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The average realised gold price was US$ 1,723 per ounce in the second quarter and US$ 1,655 in the first half of the year.
Seems like HGM will be smashing record profits each quarter.looking forward for Q3/Q4 results with price of gold >$1800/ounce
Good progress, production back end loaded, as long as they are progressing well with the developments as expected production is great - if development stall then that has a more dramatic effect in the mining sector, it's obviously not like a factory where the flexibility to increase/decrease production easy.
Higher prices will now start to have an impact as months of higher revenues have been banked.
"The Company affirms its guidance for total production of 290,000-300,000 oz of gold and gold equivalent in 2020."
HIGHLIGHTS
· Highland Gold's four operating mines produced a total of 61,357 oz of gold and gold equivalent in Q2 2020, in-line with production forecasts for the quarter (Q2 2019: 70,293 oz).
· For the first half of the year ("H1 2020"), total production was 125,347 oz of gold and gold equivalent, also in-line with internal production targets (H1 2019: 142,254 oz).
· The Company affirms its guidance for total production of 290,000-300,000 oz of gold and gold equivalent in 2020.
· Mnogovershinnoye (MNV) and Valunisty increased waste stripping by 101% and 35%, respectively, in H1 2020 in preparation to access higher-grade open pit reserves in the second half of the year.
· Equipment is on-site and buildings are currently being erected for the processing plant expansions at Novoshirokinskoye (Novo) and Belaya Gora, with both projects on track for completion this year.
· Kekura construction also continues as scheduled, with several second phase facilities in progress including the main processing plant and the camp expansion.
· Construction has begun on the Baley ZIF-1 Tailings heap leach project, which is expected to produce first gold in 2022 with average annual output of 15,000 oz over 11 years.
· Production, sales and supply chain were not materially affected by the COVID-19 pandemic, as outlined in the pandemic response statement issued by the Company on 29 June 2020.
· The average realised gold price was US$ 1,723 per ounce in the second quarter and US$ 1,655 in the first half of the year.
Eugene Shvidler 44,714,829 12.3%
Millhouse LLC 37,621,413 10.3%
Roman Abramovich 37,608,816 10.3%
Van Eck Associates Corp. 36,120,155 9.93%
Prosperity Capital Management (RF) Ltd. 34,639,000 9.52%
Denalot Worldwide Ltd. 25,954,993 7.13%
Matteson Overseas Ltd. 16,445,724 4.52%
Valery Oyf 16,439,486 4.52%
Acadian Asset Management LLC 14,580,417 4.01%
Ivan Eugene Koulakov 13,500,000 3.71%
Eventually the share price is rising too. GLA
Gold just hit $1810.
$1,800 hit.
Seems to have decoupled from POG
One of the few gold miners that pay a decent dividend too.
Yes - One of the lowest cost producers per their investor presentation
HGM has a low AISC per ounce. At current price they should be making a profit of close to a $1000/oz.
They should make a profit of $250millions this year according to my calculations. DYOR
As I said earlier the likely selling has nothing to do with any perception that HGM is anything other than a great investment - if you have to sell something I think we would all sell something that we perceived we were getting a decent price for - many of their other businesses are probably in unlisted companies that they can't sell. Least painful option!
The seller David Davidovich has become a multi billionaire and has far bigger investments than this. His investment here is probably not significant for him anymore .
Interesting discussion. Strange time to dump shares in a well managed gold producer when the price of the metal looks likely to rise into the mid $1800s by the end of the week.
All that glitters IS gold, when it comes to Russian mining.
http://www.miningworld.ru/Articles/gold-mining-in-russia-2020-update
Moscow. July 7th. INTERFAX.RU - Partner of Roman Abramovich David Davidovich in early July sold a 0.5% stake in Highland Gold Mining (HGM).
As follows from the message of the company, Davidovich's share in Highland Gold was reduced to 2.68%.
The market price of 0.5% HGM, based on the latest bid closing price in London, is £ 4.1 million (about $ 5.2 million).
On the eve of the transaction, the total share of the main group of Highland Gold shareholders - Roman Abramovich, Evgeny Shvidler and their friendly structures - amounted to 43.77%. One cannot conclude from the message whether Davidovich sold 0.5% of the shares to one of the partners or to a third party. If the buyer was a third party, the share of the main group of shareholders could be reduced to 43.27%.
https://www.interfax.ru/business/716171
Highland Gold is a company registered in the UK and mining gold in Russia. The main projects are located in the Khabarovsk Territory and Transbaikalia, in Chukotka, as well as in Kyrgyzstan.
Looks like Gold is going to break through the $$1800/oz psychological barrier this week.
Oops meant 224 seems like support
Bought more HGM as other goldies were spiking this afternoon. These have to go up soon, 224 seems to be resistance at the moment.
Some other UK listed gold miners haven't done well either if you consider the rise of gold price. I think they will rise eventually if the gold price stays at these levels.
Yet HGM still falls
$1793/oz and likely to rise further. could go above $2000/oz by the end of this year imo.
To add to my thoughts yesterday on our seller - perhaps he is simply selling some of his portfolio that is liquid not trashed. Many sellers of Gold assets do so in order to cover problems in other investments!
I read yesterday evening about Russia having a serious economic problems as C19 causes recession. The crushed oil price hasn't helped, so bearing in mind the Oligarchs have other interests in Russia, Mr Davidovich is in meat processing, it's not a great stretch of the imagination to envisage he needs cash to support other parts of his portfolio.
Perhaps this phenomenon may even account for the fighting in POG as enemies believe their adversaries are financially weakened and for the taking - just a thought. Putin appears give his people some degree of freedom to infight as long as it is within his overall agenda, I recall during the last recession Oligarchs were apparently put on notice they may be expected to do the patriotic thing and repatriate some of their money - maybe he's put them on notice to bring back US Dollars.
Maybe, I'm off the mark, but perhaps worth considering in many other companies that many old scores might be settled or seemingly invincible industrialists fall, and not just in Russia (Closer to home Richard Branson's airline in trouble) and there are many other countries that will be under even greater pressure (some National default are a distinct possibility as $ debt payments become impossible to service.
Whatever you invest in , take care, the current risk on environment appears to me to be very strange in light of the rising C19 numbers and yet to materialise economic consequences. Our seller, is inconsequential even if he sells all his shares - I suspect there will be bigger catalysts to drive Gold prices and assets prices all over the place. Overall, I can't think of a better sector to be in.
https://oilprice.com/Energy/Energy-General/Oil-Price-Crash-Causes-Major-Recession-In-Russia.html
"His holding in HGM probably has not much significance for him anymore."
I think you are probably right , he, personally, probably had nothing to do with the decision, it's penny change to these guys - or maybe liberating some cash to buy a Yacht or Austrian mansion ( apparently there are more Origarch properties in Vienna than London and a few Mr Fixits . Whatever, I wouldn't assume anything.
To be honest I didn't know anything about the guy before the RNS, but backs up what I've been saying about being connected to the right people.