UPDATE 1-Peter Hambro says hopes to restart dividends

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LONDON, June 18 (Reuters) - Russian gold producer Peter Hambro Plc (POG.L) hopes to be able to resume dividend payments quickly, its chairman said on Thursday.

"We hope to be back in the dividend paying mode as soon as we possibly can," Peter Hambro told the Russian and CIS Mining Symposium in London.

"I believe it is a high priority of the board."

London-listed Hambro, Russia's second biggest gold producer, scrapped its final dividend for 2008 to conserve cash.

"Obviously it was very difficult in the great crisis times at the end of last year to pay a dividend to shareholders when we needed money to keep the business going," he added.

"We are now in a strong financial position, we have very few debts."

In April, the firm finalised its takeover of cash-rich Russian iron ore company Aricom OREA.L, which gave it access to $257 million in cash.

Since the dividend was suspended, the firm has also reported strong first quarter production figures, showing gold output up 72 percent to 107,400 ounces as expansion projects kicked in. [ID:nL7724153].

Hambro moved in April to the main market of the London Stock Exchange from the AIM market and analysts have said it is a contender for later joining the FTSE 100. (Reporting by Eric Onstad; Editing by Greg Mahlich and Elaine Hardcastle)