Highland Gold Mining Limited reports its unaudited financial results and production figures for the half year ended 30 June 2017 (“H1 2017”).
|IFRS, US$000 (unless otherwise stated)|
|Gold sold (gold and gold eq. oz)|
|Total Group cash costs (US$/oz)*|
|Group all-in sustaining costs (US$/oz)*|
|EBITDA margin (%)*|
|Earnings per share (US$)|
|Net cash inflow from operations|
|Net debt position*|
* Definitions for non-IFRS terms are provided in the glossary to the Chief Financial Officer’s Report below.
The interim condensed consolidated financial statements of Highland Gold for the six months ended 30 June 2017 are set out below.
H1 2017 HIGHLIGHTS
- Total first half revenue was broadly flat year-on-year at US$147.2 million.
- H1 2017 EBITDA was US$73.2 million, a decrease of 8.1% from H1 2016, chiefly due to a stronger rouble (average exchange rate was 57.76 RUB/USD in H1 2017 vs 70.23 RUB/USD in H1 2016), higher production costs
- and utilisation of low-grade ore at BG. EBITDA margin for the period was 50% versus 54% for H1 2016.
- All-in sustaining costs (AISC) per ounce rose to US$674 from US$609 in H1 2016 due to the stronger rouble and lower average grades at Belaya Gora.
- The net debt to EBITDA ratio rose marginally to 1.30 as of 30 June 2017 versus 1.26 as of 31 December 2016, when net debt was US$ 205.5 million.
- Total production at Mnogovershinnoye (MNV), Novoshirokinskoye (Novo) and Belaya Gora for H1 2017 was 131,784 oz of gold and gold equivalent, up 2.4% from 128,671 in H1 2016.
- MNV and Novo improved on H1 2016 gold and gold equivalent production by 13% and 5.2%, respectively.
- At Belaya Gora, continued focus on processing low-grade ore stockpiles pending the completion of an ongoing project review.
- New JORC-compliant reserve estimate at MNV doubled ore reserves and supported the extension of life of mine by four years to 2022.
- New exploration licences received for two areas adjacent to MNV, and an extensive near-mine exploration programme continued on existing MNV licence areas.
- Scoping study for Unkurtash completed and published, and consultants retained to identify potential partners for developing the project.
POST HALF YEAR EVENTS
- Interim Dividend of ?0.0498 per share approved by the Board of Directors
- The Company affirms its forecast for total production of gold and gold equivalent of 255,000-265,000 oz for the full year.