Released: 23 Sep 2014
View the full results announcement (PDF - 892 Kb)
23 September 2014 Highland Gold Mining Limited ("Highland Gold," "Highland" or the "Company") announces its unaudited financial results and production figures for the half year ended 30 June 2014.
FINANCIAL SUMMARY
IFRS, US$000 (unless stated) | H1 2014 | H1 2013 |
Production (gold and gold eq.oz) | 120,121 | 105,630 |
Total Group cash costs (US$/oz) | 689 | 717 |
Group all-in sustaining costs (US$/oz) | 900 | 912 |
Revenue | 142,240 | 157,033 |
Operating profit | 26,268 | 35,528 |
Net profit | 20,307 | 17,000 |
EBITDA | 48,375 | 63,278 |
Earnings per share (US$) | 0.062 | 0.052 |
Net cash inflow from operations | 64,495 | 71,640 |
Capital expenditure | 36,429 | 67,929 |
Net debt position | 239,242 | 177,604 |
The interim condensed consolidated financial statements of Highland Gold for the six months ended 30 June 2014 are set out below.
H1 2014 KEY EVENTS
Financial & Operations
- Half-year financial results demonstrate the Group's ability to drive performance during a period of weaker gold prices
- The Belaya Gora plant, operating in ramp-up mode, helped deliver a 14% overall increase in Group production as compared to H1 2013. Total output of gold and gold equivalents was 120,121 oz
- Total cash costs decreased by 4% and All-in sustaining costs decreased by 1%, to levels near the median of Russian and international peers.
- Net Debt to EBITDA ratio maintained at the level of 2.0
- Interim dividend of £0.025 per share (H1 2013: Interim dividend of £0.025 per share)
Development and Exploration
- Work on improving production facilities at the Belaya Gora plant continued
- Klen project design documentation was finalised and formally approved
- International consultants nearing completion of a pre-feasibility study for the Kekura project
POST HALF YEAR EVENTS
- Acquisition of the North-Western Flank licence in July 2014 with the potential to deliver new resources at MNV
- New credit facility signed in September 2014 with UniCredit for US$50.0 million as reserve credit line
TARGETS FOR H2 2014
- Organic production growth is expected at Novo. Annual mill throughput is expected to reach 550,000 tonnes of ore by year end, with preparations for a further production increase next year already underway
- Updated production guidance for FY 2014 of 280-291 thousand ounces of gold and gold equivalents, representing at least a 20% increase in output year-on-year.
- Management remains focused on maintaining achieved efficiency, increasing performance, and delivering dividends to shareholders
For further information please contact:
Highland Gold |
Communications Department + 7 495 424 95 21 Duncan Baxter, Non-Executive Director + 44 (0) 1534 814 202 |
Numis Securities Limited (Nominated Adviser and Joint Broker) |
John Prior, James Black Paul Gillam +44 (0) 207 260 1000 |
Peat & Co (Joint Broker) |
Charlie Peat +44 (0) 207 104 2334 |
distributed by |