The latest London South East Webinar takes place on July 6. Come and hear CEO’s from Orosur Mining, Caledonia Mining, Glantus Holdings and Tekcapital speak. Please register here

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksHighland Gold Share News (HGM)

  • There is currently no data for HGM

Watchlists are a member only feature

Login to your account

RNS Alerts are a premium feature

Login to your account

myTerminal is a premium feature

Login to your account

Don't have an account? Click here to register.

Highland Gold Sees Good Results As Gold Price Soars In First Half

Tue, 1st Sep 2020 11:04

(Alliance News) - Russian gold miner Highland Gold Mining Ltd on Tuesday saw a drop in production in the first half of 2020 but came out on top with an 11% increase in revenue thanks soaring gold prices.

The company posted a pretax profit for the six months ended June 30 of USD69.0 million, widening from USD56.1 million a year prior.

Revenue was up 11% to USD194.5 million from USD174.7 million the year before.

Gold production was down in the half to 124.43 million ounces from 142.3 million ounces a year prior.

Highland Gold said that despite the lower sales volumes, its increase in revenue was achieved due to higher realised prices for gold and gold equivalent.

Chief Executive Denis Alexandrov said: "Highland Gold had a positive first half of 2020 despite the ongoing global pandemic, buoyed by strong gold prices and continued progress at our operating mines and on each of our key development goals for the year. The company achieved a solid financial performance in spite of upward pressure on costs resulting, in part, from lower first half production volumes and costs associated with addressing Covid-19."

The company said that Covid-related care and maintenance costs in the first half amounted to USD2.1 million.

The company has deferred making a decision on the payment of an interim dividend. This decision is pending the outcome of the sale of 40% of the company's share capital by Directors Euhene Shvidler and Velery Oyf to Fortiana Holdings Ltd, announced on July 31.

Going forward, the company is expecting to ramp up its operations in the second half.

Alexandrov said: "From an operational standpoint, our mining plans for this year are weighted towards the second half and we maintain our production guidance for the year. The Novo and Belaya Gora expansion projects are progressing and remain on track for completion this year. Construction at Kekura continues apace, and work has also begun on the smaller Baley ZIF-1 heap leach project, which together will help the company achieve its target of exceeding 500,000 ounces of production in the year 2023."

Shares were down 0.3% at 295.00 pence each on Tuesday morning in London.

By Greg Roxburgh; gregroxburgh@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

More News

Fortiana Extends Highland Gold Acceptances Offer To November 19

Fortiana Extends Highland Gold Acceptances Offer To November 19

4 Nov 20 09:37

Highland Gold Mining To Ramp Up Production In Last Few Months Of Year

Highland Gold Mining To Ramp Up Production In Last Few Months Of Year

29 Oct 20 11:16

IN BRIEF: Highland Gold Mining Names Largest Shareholder As New Chair

IN BRIEF: Highland Gold Mining Names Largest Shareholder As New Chair

21 Oct 20 14:39

IN BRIEF: Highland Gold's Takeover By Fortiana Now Unconditional

IN BRIEF: Highland Gold's Takeover By Fortiana Now Unconditional

20 Oct 20 19:33

UK DIRECTOR DEALINGS SUMMARY: IG Exec Sells Spread Bet On IG Shares

UK DIRECTOR DEALINGS SUMMARY: IG Exec Sells Spread Bet On IG Shares

21 Sep 20 14:58

UK TRADING UPDATE SUMMARY: Hutchison China Drug Application Accepted

UK TRADING UPDATE SUMMARY: Hutchison China Drug Application Accepted

17 Sep 20 21:35

Highland Gold Sees Good Results As Gold Price Soars In First Half

Highland Gold Sees Good Results As Gold Price Soars In First Half

1 Sep 20 11:04

UK Earnings, Trading Statements Calendar - Next 7 Days

UK Earnings, Trading Statements Calendar - Next 7 Days

25 Aug 20 15:52

IN BRIEF: Fortiana Buys 40% Stake In Highland Gold, Offers To Buy Rest

IN BRIEF: Fortiana Buys 40% Stake In Highland Gold, Offers To Buy Rest

31 Jul 20 12:08

Roman Abramovich sells stake in Highland Gold

(Sharecast News) - A group of investors in Highland Gold, including Russian billionaire Roman Abramovich, announced on Friday the sale of a roughly 40% stake in the company's share capital to Fortiana Holdings at a valuation of approximately $1.1bn.

31 Jul 20 10:18

UK Shareholder Meetings Calendar - Next 7 Days

UK Shareholder Meetings Calendar - Next 7 Days

23 Jul 20 16:03

Highland Gold Mining Output Falls In Fist Half; Confirms Guidance

Highland Gold Mining Output Falls In Fist Half; Confirms Guidance

9 Jul 20 11:41

Highland Gold Continues Operations, Starts To Reopen Headquarters

Highland Gold Continues Operations, Starts To Reopen Headquarters

29 Jun 20 10:28

Highland Gold agrees sale of non-core Kayen licence

(Sharecast News) - Highland Gold Mining has agreed to the sale of the Kayenmivaam, or 'Kayen', licence for $15m in cash, plus a royalty, it announced on Tuesday.

2 Jun 20 10:28

Highland Gold Mining To Sell Kayenmivaam Licence For USD15 Million

Highland Gold Mining To Sell Kayenmivaam Licence For USD15 Million

2 Jun 20 09:46

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.