12th Apr 2019 09:11
LONDON (Alliance News) - Highland Gold Mining Ltd on Friday reported a rise in annual profit, despite revenue dipping slightly.
Highland mines in Kyrgyzstan and the Far East of Russia, with four producing mines, all in Russia: Mnogovershinnoye, or MNV, Belaya Gora, Novoshirokinskoye, and Valunisty, which was bought towards the end of 2018 for almost USD80 million.
Highland posted a 1.7% drop in 2018 revenue to USD311.2 million, but pretax profit increased 7.9% to USD108.2 million, helped by lower expenses.
Earnings before interest, tax, depreciation, and amortisation fell slightly to USD153.1 million from USD155.3 million the year prior.
Total cash costs were flat at USD506 per ounce, but all-in sustaining costs rose 2.7% to USD682.
Highland's production in gold and gold equivalent ounces for the year was 269,500 ounces, slightly lower than the 272,274 reported for 2017, but within guidance. This was originally reported in January.
Looking to 2019, Highland has reiterated January guidance of gold and gold equivalent production between 290,000 ounces and 300,000 ounces.
Highland has paid two interim dividends of 11 pence in total, and has declared a third payment of 2.4p, taking the total for 2018 to 13.4p. This compares to 10.40p in 2017.
"Highland Gold is committed to growth, both organic and acquisitive, and I am pleased to report 2018 and the early months of the current financial year have witnessed significant developments on that front," said Executive Chair Eugene Shvidler.
"The company's recent corporate highlights, namely the purchase of the Valunisty gold mine and the seven-year 'life of mine' extension of MNV, as well as the ramp-up of construction at Kekura, reflect key aspects of our overall strategy to capitalise on Highland's valuable and substantial asset base."
"Looking to the future, we are confident the ongoing implementation of our strategy, together with the maintenance of rigorous cost disciplines and the roll-out of a new programme for operational efficiency and continuous improvement, will continue to serve shareholders well in the ensuing years," Shvidler added.
Shares were 1.4% lower on Friday morning at a price of 184 pence each.
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