Final Results for the Year Ended 31 December 2005
26.04.2006
Highlights
| FY 2005 | FY 2004 | |
| US$000s (unless stated) |
US$000s (unless stated) |
|
| Production (ounces) | 160,216 | 199,896 |
| Turnover | 75,955 | 82,062 |
| EBITDA* | 4,787 | 25,610 |
| Operating profit (loss) | (3,097) | 18,784 |
| Profit (loss) before tax | (9,407) | 14,229 |
| Net profit (loss) | (7,174) | 5,011 |
| Earnings (loss) per share (cents) | (4) | 4 |
| Total assets | 374,219 | 337,017 |
| Net cash flow from operations | 7,751 | 10,455 |
| Capital expenditure | 56,143 | 69,168 |
| Dividend per share (cents) | Nil | 2 |
*EBITDA equals to cash generated from operating activity.
- Gold production for 2005 was 160,216 ounces (MNV 140,038; Darasun 20,178)
- Significant turnaround during the second half at MNV
- Commissioned the Darasun mill in September 2005
- Expanded partnership with Barrick Gold - the Taseevskoye JV was established subject to certain Russian regulatory approval.
- Taseevskoye production capacity extended by licences for Sredne-Golgotayskoye and ZIF-1 tailings
- Obtained exploration licences for Belaya Gora, Sovinoye and Malo-Fedorovskoye
- JORC resource calculations for Mayskoye and Taseevskoye completed
- US$50 million equity subscription by Barrick Gold
- Rouble bond issued equivalent to US$26.8 million to fund further development
- Strengthened board and management team
Commenting on today’s results, James Cross, Chairman said: “While 2005 was clearly a difficult year for Highland Gold, we have made a number of key management appointments and introduced new processes and controls which are already having a beneficial impact on the business. In 2006, we expect to complete our restructuring programme and further the development and exploration projects we have in partnership with Barrick Gold.”
The Company will hold a conference call on Wednesday, 26 April 2006, hosted by Ivan Koulakov, Deputy Chairman and Henry Horne, Managing Director to discuss the final results. The conference call will take place at 10:00 am UK time (1:00 pm Moscow).
To participate in the conference call, please dial one of the following numbers:
| 0800 953 1444 | U.K. toll-free number |
| 1866 220 1452 | USA toll-free number |
| +44 (0) 1452 542 300 | International dial in number |
A replay of the conference will be available after the call’s completion for a period of one week by calling one of the numbers below and quoting Conference ID 8509755#:
| 0800 953 1533 | U.K. toll-free number |
| 1866 247 4222 | USA toll-free number |
| +44 (0) 1452 550 000 | International dial in number |
A copy of the presentation will be available on www.highlandgold.com.Financial Calendar
| Post 2005 Annual Report | 12 May 2006 |
| Annual General Meeting | 07 June 2006 |
| 2006 Interim Announcement | September 2006 |
| 2006 Interim Report and Accounts | October 2006 |
| Enquiries: | London: +44 (0) 207 851 6400 |
| Moscow: +7 (495) 777 5529 | |
| +7 (495) 723 5836 | |
| E-mail: info@highlandgold.com | |
| Henry Horne, Managing Director | |
| Dimitry Yakushkin, Director of Communications |