Russia’s Petropavlovsk seeks export license amid struggle to sell gold
April 22 (Reuters) – Russian gold miner Petropavlovsk (POG.L) said on Friday it had applied for a new export license as the company struggles to sell its gold to sanctioned lender Gazprombank ( GZPRI.MM), the sole buyer of the entire gold production of the mining group.
The sanctions imposed on several Russian companies prohibit any financial transactions with these companies and Petropavlovsk is even prevented from repaying its debt to Gazprombank, also its main lender.
These restrictions put the London-listed miner, which has not been targeted by sanctions, in a difficult position as it has extensive commercial and financial relations with Gazprombank.
Petropavlovsk said it was continuing to explore options to sell its gold, including with other potential buyers, even as it cut its full-year outlook for total gold production, hurt by supply chain disruptions. supply of third-party concentrate production.
The company said it now expects total annual gold production in the range of 375 kilo ounces (koz) to 405 koz, down from a previous outlook of 380 to 420 koz.
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Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sherry Jacob-Phillips
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