10th Apr 2017 07:00
HIGHLAND GOLD MINING LIMITED
10 April 2017
Full Year 2016 Audited Results
Highland Gold Mining Limited ("the "Company"), the AIM-quoted gold producer, presents its final audited results for the year ended 31 December 2016.
FINANCIAL HIGHLIGHTS
US$000 (unless stated) | 2016 | 2015 | ||
Production (gold and gold eq. oz) | 261,159 | 262,485 | ||
Group all-in sustaining costs (US$/oz) | 652 | 640 | ||
Total Group cash costs (US$/oz) | 454 | 480 | ||
Revenue | 305,901 | 276,175 | ||
Operating profit | 69,361 | 22,413 | ||
EBITDA1 | 162,491 | 133,317 | ||
Net profit /(loss) | 47,909 | (10,019) | ||
Earnings /(loss) per share (US$) | 0.145 | (0.032) | ||
Net profit before impairment losses | 70,741 | 25,963 | ||
Net cash inflow from operations | 136,164 | 105,603 | ||
Capital expenditure | 59,349 | 42,195 | ||
Net debt2 | (205,465) | (231,442) | ||
1EBITDA is defined as operating profit/ (loss) excluding depreciation and amortisation, impairment losses, movement in ore stockpiles obsolescence provision, movement in raw materials and consumables obsolescence provision, result of disposal of a non-core entity and gain on settlement of contingent consideration
2Net debt is defined as cash and cash equivalent, financial assets, decreased by interest-bearing loans and borrowings and by liability under finance lease
KEY EVENTS
• Total 2016 production of 261,159 oz of gold and gold equivalent, in the upper half of the guidance range for the year of 255-265k oz. (2015 production: 262,485 oz).
• Average realised price for gold and gold equivalent in 2016 was US$1,136 per oz (2015: US$1,062 per oz).
• Total Cash Costs lowered by 5.5% to US$454 per oz and All-In Sustaining Cash Costs up by 1.8% to US$652 per oz.
• Cash inflow from operating activities rose 28.9% to US$136.2 million (2015: US$105.6 million)
• Net debt to EBITDA ratio reduced to 1.26 as of 31 December 2016 from 1.74 in the previous year.
• Interim dividend of £0.050 per share paid for H1 2016 (2015: Interim dividend of £0.020 per share).
• Mnogovershinnoye (MNV) - An adjusted internal Life-of-Mine model for MNV, based on ongoing near-mine exploration and reserve recalculations, now provides for production through at least 2022 (versus 2018 previously).
• Novo - Project for expansion to 1.3 mtpa ore mining and processing capacity underway and on track for completion in late 2018.
• Blagodatnoye - Extensive exploration drilling carried out to confirm resources.
• Baley Hub - De-watering programme initiated for existing Taseevskoye open-pit with a view to de-risking the project and allowing for further reserve confirmation. Exploration work also carried out on Sredny Golgotay along with a pilot mining project at the Kaftan site on the Sredny Golgotay licence.
POST YEAR EVENTS
• Final dividend of £0.054 per share recommended, making a total distribution of £0.104 per share for the year to 31 December 2016 (2015: £0.045 per share).
2017 TARGETS
• Total production of gold and gold equivalent is expected to remain stable at 255,000-265,000 oz.
• MNV - To continue extensive near-mine exploration programme throughout the year with a view towards further extending Life of Mine.
• Novo - To proceed with design and construction work on mill expansion.
• Belaya Gora - To complete a pre-feasibility study on processing plant upgrades and the inclusion of Blagodatnoye in Belaya Gora operations
• Kekura - To complete a definitive feasibility study and move forward with procurement, infrastructure and construction preparations.
• Baley Hub - To continue de-risking Taseevskoye and to examine development options for the Baley Hub projects.
• To complete updated JORC-compliant reserve estimations on key operating and development projects.
CONFERENCE CALL DIAL-IN DETAILS
The Company will hold a simultaneous webcast and conference call to discuss the results, hosted by CEO Denis Alexandrov, on 10 April 2017 at 10:00 UK time (12:00 Moscow).
This event is being streamed. It is recommended that you listen via your computer speakers. The link for online registration is: http://engage.vevent.com/rt/webcasting/index.jsp?seid=809
To register to participate by telephone and to receive local dial-in numbers, please follow this link:
http://emea.directeventreg.com/registration/1943163
The Annual General meeting will be held on 17 May 2017.
FOR FURTHER INFORMATION PLEASE CONTACT:
Highland Gold | John Mann, Head of Communications+ 7 495 424 95 21Duncan Baxter, Non-Executive Director+ 44 (0) 1534 814 202 |
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Numis Securities Limited(Nominated Adviser and Broker) | John Prior, James Black Paul Gillam +44 (0) 207 260 1000
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Peat & Co(Joint Broker) | Charlie Peat+44 (0) 207 104 2334 |
Please find the full version of the press release in the attached PDF.
http://www.rns-pdf.londonstockexchange.com/rns/9931B_-2017-4-9.pdf
Related Shares:
HGM.L