Full Year 2016 Audited Results
10.04.2017
View the Full Results Announcement (PDF)
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$/oz) |
454 |
480 |
||
|
Revenue |
305,901 |
276,175 |
||
|
Operating profit |
69,361 |
22,413 |
||
|
EBITDA[1] |
162,491 |
133,317 |
||
|
Net profit /(loss) |
47,909 |
(10,019) |
||
|
Earnings /(loss) per share (US$) |
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 debt[2] |
(205,465) |
(231,442) |
||
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.
________________________
1 EBITDA 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.
2 Net debt is defined as cash and cash equivalent, financial assets, decreased by interest-bearing loans and borrowings and by liability under finance lease
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.
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