Interim Results Announcement for H1 2016


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Highland Gold Mining Limited (“Highland Gold”, the “Company” or “Group”) today reports its unaudited financial results and production figures for the half year ended 30 June 2016 ("H1").


IFRS, US$000 (unless stated) H1 2016 H1 2015
Gold sold (gold and gold eq. oz) 127,697 119,277
Total Group cash costs (US$/oz) 444 538
Group all-in sustaining costs (US$/oz) 609 710
Revenue 147,097 130,740
Operating profit 50,420 18,778
Net profit 37,052 14,466
EBITDA* 79,720 54,885
EBITDA margin (%)* 54% 42%
Earnings per share (US$) 0.113 0.044
Net cash inflow from operations 18,814 18,153
Capital expenditure 239,242 177,604
Net debt position* 197,900 232,427

The interim condensed consolidated financial statements of Highland Gold for the six months ended 30 June 2016 are set out below.



  • Total first half revenue rose 13% year-on-year to US$147.1 million, reflecting improved metals prices and increased sales volumes during the period.
  • H1 2016 EBITDA was US$ 79.7 million, an increase of 45% over H1 2015, while EBITDA margin rose to 54%.
  • All-in sustaining costs (AISC) per ounce fell by 14% to US$609/oz, assisted by ongoing weakness in the rouble and strict cost controls.
  • Free cash flow (defined as net cash flows from operating activities less cash flows used in investing activities) was US$60.7 million.
  • INet debt to EBITDA ratio reduced to 1.3 as of 30 June 2016 versus 1.7 as of 31 December 2016 as the Company directed free cash flow to debt repayment.


  • Total H1 2016 production of 128,671 oz of gold and gold equivalent at Mnogovershinnoye (MNV), Novoshirokinskoye (Novo), Belaya Gora, and Sredny Golgotay (Kaftan site), an increase of 6% from 121,242 oz in H1 2015.
  • MNV and Novo exceeded internal production targets for the quarter, while at Belaya Gora efforts to optimise operations were ongoing.
  • Exploration work continued on the Northern ore body at MNV, with reserves expected to receive approval from regulators by year-end.
  • Work commenced on the planned expansion of processing capacity at the Novo mill.
  • Pre-feasibility study completed for Kekura, and a subsequent fatal flaw review supported open pit and underground mine design plans.
  • Scoping studies initiated for the Baley Cluster Projects (Taseevskoye, Sredny Golgotay and ZIF-1 tailings) and Unkurtash, and a revised pre-feasibility study initiated for Klen. 


  • Interim Dividend of £0.05 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.


The Company will hold a simultaneous webcast and conference call to discuss the results, hosted by CEO Denis Alexandrov, on Monday, 26 September 2016 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:

To register to participate by telephone and to receive local dial-in numbers, please follow this link:

For further information please contact:

Highland Gold

Communications Department
+ 7 495 424 95 21
Duncan Baxter, Non-Executive Director
+ 44 (0) 1534 814 202
Numis Securities Limited
(Nominated Adviser and Joint Broker)
John Prior, James Black
Paul Gillam
+44 (0) 207 260 1000
Peat & Co
(Joint Broker)
Charlie Peat
+44 (0) 207 104 2334