Wednesday, 1st February 2006 (2847 views)

A UK-based mining minnow is aiming to take on the likes of Barrick and Newmont at the peak of the world's gold exploration market.

Peter Hambro (PHM) is currently only producing 246,000 ounces of gold a year from its mines in Russia's Amur region.

But out of tiny acorns grow mighty oaks, with the AIM-listed outfit targeting a one million ounce-a-year haul by 2009, the Times reports.

That would thrust PHM – which is already the biggest London-based AIM gold outfit - into the world's gold mining elite.

The globe's biggest gold miner, Barrick Gold, is expecting to produce over eight million ounces of gold next year.

PHM's cocksure projections, combined with soaring gold prices, have ensured its market capitalisation surpassed the £1 billion mark for the first time this week. Its valuation has surged 73 per cent in the last four months.

The company has just pledged to invest $327 million in its Russian mines between 2007 and 2009 to help realise its dreams, MosNews reports.

Its Russian gold production increased by 19 per cent in 2005.

 

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