Preliminary Results for the Year Ended 31 December 2004



  FY 2004

(unless stated)
FY 2003

(unless stated)
% Change
Production (ounces) 199,896 194,000 3%
Turnover 82,062 71,578 15%
EBITDA 25,610 32,264 -21%
Operating profit 18,784 27,892 -33%
Profit before tax 14,229 24,632 -42%
Net profit 5,011 18,049 -72%
Earnings per share 4 cents 16 cents -75%
Net cash flow from operations 10,455 7,602 37%
Capital expenditure 69,168 56,883 22%
Dividend per share 2 cents 3 cents -33%
  • Gold production for 2004 was 199,896 ounces (MNV 195,026; Darasun 4,870)
  • Acquired 3 important licenses for the Talatui, Novoshirokinskoye and Taseevskoye deposits
  • Significant progress on the Mayskoye and Novoshirokinskoye feasibility studies
  • US$140 million raised through two share issues
  • Total Group assets increased by 72% to US$337 million
  • Alex Davidson, Executive Vice-President of Barrick Gold appointed to our Board
  • Strengthened strategic partnership with Barrick Gold

Commenting on today’s results, James Cross, Chairman said:

“Looking back over the past twelve months, I believe that Highland Gold has matured in many ways and that the valuable experience gained along the way will serve us well into the future as we continue the development of our strong asset base and our strategic relationship with Barrick Gold. “Going forward, our major challenges will be cost containment and the completion of the feasibility studies associated with our development projects. The Board has full confidence in our management team and their ability to deliver the tasks ahead.”

Commenting on today’s results, Dmitry Korobov, Managing Director said:

“Having been appointed Managing Director of Highland Gold in early 2005 I am delighted to be leading our team of 3,700 people with operations spread across three vast regions of Russia. My challenges are to ensure our operating mines are being run effectively and to steer our development projects through to production and profitable growth for our shareholders, employees and other stakeholders.”

Financial Calendar

Annual General Meeting 31 May 2005
Ex-Dividend date 27 April 2005
Record date 29 April 2005
Dividend date 3 June 2005


Enquiries: +44 (0) 20 7404 5959
Highland Gold James Cross, Chairman
  Dmitry Korobov, Managing Director
  Denis Alexandrov, Finance Director
  Dimitry Yakushkin, Director of Communications
  Grant Sinitsin, Director of Investor Relations
Brunswick Andrew Garfield, Mark Antelme

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