Released: 18 Sep 2013
View the full results announcement (PDF - 880 Kb)
18 September 2013 - 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 2013.
FINANCIAL SUMMARY
IFRS, US$000 (unless stated) |
H1 2013 unaudited |
FY 2012 restated |
H1 2012 restated unaudited |
Production (gold and gold eq.oz) | 105,630 | 216,885 | 101,900 |
Gold sales (gold and gold eq.oz) | 110,423 | 215,917 | 102,036 |
Group total cash costs (US$/oz) | 717 | 670 | 747 |
Group all-in sustaining costs (US$/oz) | 912 | 894 | 981 |
Revenue | 157,033 | 351,828 | 161,453 |
Gross profit | 48,993 | 150,562 | 61,679 |
EBITDA | 63,278 | 179,001 | 71,503 |
Net profit | 17,000 | 126,427 | 47,991 |
Earnings per share (US$) | 0.052 | 0.388 | 0.148 |
Net cash inflow from operations | 71,640 | 137,598 | 70,810 |
Capital expenditure | 67,929 | 125,028 | 47,073 |
Kekura acquisition | 207,000 | - | - |
(Net debt position)/ Net cash and investments | (177,604) | 52,596 | 150,793 |
H1 2013 KEY EVENTS
Financial & Operations
- Production guidance in respect of FY2013 maintained at 225,000 - 240,000 oz of gold and gold equivalents
- Total cash costs were a highly competitive US$717 per ounce reflecting the cost reduction programme initiated in H2 2012
- Combined production of gold and gold equivalents from Mnogovershinnoye ("MNV") and Novoshirokinskoye ("Novo") mines reached 105,630 oz - a 3.7% increase compared with H1 2012
- Optimisation of Novo's production operations resulted in a 6% increase in processed tonnes versus H1 2012
- Interim dividend of £0.025 per share (H1 2012: Interim special dividend of £0.048 per share)
- Company's assets remained unimpaired despite significant declines in metal prices
- Investment strategy refined in the light of adverse market conditions
- Group JORC compliant resources registered a 25% increase to 16.5 Moz (compared with 13.2 Moz stated at 31 December 2012) as a result of the Kekura licence purchase and an independent resource audit update at Unkurtash
Development and Exploration
- Construction of Belaya Gora processing facility and wet testing completed with ore feed tests and process adjustments underway
- Commencement of preliminary construction work at Klen project following ongoing equipment deliveries
- Construction of Kekura pilot plant making good progress with commissioning expected in Q4
- MNV's Western Flank exploration programme underway, targeting potential near surface resources adjacent to existing operations
POST HALF YEAR EVENTS
- The official opening of Belaya Gora's process plant by the Governor of the Khabarovsk Region and other dignitaries was held on 22 July 2013 accompanied by a viewing of all the facilities and operations
- Upgrade of SAG mill at Novo completed in July 2013
- Appointment of Colin Belshaw as an Independent Non-Executive Director with effect from 10 September 2013
- New US$100.0 million financial agreement with Sberbank signed in September 2013
CONFERENCE CALL DETAILS
The Company will hold a conference call on Wednesday, 18 September 2013, hosted by Valery Oyf, CEO, to discuss the interim results. The conference call will take place at 9 a.m. UK time (12.00 Moscow). To participate in the conference call, please dial one of the following toll-free numbers:
UK Free Call 0800 694 0257
UK Local Call 0844 493 3800
UK Standard International +44 (0) 1452 55 55 66
USA Free Call 1866 966 9439
Conference ID 64440355
A replay of the presentation will be accessible shortly afterwards by dialing one of the following numbers:
International Dial In +44 (0) 1452 55 00 00
UK Local Dial In 0844 338 66 00
USA Free Call Dial In 1866 247 4222
For further information please contact:
Highland Gold Mining |
Dmitry Yakushkin, Head of Communications + 7 495 424 95 21 Duncan Baxter, Non-Executive Director + 44 (0) 1534 814 202 |
Numis Securities Limited (Nominated Adviser and Joint Broker) |
Stuart Skinner / John Prior, Nominated Adviser +44 (0) 207 260 1000 |
Peat & Co (Joint Broker) |
Charlie Peat +44 (0) 207 104 2334 |
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