Company Information for Peter Hambro Mining Plc

AIM-POG

www.peterhambro.com

Hear audio

Company stock charts - 12 Month chart

AIM; POG

View full financial data

Company Statement

Peter Hambro Mining Plc ranks amongst the top gold producers in Russia with significant assets in a number of regions of the Russian Federation. The Group is also engaged in the acquisition and exploration for prospective gold properties in some of Russia’s leading gold districts. The Group is dedicated to creating value for shareholders by:

Developing reserves
Strengthening the Group's asset base
Increasing earnings per share
Consolidating the Group's financial strength
Controlling production costs

The core assets of the Group are located in the Amur region, Russian Far East with an operating Joint Venture in the Magadan region and two deposits at an advanced stage of development and other exploration assets in the Urals.

The Group was founded in 1994; Peter Hambro Mining Plc's shares have been traded on London’s Alternative Investment Market (AIM) since 2002. In addition to the London Stock Exchange, Peter Hambro Mining Plc has an ADR programme with the Bank of New York. The Group has offices in London, Moscow and Blagoveschensk (Amur region).

Current Operations

Operations:
The current production of Peter Hambro Mining Plc comes mainly from its two operating assets, OJSC Pokrovskiy Rudnik and the Omchak Joint Venture. The first gold was produced from the Pioneer deposit at the end of 2004 when ore from the trial pit was taken to the Pokrovskiy resin-in-pulp plant to be processed.

Since its inception in 2002 the resin-in-pulp plant at Pokrovskiy has undergone a twofold increase in capacity. Further expansion to increase the mill’s capacity to 1.9 million tonnes of ore per year was commenced in 2004 and was finalised in 2006. The mining fleet has already been expanded accordingly in order to meet the increased demand for ore to be processed through the mill.

The Omchak Joint Venture contributes to the Group's gold production through its two operating assets: Shkolnoye underground mine and Berelekh alluvial operations.

The Group's total attributable gold production was c.297,000 ounces in 2007.

In 2004 the Group reorganised the structure of its Russian operations and formed a new company in Russia, "Management Company Peter Hambro Mining" in order to increase operational efficiency.

Exploration:
The Group is one of the largest explorers in Russia combining both a world class portfolio of mineral assets with an excellent geological exploration team. In 2004 the Group completed the construction of three new laboratories providing one of the largest laboratory capacities in Russia, and in 2006 the further expansion of the Group's laboratory facilities and the c.98% acquisition of Irgiredmet Research and Scientific consulting company, based in Irkustsk, meant that our in-house technical capability was able to keep up with the growing pace of demands on our exploration and development efforts.

In 2006 there was an intensive exploration programme on Pioneer, Malomir and Petropavlovskoye deposits (Yamal) in particular. There was more than twice as much deep drilling and trenching during the year, compared with corresponding figures for 2005. The major increase in laboratory capacity during 2005 meant that at the same time the assaying backlog was almost cleared.

Under the leadership of Nikolai Vlasov the Group’s team of exploration scientists and engineers are working on an extensive range of projects intended to further expand the Group's reserves and resources.

Reserves and resources are quoted by the Group according to the Russian reserves and resources classification system. Although there have been various opinions on this practice, it is logical and reasonable since the exploration areas and operations are in Russia and are subject to the Russian mining regulations. Recognising that there is a need to express reserves and resources in terms which are more familiar internationally (such as JORC), the Company supports an initiative by CRIRSCO (the "umbrella" committee which co-ordinates the work of the various national and regional reserves reporting bodies such as JORC in Australasia, Pan-European Reserves and Resources Committee (PERC) in UK/Europe and conterparts in North America and elsewhere). CRIRSCO has set up a working group to develop a rational method of conversion between Russian and international standards. This has the active participation of the Russian State Committee on Reserves (GKZ). The Group is represented on this committee by its Chief Geologist, Dr Nikolai Vlasov.

The Group's reserves and resources estimates have been reviewed by Dr Stephen Henley, who is an independent geological advisor to the Board of Directors of Peter Hambro Mining Plc. Dr Henley is qualified to act in the capacity of a Competent Person for the purposes of reserves and resources reporting.

Geographical Spread

The Group’s operations are all located in Russia, concentrated in the Amur region, Russian Far East. Omchak is located in the Magadan region and OJSC Yamalzoloto in the northern Urals, in the Yamal-Nenetsk Autonomous District. The Group’s head office is in London

Board of Directors and Key Management

Peter Hambro	Executive Chairman
Dr Pavel Maslovsky	Chief Operating Officer
Alexei Maslovsky	Business Development Director
Andrey Maruta	Finance Director
Alya Samokhvalova	Director of External Communications

Non-Executive Directors
Lord Guthrie
Jay Hambro
Philip Leatham
Sir Rudolph Agnew
Peter Hill-Wood

Company Address

11, Grosvenor Place
London, United Kingdom SW1X 7HH


Telephone:	44 (0) 20 7201 8900
Facsimile:	+44 (0) 20 7201 8901
Email:	corporate[at]peterhambro.com
Website:	http://www.peterhambro.com

Additional Address/Key Contact

Investor Relations contact
Director of External Communications - Alya Samokhvalova

Phone: +44 (0)20 7201 8900
Fax: +44 (0)20 7201 8901
E-mail: as@peterhambro.com

Annual General Meeting

25 June

Year End

31 December

Nominated Brokers

JP Morgan Cazenove

Nominated Advisors