Companies: POG   

Peter Hambro Mining says it beat its own forecasts by increasing gold production 14 per cent to 297,000 oz last year.

Focused on Far Eastern Russia, the AIM-quoted company, whose Pokrovskiy Rudnik arm is thought to have won a significant new licence tender this week, realised an average gold selling price of $668 (£334) an ounce during 2007, up from $586 the previous year. Despite moving into more difficult ore, Peter Hambro maintained gold recovery rates at around 90 per cent, thanks to adopting advanced technology, while output from the company’s new alluvial gold assets increased 57 per cent.

Peter Hambro, which has made ex-British armed forces chief Lord Guthrie a non-executive director, last year raised $180 million through issuing seven per cent ‘gold equivalent exchangeable bonds’, due 2012, to expand its Malomir deposit and other assets. Floated five years ago at 130p, the shares were AIM stars, reaching £17.10 in 2006, before more recent wavering.

At £13.28, up 67p today and valuing the company at £1.1 billion, they should outperform several sector peers.

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Peter Hambro Mining	AIM	£242.65m	299.00p	11.00p
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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