Petropavlovsk Posts US$742mn H113 Net Loss
News: Russian gold producer Petropavlovsk has posted a H113 net loss of RUB24.7bn (US$742mn) following the implementation of a RUB20bn (U$600mn) impairment charge, Mineweb reports. The loss, which compares to a RUB365.9mn (US$11mn) profit in H112, has been attributed to a fall in commodity prices. Despite the loss, the company stated that it was on target to meet its 2013 gold production target of 760,000 to 780,000 ounces.
BMI View: We forecast Russia's mining industry value to reach US$157bn by 2017, growing at an annual average rate of 0.9%. We believe the country's mining industry will experience years of slowing growth as palladium and platinum production undergo modest increases over the coming years. Nevertheless, the coal sector holds much promise over the long term as the government plans to invest RUB3.7trn (US$120bn) in the sector between 2012 and 2030.