Final Results for the Six Months to 31 December 2002


Financial Highlights

  • Admission to AIM in December 2002 raising US$25 million for the Company after costs
  • Turnover
    • Turnover of US$27.4 million for the period
    • Full year pro forma turnover US$55.7 million (2001: US$ 40.1 million)
  • Operating profit
    • Operating profit of US$8.6 million,
    • Full year pro forma operating profit US$25.8 million (2001: US$13.6 million)
  • Profit before tax
    • US$9.4 million in the period
    • US$14.7 million in the first half for MNV
  • Earnings per share of 6.9 cents per share
  • Recommended dividend of US$0.01 per share

Business Highlights

  • Total 2002 gold production at MNV of 178,000 oz (2001: 153,000 oz)
  • Average cash operating cost for the year - $149 per oz
  • Acquisition of Novoshirokinskoye
  • Capital expenditure of US$11.3 million for the period (excluding acquisition of Novoshirokinskoye)
  • Long term licences secured at Darasun and Teremky to 2023 post year end

Commenting on the results, Peter Daresbury, Executive Chairman said:

"Since the successful admission to trading on AIM, we have exceeded our production targets at MNV and have made considerable progress with our development projects at both Darasun and Novoshirokinskoye.

"In recent months, operating costs, some external, have risen and we expect certain of these costs to continue to rise in 2003. In part this reflects planned increases in expenditure which will enable the Group to continue to optimise the performance of the mining operations at MNV. Furthermore, it is important to note that Russia remains a low cost environment for gold mining. This is illustrated by the Group's average annual cash operating costs of US$149/oz. In the first quarter of 2003, I am pleased to report that the Company processed 209,000 tonnes of ore, a like-for-like increase of 11% against 2002.

"Highland Gold's existing platform of operational and development assets in Russia, together with its financial, technical and operational expertise, provides a firm foundation for the achievement of the Group's strategic goals. The Board is confident that with the number and quality of opportunities that it is pursuing and the access to international capital that the admission to AIM has provided, the Group has all that is necessary to allow it to become a mid-tier gold producer."

Enquiries: 020 7404 5959
Highland Gold Lord Daresbury, Executive Chairman
Ivan Koulakov, Managing Director
Brunswick Patrick Handley
Mark Antelme

View the financial results (PDF - 632 Kb)