Final Results for the Year Ended 31 December 2007

28.04.2008

Highland Gold Mining Limited "Highland Gold" or the "Company" announces its final results for the full year ended 31 December 2007.

View the full announcement(PDF - 411 Kb)

FINANCIAL HIGHLIGHTS

IFRS, US$000 (unless stated) 2007 2006

 

Production (oz)
156,474 151,146

 

Total cash costs
480 402

 

Turnover
112,100 91,980

 

Profit before tax
17,417 25,141

 

Profit from continuing operations
12,216 13,629

 

Profit/(loss) from a discontinued operation
5,883 (108,518)

 

Profit/(loss) for the year
18,099 (94,889)

 

Earnings/(loss) per share (basic)
0.091 (0.587)

 

Net cash outflow from operations
(30,198) (2,321)

 

Capital expenditure
68,603 38,911

 

Net cash flow (outflow)
179,699 (1,994)

2007 Key Events

  • Mnogovershinnoye (MNV) produced 156,474 ounces of gold in 2007, an 3.5% increase from 2006
  • Millhouse LLC becomes a new major shareholder owning 40%
  • Taseevskoye pre-feasibility study completed
  • Successful debt refinancing - US$120.0 million new low cost credit facilities
  • Operational and advanced engineering audits completed at MNV and Novoshirokinskoye (Novo)
  • Novo and Mayskoye licences successfully extended
  • Darasun divestment completed
  • Encouraging exploration results at Belaya Gora

Post Year End

  • Mayskoye feasibility study completed and awaiting Board review and approval

2008 Goals

  • Commissioning of Novoshirokinskoye in Q4 2008
  • Continued investment in the optimisation of production at MNV
  • Taseevskoye feasibility study to commence in H1 2008
  • Advanced drilling programme at Belaya Gora, Lyubov and Unkurtash

Commenting on today’s announcement, James Cross, Chairman of Highland Gold Mining said:

"Highland Gold has the financial resources, the technical, operational and managerial expertise to maximise production from its producing mine and to realise the potential of its development and exploration assets. Through its strong partnerships with Millhouse LLC, Barrick Gold and Kazzinc, the company is now able to achieve its long held ambition to become a significant gold mining company focusing on Russia and Central Asia - and to achieve this safely whilst respecting the environment and the communities in which it operates."

The Company will hold a conference call on Monday, 28 April 2008 hosted by Olga Pokrovskaya, Director, Henry Horne, Managing Director, John McDonough, COO, and Nina Leonova, Head of Corporate Finance, to discuss the final results. The conference call will take place at 10:00 UK time (13:00 Moscow). To participate in the conference call please dial one of the following numbers:

 

UK Local Call
:

 

0845 144 0014

 

UK Standard International
:

 

+44 (0) 1452 567 626

 

Conference ID
:

 

44307715

A recording of the presentation will be accessible on the company website www.highlandgold.com shortly after, as well as by dialing one of the following numbers:

 

International Dial in
:

 

+44 (0) 1452 55 00 00

 

UK Free Call Dial In
:

 

0800 953 1533

 

UK Local Dial In
:

 

0845 245 5205

 

USA Free Call Dial In
:

 

1866 247 4222

 

Encore Replay Access Number
:

 

44307715#

 

For further information please contact:
 
Highland Gold Mining Dmitry Yakushkin, Director of Communications - +7 495 777 3155
WMC Communications Alex Glover - +44 20 7930 9030
JPMorgan Cazenove
(Nominated Adviser)
Michael Wentworth-Stanley, Managing Director
Sam Critchlow - +44 (0) 207 588 2828

The Annual General Meeting will be held on 12 June 2008.

Highland Gold Mining Limited trades under the ticker, HGM.L