HGM.L Share News (HGM)

Russian gold producer Highland Gold said half year net profit fell but gold and gold equivalents production is still on track to reach 200,000 to 210,000 ounces this year. Net profit from continuing operations fell to $23.3m in the half year ended 30 June 2010 from $39.6m the year before. Revenue increased to $100.5m from $78.8m previously. Gold produced fell to 75,771 ounces during the period from 78,421 ounces the year before.Highland Gold took a foreign exchange loss of $5.2m compared to a $21.05m gain in 2009.Commenting on the results, chairman Duncan Baxter said, "Overall the company's strategy of increasing production while keeping costs to a minimum is working well. After a period of restructuring of the group's operations, the foundations are now in place to grow the business."