Hambro Steps Back From Gold Target

LONDON — Peter Hambro Mining, the second-biggest gold producer in Russia, fell in London trading after saying it may miss a target to increase annual production to 1 million ounces by 2011.

The London-based company fell 10 percent as equipment delays and exploration stalled output at its Malomir mine by six months, until the first half of 2010. First-half net income fell 33 percent to $14.4 million as costs climbed, it also said Monday in a statement.

"They've had an aggressive growth plan," said Tim Dudley, an analyst at Arbuthnot Securities. The stalled output "will concern investors," he said.

The delay may add to higher labor and fuel costs for Peter Hambro, which said it saw no sign of slower gains in prices. Costs at the Pokrovsky mine, which makes up about 87 percent of production, rose 28 percent to $215 an ounce, it said. The company mainly operates in Russia's eastern Amur region.