OREANDA-NEWS. August 25, 2011. Today (25 Aug) Petropavlovsk released its 1H11 IFRS results which came in expectedly strong. Revenue grew 140% YoY to USD 475mn, ahead of our and market expectations. EBITDA grew more than five times YoY to USD 186mn – this was 8% below our expectations but beat market consensus by 6%. The company posted net income of USD 108mn, which was 11% below our forecast but exceeded market consensus by 38%. Petropavlovsk remains firmly on track to reach its target of 600koz of gold in 2011.

Bottom line

We view the results as positive despite the fact that they were slightly below our estimates as they beat market consensus. We believe these strong figures should boost investor confidence in the company, which was seriously impaired in recent months.