Interim Results Announcement for H1 2007
24.09.2007
Highland Gold Mining Limited ("Highland Gold", or the "Company") announces its production results and unaudited financial results for the half year ended 30 June 2007.
Financial Summary
For all periods up to and including the year ended 31 December 2006, Highland Gold Mining Limited prepared its financial statements in accordance with UK GAAP. From 1 January 2007, the Group is required to prepare its consolidated financial statements in accordance with IFRS as adopted by the EU. This change applies to all financial reporting for accounting periods beginning on or after 1 January 2007. Consequently, the Group's first IFRS results are its unaudited interim results for the first half of 2007 and the Group's first Annual Report and Accounts under IFRS will be for the year ending 31 December 2007. As the Group publishes comparative information in its Annual Report and Accounts, the date for transition to IFRS is 1 January 2006, this being the start of the earliest period of comparative information.
| H1 2007 | H1 2006 | |
| Financial (US$ millions) | ||
| Turnover | 43.4 | 47.1 |
| Cash outflow from operating activities | (26.0) | (1.3) |
| Group Operating profit | 4.2 | 7.8 |
| Net profit from Continuing operations | 5.7 | 8.4 |
| Profit/(loss) for the period | (2.8) | 0.8 |
| Diluted earnings per share from continuing operations (dollars/share) | 0.029 | 0.051 |
| Capital expenditure | 19.3 | 15.4 |
| Operating | ||
| MNV – Gold sold (ounces) | 62,643 | 75,594 |
| MNV – Cash operating cost ($/ounce sold) | 417 | 274 |
| MNV – Total cash cost ($/ounce sold) | 458 | 313 |
First Half Highlights
- US$5.7 million net profit from continuing operations
- Integrated new management team from Barrick Gold
- Completed MNV and Novo operations and engineering audits
- Successful implementation of initiatives started
- Debt restructuring established US$135 million of new low-cost financing facilities which extend the Group's debt portfolio maturity profile to 2011
- Darasun conditional agreement finalised
- Good progress on all development and exploration projects
- Ongoing improvements in safety performance
Commenting on today's announcement Henry Horne, Managing Director said: "In the past 6 months Highland Gold made several important steps in its development. We have started transforming production at our major producing mine MNV and are already seeing the benefits from this process. We have made remarkable progress on our development and exploration projects. The conditional agreement to sell the Darasun mine, which is subject to ongoing price negotiations, once completed, will optimise considerably the operating structure of the Company. Just as important as these operational issues has been the restructuring of our finances to provide a more stable and well funded business going forward.
It is with regret that Highland Gold announces that after almost 12 years with Barrick Gold, Rene Marion has resigned from Barrick to pursue other career opportunities in the industry. As a result, Rene will be stepping down from the Highland Gold Board of Directors and as Chief Operating Officer effective October 24. Barrick management has confirmed that they will provide a seasoned successor to Rene in the position of Chief Operating Officer prior to Rene's departure to ensure a smooth transition.
Barrick has nominated Scott Perry, Highland Gold's Chief Financial Officer, to replace Rene on the Highland Gold Board of Directors and a further announcement will be made in that regard.
We wish Rene the very best for the future and thank him for the valuable contribution he has made towards the development of Highland Gold."
Conference call
Highland Gold will hold a conference call hosted by Deputy Chairman Ivan Kulakov, COO Rene Marion and CFO Scott Perry at 10.00am GMT on 24 September 2007. To participate , please dial one of the following toll-free numbers:
| 01296 317500 | United Kingdom |
| +44 1296 317500 | International Dial In |
| Passcode 835707 |
The Interim Report to 30 June 2007 will be available on our website from 30 September