TIDMHGM
RNS Number : 6934P
Highland Gold Mining Limited
04 September 2017
HIGHLAND GOLD MINING LIMITED
Interim Results Announcement for H1 2017
04 September 2017
Highland Gold Mining Limited ("Highland Gold", the "Company" or
"Group") today reports its unaudited financial results and
production figures for the half year ended 30 June 2017 ("H1
2017").
FINANCIAL SUMMARY
IFRS, US$000 (unless otherwise
stated) H1 2017 H1 2016
Gold sold (gold and gold eq.
oz) 128,503 127,697
---------------------------------- -------- --------
Total Group cash costs (US$/oz)* 509 444
----------------------------------
Group all-in sustaining costs
(US$/oz)* 674 609
---------------------------------- -------- --------
Revenue 147,176 147,097
---------------------------------- -------- --------
Operating profit 43,415 50,420
---------------------------------- -------- --------
Net profit 25,932 37,052
---------------------------------- -------- --------
EBITDA* 73,248 79,720
---------------------------------- -------- --------
EBITDA margin (%)* 50% 54%
---------------------------------- -------- --------
Earnings per share (US$) 0.079 0.113
---------------------------------- -------- --------
Net cash inflow from operations 59,316 78,378
---------------------------------- -------- --------
Capital expenditure 27,437 18,814
---------------------------------- -------- --------
Net debt position* 203,538 197,900
* Definitions for non-IFRS terms are provided in the glossary to
the Chief Financial Officer's Report below.
The interim condensed consolidated financial statements of
Highland Gold for the six months ended 30 June 2017 are set out
below.
H1 2017 HIGHLIGHTS
Financial
-- Total first half revenue was broadly flat year-on-year at US$147.2 million.
-- H1 2017 EBITDA was US$73.2 million, a decrease of 8.1% from
H1 2016, chiefly due to a stronger rouble (average exchange rate
was 57.76 RUB/USD in H1 2017 vs 70.23 RUB/USD in H1 2016), higher
production costs and utilisation of low-grade ore at BG. EBITDA
margin for the period was 50% versus 54% for H1 2016.
-- All-in sustaining costs (AISC) per ounce rose to US$674 from
US$609 in H1 2016 due to the stronger rouble and lower average
grades at Belaya Gora.
-- The net debt to EBITDA ratio rose marginally to 1.30 as of 30
June 2017 versus 1.26 as of 31 December 2016, when net debt was US$
205.5 million.
Operations
-- Total production at Mnogovershinnoye (MNV), Novoshirokinskoye
(Novo) and Belaya Gora for H1 2017 was 131,784 oz of gold and gold
equivalent, up 2.4% from 128,671 in H1 2016.
-- MNV and Novo improved on H1 2016 gold and gold equivalent
production by 13% and 5.2%, respectively.
-- At Belaya Gora, continued focus on processing low-grade ore
stockpiles pending the completion of an ongoing project review.
-- New JORC-compliant reserve estimate at MNV doubled ore
reserves and supported the extension of life of mine by four years
to 2022.
-- New exploration licences received for two areas adjacent to
MNV, and an extensive near-mine exploration programme continued on
existing MNV licence areas.
-- Scoping study for Unkurtash completed and published, and
consultants retained to identify potential partners for developing
the project.
POST HALF YEAR EVENTS
-- Interim Dividend of GBP0.0498 per share approved by the Board of Directors
-- The Company affirms its forecast for total production of gold
and gold equivalent of 255,000-265,000 oz for the full year.
CONFERENCE CALL DETAILS
The Company will hold a simultaneous webcast and conference call
to discuss the results, hosted by CEO Denis Alexandrov, on Monday,
04 September 2017 at 10:00 UK time (12:00 Moscow).
This event will be streamed live online. To listen and view the
slide presentation in real time, it is recommended to access it via
computer. The link for online registration is:
https://digital.vevent.com/rt/highlandgoldmining/index.jsp?seid=17
To register to participate by telephone and to receive local
dial-in numbers, please follow this link:
http://emea.directeventreg.com/registration/78381745
Please find the full version of the press release in the
attached PDF.
http://www.rns-pdf.londonstockexchange.com/rns/6934P_-2017-9-4.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
Highland Gold John Mann, Head of Communications
+ 7 495 424 95 21
Duncan Baxter, Non-Executive Director
+ 44 (0) 1534 814 202
Numis Securities Limited John Prior, James Black
(Nominated Adviser and Broker) Paul Gillam
+44 (0) 207 260 1000
Peat & Co Charlie Peat
(Joint Broker) +44 (0) 207 104 2334
***
This information is provided by RNS
The company news service from the London Stock Exchange
END
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