https://www.engineeringnews.co.za

Highland H1 performance buoyed by gold prices, weaker rouble

Highland H1 performance buoyed by gold prices, weaker rouble

Photo by Creamer Media

3rd September 2019

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

Font size: - +

Russian gold miner Highland Gold posted an 18.9% rise in half-year revenue to $174.7-million, reflecting the contribution from its newly acquired Valunisty mine and increased sales volumes at its Mnogovershinnoye (MNV) operation.

Earnings before interest, taxes, depreciation and amortisation (Ebtida) increased by 21.8% on the prior-year period to $86.5-million, while the Ebitda margin was stable at 50%, compared with 49% a year earlier.

Highland produced 142 254 oz of gold and gold equivalent in the first half of the year, an increase of 10.3% from 128 921 oz in the first half of 2018.

The inclusion of Valunisty and higher maintenance spend for the purchase of new equipment pushed up the all-in sustaining cost to $778/oz, from $697/oz in the prior-year period.

Net profit rose from $28.6-million in the first half of 2018, to $45.7-million in the period under review.

"Highland Gold achieved solid half-year financial performance, buoyed by stable gold prices and a weaker rouble, despite higher maintenance capex for replacing older equipment due to the extension of life-of-mine at our key production assets, and higher costs at our newest mine, Valunisty, which we are now focusing on bringing in line with our other operating assets,” said CEO Denis Alexandrov.

He added that Highland expected higher production levels and stronger operating cash flow in the second half of 2019, as well as continued progress on construction at its key development project, Kekura, and on its ongoing projects to improve operations at each of its existing mines.

The company affirmed its forecast for total 2019 production of 290 000 oz to 300 000 oz of gold and gold equivalent.

The board approved an interim dividend of £0.05 a share.

The miner also reported senior independent director Terry Robinson had passed away on August 16 after a brief illness.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

The Steel Tube Export Association of South Africa
Steel Tube Export Association of South Africa

The Steel Tube Export Association of South Africa was established to develop sustainable, internationally competitive carbon steel tube and pipe...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.061 0.165s - 140pq - 2rq
Subscribe Now