LONDON (Alliance News) - Highland Gold Mining Ltd Tuesday reported a fall in profit for the first half, as it was affected by drop in metal prices.
The Russia-focused company posted a pretax profit of USD29.4 million for the six months to June 30, down from USD33.2 million a year earlier, as revenue dipped to USD142.2 million from USD157.0 million.
Highland said the decline reflected a fall in spot market prices of precious and other metals during the period, despite higher gold and gold equivalent sales.
The group sold 116,567 ounces of gold and gold equivalents in the first 2014, compared with 110,423 ounces in the first half 2013. The group's average realised price of gold and gold equivalents amounted to USD1,210 per ounce in the first half, compared with USD1,381 per ounce a year earlier, a decline of 13%.
The group's earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 23.6% to USD48.4 million, compared with USD63.3 million a year earlier, due to lower gold prices.
The EBITDA margin decreased to 34.0% from 40.3%.
In July, the company finalised the Kekura deposit acquisition and settled its outstanding contingent consideration for USD5.6 million, less than the previously-provided amount. This figure was recognised as a gain on settlement of contingent consideration in the interim consolidated statement of comprehensive income, the company said.
The company maintained its interim dividend at 0.025 pence per share.
Highland Gold Mining shares were quoted down 1.9% at 52.50 pence Tuesday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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