HGM.L Share News (HGM)

Highland Gold Mining matched production guidance in 2010 and thinks it will increase output by up to 10% this year.The company's three Russian mines - Mnogovershinnoye, Novoshirokinskoye and newly commissioned Belaya Gora - produced 200,028 ounces of gold and gold equivalents during the 12 months, up 23% on 2009.In 2011, the figure is likely to be between 210,000 and 220,000, said Highland, part-owned by Chelsea owner Roman Abramovich and Canadian mining giant Barrick Gold.Mnogovershinnoye produced more than expected during the last six months of 2010, up to 94,585 ounces, taking the total for the year to 170,356 ounces.At Novoshirokinskoye, in which Highland has a 48.3% stake, output almost doubled in the second half, up to 38,662 ounces from 20,741 in the first six months. Highland's share was 18,654 and 10,018 ounces respectively.Belaya Gora yielded 1,000 ounces of gold for November and December, but is expected to churn out 1,000 ounces each month this year.The company says it is currently debt free after fast tracking loan repayments. It had cash and cash equivalent of $235m (£149m) at the end of 2010.