Gold market in Russia

Gold Market in Russia 

Pogosyan Tatev

Danilenko Anna

IFF 3-3

Content 

1. Russian mineral reserve and mining statistics
2. Russian Gold production
3. Gold mining regions in Russia
4. Main gold producers.

In 1992, Russia produced 4.7 million ounces of gold.

The country has since increased gold production by 38% to 6.5 million ounces of gold last year.

Russian gold production is expected to slightly increase to 6.6 million ounces of gold. 

As production began to come under private control in the mid- to late-1990s, gold prices were sitting at the bottom of a 20-year bear market.

As a result, investment in Russia's gold industry quickly dried up, and production eventually fell. 

Krasnoyarsk is the top gold producing territory in Russia, supplying about 20% of domestic gold production.

Petropavlovsk (LSE: POG) 

It is a mid-tier gold producer focused on the development of low-cost gold mining assets in Russia.

In 2009, Petropavlovsk produced 487,000 ounces of gold at a total cash cost of $309 an ounce, making it one of the world's lowest-cost mid-tier gold producers.

This year, the company expects to increase production by 38% to 670,000 ounces of gold, making Petropavlovsk the third-largest gold mining company in Russia.

Shares of Petropavlovsk trade on the London Stock Exchange, the main German exchanges, and the company has an ADR program with the Bank of New York.

Polyus Gold (OTCBB: OPYGY) 

It is an international mining company that is the largest gold producer in both Russia and Kazakhstan.

Headquartered in Moscow, Polyus Gold’s operating mines and development projects are located in five major gold mining regions of Russia: the Republic of Sakha, the Irkutsk, Magadan, Amur regions, and the Krasnoyarsk Territory.

During the first half of 2010, the company produced 503,000 ounces of gold.

Polyus Gold is aiming to become one of the top five largest gold production companies in the world.

Polyus Gold trades on Russia's stock exchanges and in the U.S. and U.K. under ADR programs. 

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