production 19 per cent to 249,000 oz last year, but profits slipped.

AIM star Peter Hambro, whose activities are primarily focused on Pokrovskiy and other mines in eastern Russia, increased turnover 34 per cent to £67.4 million in 2005, helped by a 10 per cent increase to $442 an ounce in the average selling price of its output. The gold price is now more than $620.

But the company says 'inflationary pressures on our input costs' and some of the costs involved in beefing up overall production to achieve a stated annual production target of one million oz of gold in 2009 have dented profitability. However, Peter Hambro says the programme is going well, citing as an example of the use of 'pre-washing' techniques to upgrade the resource at the Pokrovskiy 2 deposit.

Recommended by Growth Company Investor at 461p in 2004, Peter Hambro shares are 44p up today at a £15.34p high. Partial profit-taking might be prudent, though there could be more to go for.


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Peter Hambro Mining	AIM	£233.73m	288.00p	-38.00p
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Other company articles:
Peter Hambro in financing deals			26/11/2008
Output rises at Peter Hambro			21/07/2008
Exploration Insights			28/04/2008
P. Hambro sees more growth			21/04/2008
Output cheer from Peter Hambro			24/01/2008