(Alliance News) - Highland Gold Mining PLC reiterated its guidance for 2020 on Wednesday, even as gold production in the first quarter of the year fell.
Highland Gold - which has mines in Kyrgyzstan and the Far East of Russia, reported gold and gold equivalent output of 63,482 ounces, down 12% from 71,961 ounces the same period the year before.
At the Mnogovershinnoye mine in Russia, gold output declined by 16% year-on-year to 25,723 ounces, as did Belaya Gora production by 18% to 9,665 ounces, on lower grades and ore processed.
Production at the Novoshirokinskoye mine also decreased by 5.2% to 21,235 ounces, as the average grade of ore mined declined by 9%.
In Valunisty, gold equivalent production declined by 4.8% to 6,959 ounces due to a 10% decrease in head grade at the mine's processing plant, despite higher mining and processing volumes.
Looking ahead, Highland Gold affirmed its guidance for total gold and gold equivalent production of 290,000 to 300,000 ounces in 2020. In 2019, the group produced 300,704 ounces.
The miner said that it has not experienced any real disruption to its operations as a result of Covid-19, due to the remote location of its assets, and the geographically restricted access.
However, to mitigate any risk to production, Highland Gold's mines are each stockpiling from two to three months of ore.
Shares in Highland Gold Mining were up 4.9% at 228.57 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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