Interim Results Announcement for H1 2009


Highland Gold Mining Limited ("Highland Gold", or the "Company") announces its production and financial results for the half year ended 30 June 2009.

Financial Summary


Financial (US$ millions)
H1 2009 H1 2008 restated
Turnover 78.8 76.5
Cash inflow from operating activities 18.3 11.0
Group Operating profit 19.4 14.0
Net profit from Continuing operations 39.6 22.4
Profit for the period 38.1 22.4
Diluted earnings per share from continuing operations (US$/share) 0.121 0.069
Capital expenditure 15.7 43.7
MNV - Gold recovered (ounces) 78,421 68,813
MNV - Gold sold (ounces) 83,860 81,036
MNV - Cash operating cost (US$/ounce sold) 457 517
MNV - Total cash cost (US$/ounce sold) 514 574

First Half Highlights

  • Group profit after tax of US$38.1 million, a 70% increase compared to H1 2008 (US$22.4 million)
  • Cash and short term deposits of US$294.8 million at 30 June 2009
  • Mnogovershinnoye produced 78,421 oz of gold, a 14% increase compared to H1 2008
  • Novoshirokinskoye on schedule for commissioning by 1 October 2009
  • Taseevskoye development project doubles C1+C2 reserves and Belaya Gora exploration project moves to the development stage after State Reserves Committee (GKZ) approves reserves at both properties
  • Unkurtash exploration project calculated at 2 million oz of C1+C2 reserves with potential upside estimated at 5 million oz of gold

Commenting on today's announcement Duncan Baxter, Non-Executive Chairman said: "The investments made at MNV continue to bear fruit as reflected in the strong performance from the mine in the first half of the year. Our joint venture project Novoshirokinskoye is on track to become our second producing mine and will be commissioned by 1st October. We are making good progress with the Taseevskoye development project and our Belaya Gora exploration project, while Unkurtash with its multi-million ounces holds strong potential to increase our resource base substantially. Highland's strategy of concentrating its efforts on maximising output from producing assets, the development of its near term production projects and on seeking out new acquisitions continues."

Conference call

Highland Gold will hold a conference call hosted by Valeryi Oif, CEO. The conference call will take place at 10.00 am London time on 22 September 2009. To participate in the conference call, please dial one of the following toll-free numbers:

UK Free Call 0800 694 0257
UK Standard International +44 (0) 1452 555 566
USA Free Call 1 866 966 9439
Russian Free Call 8 10 800 2 097 20 44
Conference ID 31 831 483

A recording of the presentation will be accessible on the company website 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 15 33
UK Local Dial In: 0845 245 5205
USA Free Call Dial In: 1866 247 42 22
Encore Replay Access Number: 31 831 483 #

Encore Replay will be available until 28 September 2009

The Interim Report to 30 June 2009 will be available on our website.