Interim Results Announcement for H1 2016
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Highland Gold Mining Limited (“Highland Gold”, the “Company” or “Group”) today reports its unaudited financial results and production figures for the half year ended 30 June 2016 ("H1").
|IFRS, US$000 (unless stated)||H1 2016||H1 2015|
|Gold sold (gold and gold eq. oz)||127,697||119,277|
|Total Group cash costs (US$/oz)||444||538|
|Group all-in sustaining costs (US$/oz)||609||710|
|EBITDA margin (%)*||54%||42%|
|Earnings per share (US$)||0.113||0.044|
|Net cash inflow from operations||18,814||18,153|
|Net debt position*||197,900||232,427|
The interim condensed consolidated financial statements of Highland Gold for the six months ended 30 June 2016 are set out below.
H1 2016 HIGHLIGHTS
- Total first half revenue rose 13% year-on-year to US$147.1 million, reflecting improved metals prices and increased sales volumes during the period.
- H1 2016 EBITDA was US$ 79.7 million, an increase of 45% over H1 2015, while EBITDA margin rose to 54%.
- All-in sustaining costs (AISC) per ounce fell by 14% to US$609/oz, assisted by ongoing weakness in the rouble and strict cost controls.
- Free cash flow (defined as net cash flows from operating activities less cash flows used in investing activities) was US$60.7 million.
- INet debt to EBITDA ratio reduced to 1.3 as of 30 June 2016 versus 1.7 as of 31 December 2016 as the Company directed free cash flow to debt repayment.
- Total H1 2016 production of 128,671 oz of gold and gold equivalent at Mnogovershinnoye (MNV), Novoshirokinskoye (Novo), Belaya Gora, and Sredny Golgotay (Kaftan site), an increase of 6% from 121,242 oz in H1 2015.
- MNV and Novo exceeded internal production targets for the quarter, while at Belaya Gora efforts to optimise operations were ongoing.
- Exploration work continued on the Northern ore body at MNV, with reserves expected to receive approval from regulators by year-end.
- Work commenced on the planned expansion of processing capacity at the Novo mill.
- Pre-feasibility study completed for Kekura, and a subsequent fatal flaw review supported open pit and underground mine design plans.
- Scoping studies initiated for the Baley Cluster Projects (Taseevskoye, Sredny Golgotay and ZIF-1 tailings) and Unkurtash, and a revised pre-feasibility study initiated for Klen.
POST HALF YEAR EVENTS
- Interim Dividend of £0.05 per share approved by the Board of Directors
- The Company affirms its forecast for total production of gold and gold equivalent of 255,000-265,000 oz for the full year.
CONFERENCE CALL DETAILS
The Company will hold a simultaneous webcast and conference call to discuss the results, hosted by CEO Denis Alexandrov, on Monday, 26 September 2016 at 10:00 UK time (12:00 Moscow).
This event is being streamed. It is recommended that you listen via your computer speakers. The link for online registration is: http://engage.vevent.com/rt/webcasting/index.jsp?seid=746
To register to participate by telephone and to receive local dial-in numbers, please follow this link: http://emea.directeventreg.com/registration/87650126
For further information please contact:
+ 7 495 424 95 21
Duncan Baxter, Non-Executive Director
+ 44 (0) 1534 814 202
|Numis Securities Limited
(Nominated Adviser and Joint Broker)
|John Prior, James Black
+44 (0) 207 260 1000
|Peat & Co
+44 (0) 207 104 2334