Highland announces an increase in its exploration budget

Gold producer Highland Gold Mining has today announced results for the year ended on the past 31st of December 2010. The company has informed of a 47.8% increase in its revenue, to $243m, and a 112% rise in its EBITDA, to $121.3m.Particularly noteworthy, the firm's net cash inflow from operations more than doubled (109%), to $94.6m. That allowed the company to repay all of its debt early ($66.2m).Also, Highland expects both the current and expected cash positions will allow it to assess M&A opportunities under accretive conditions. As highlights for the year management has called attention to the fact that it met production guidance, by producing 200,028 oz. of gold and gold equivalents, for a 23% increase on 2009.Management made a point as well of the commissioning of its mine at Belaya Gora, the continuing development of its processing flow sheet for Taseevskoye, the accelerated development of two advanced stage exploration projects (Unkurtash and Lyubov), and the new acquisitions which it undertook in 2010, such as the Blagodatnoye and Belaya Gora Flanks mines. The exploration budget for 2011 is expected to be considerably more and allocates US$30 million in order to advance both new and existing exploration projects rapidly towards the development stage. At first glance, the firm's results look to have come in line with the preliminary results that it published on the past 26th of January. Production at its main mine, at Mnogovershinnoye, however, is expected to stay flat this year. As of 13:48 London time shares of Highland are moving down by -3.8%, to 165p.ab