Interim Results Announcement for H1 2018


View the full results announcement (PDF)

Highland Gold Mining Limited ("Highland Gold" or the "Company" or "Group", AIM: HGM) today reports its unaudited financial results and production figures for the half year ended 30 June 2018 ("H1 2018").

IFRS, US$000 (unless otherwise stated) H1 2018 H1 2017
Gold sold (gold and gold eq. oz) 121,174 128,503
Total Group cash costs (US$/oz)* 536 509
Group all-in sustaining costs (US$/oz)* 697 674
Revenue 146,897 147,176
Operating profit 50,666 43,415
EBITDA* 71,424 73,248
EBITDA margin (%)* 49% 50%
Net cash inflow from operations 65,700 63,211**
Capital expenditure 26,534 27,437
Net debt position* 189,071 203,538

* Definitions for non-IFRS terms are provided in the footnotes to the Chief Financial Officer's Report below.

** Withholding tax payment was transferred from operating to financing activities in cash flow statement for H1 2017.



  • Total first half revenue was flat year-on-year at US$146.9 million despite lower metal sales.
  • H1 2018 EBITDA was US$71.4 million, a decrease of 2.5% from H1 2017, chiefly due to increased administrative expenses. EBITDA margin for the period was 49% versus 50% for H1 2017.
  • All-in sustaining costs (AISC) per ounce rose to US$697 from US$674 in H1 2017 due to increased administrative expenses and higher maintenance capital expenditure.
  • The net debt to EBITDA ratio was stable at 1.23x as of 30 June 2018 versus 1.28x as of 31 December 2017, when net debt was US$198.3 million.


  • Total production at Mnogovershinnoye (MNV), Novoshirokinskoye (Novo) and Belaya Gora for H1 2018 was 128,921 oz of gold and gold equivalent, down 2.2% from 131,785 in H1 2017 due to lower volumes in the first quarter.
  • Increased output at MNV in the second quarter ("Q2") of 2018 helped make up ground on last year's first-half production level after the processing plant operated at reduced capacity for much of the first quarter ("Q1") of 2018.
  • Belaya Gora achieved improved recoveries as it also returned to full operating capacity in Q2, with first-half output stable year-on-year.
  • A general contractor was selected and mobilised for Stage 1 (mine expansion) of the Company's project to boost Novo's mining and processing capacity to 1.3 Mtpa.
  • A definitive feasibility study was completed for Kekura, where infrastructure preparation and construction work are now in progress.
  • A pre-feasibility study was completed for planned upgrades to the Belaya Gora mill and mining of the nearby Blagodatnoye deposit, including the first JORC-compliant reserve report for Blagodatnoye.


  • Interim Dividend of £0.06 per share approved by the Board of Directors
  • The Company affirms its forecast for total production of gold and gold equivalent of 265,000-275,000 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 Tuesday, 04 September 2018 at 09:00 UK time (11:00 Moscow).

This event will be streamed live online. To listen and view the slide presentation in real time, it is recommended to access it via computer. The link for online registration is:

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


Highland Gold Mining Ltd.


John Mann, Head of Communications

+ 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


BMO Capital Markets

(Joint Broker)

Jeffrey Couch, Tom Rider, Pascal Lussier Duquette

+44 (0) 207 236 1010

Peat & Co

(Joint Broker)

Charlie Peat

+44 (0) 207 104 2334