Hambro shares rise after Russian gold row resolved

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The Independent Online

Russia's third-largest gold producer yesterday provided some reassurance to investors made skittish by a nasty brush with the authorities in Moscow.

Peter Hambro Mining said total attributable gold production in 2006 beat its expectations by rising 5 per cent to 262,000 ounces.

The company also said recovery rates remained stable thanks to technological improvements and that the average realised gold sales price of $586 per ounce was a third higher than in 2000.

Peter Hambro, the eponymous chairman, also sought to reassure the market by reiterating that the problems with the company's Russian mining licences had been resolved.

The company's shares tumbled in December after a spat with the country's environmental agency which had shareholders on tenterhooks and wiped £300m from Hambro's market value. Mr Hambro had to fly to Moscow for a face-to-face meeting with Oleg Mitvol, deputy head of the country's environmental watchdog.

It coincided with Shell's troubles with the Sakhalin oilfield, which resulted in the sale of a majority stake to Russia's state-owned Gazprom.

Hambro's shares have recovered since the issue was resolved and yesterday's upbeat figures helped the company to add a further 60p to £10.30.

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