Final Results for the Year Ended 31 December 2009

30.04.2010

Highland Gold Mining Limited ("Highland Gold" or the "Company") announces its final results for the full year ended 31 December 2009.

FINANCIAL HIGHLIGHTS

IFRS, US$000 (unless stated) 2009 2008 (restated)
Production (oz)  163,208 158,885
Total cash costs (US$/oz) 486 522
Turnover 164,747 149,147
Gross profit 63,504 44,642
Profit (loss) for the year 78,843 (232,423)
Earnings (loss) per share (US$) 0.242 (0.720)
Net cash inflow from operations 44,558 24,411
Capital expenditure 31,468 147,138
Net cash flow (outflow) 23,633 (38,213)

2009 Key Events

  • Gross profit of US$63.5 million, a 42.3% increase on 2008
  • Profit after tax of US$78.8 million (loss of US$232.4 million in 2008)
  • Mnogovershinnoye (MNV) produced 163,208 oz of gold exceeding  2008 by 2.7% with total cash costs of US$486 per ounce, a 6.9% decrease from 2008
  • Cash, short term deposits and bonds of US$243 million at 31 December 2009
  • Novoshirokinskoye (Novo) polymetallic mine commissioned on 1 October 2009
  • Sale of the Mayskoye development project for US$105 million
  • Belaya Gora exploration project moved to development stage after State approval of C1+C2 reserves (820,000 oz)
  • Taseevskoye project definition and feasibility study work advanced
  • Good progress achieved at three exploration sites – Unkurtash, Lyubov and MNV

Post Year End

  • Novo mine produced and shipped first concentrates in Q1 2010
  • Belaya Gora synergies with nearby MNV mine reviewed, providing the potential for fast-tracking open pit production in Q3 2010
  • Blagodatnoye exploration prospect acquired, increases resource potential of the Belaya Gora project

2010 Goals

  • Production in 2010 (from MNV, Novo and Belaya Gora) is forecast in the range of 200,000 - 210,000 oz of gold and gold equivalents
  • Continue to develop Taseevskoye feasibility study
  • Expanding resource potential at exploration properties with increased funding commitments
  • Acquisition opportunities continue to be reviewed.

Commenting on today's announcement, Duncan Baxter, Non-Executive Chairman said: "The achievements of 2009 underline the Company’s focus on increasing the productivity of our existing producing mines and on pushing forward our development and exploration projects. We are pursuing the same strategy in 2010 and are well positioned to continue to improve the Company’s performance on all fronts as well as to continue to review opportunities to acquire producing or near producing assets in Russia and the CIS. ”

The Company will hold a conference call on Friday, 30 April 2010 hosted by Valery Oif, CEO to discuss the final results. The conference call will take place at 10.00 UK time (13.00 Moscow).

UK Local Call 0844 493 38 00

UK National Call 0871 700 0345

UK Standard International + 44(0) 14 52 55 55 66

Conference ID  7201 96 76

 

A replay of the presentation will be accessible shortly afterwards by dialing one of the following numbers: 

 

International Dial in: +44 (0) 14 52 55 00 00

UK Free Call Dial In:  08 00 953 15 33

UK Local Dial In:  08 45 245 52 05

USA Free Call Dial In: 1 866 247 42 22
Encore Replay Access Number: 72 01 96 76#

 

For further information please contact: 

Highland Gold 
Duncan Baxter, Chairman - + 44 (0) 1534 814202 
Dmitry Yakushkin, Head of Communications - +7 495 4249521 
Fin International 
Alex Glover - +44 (0) 207 608 2280 
Smith's - Investor Relations 
Dominic Palmer-Tomkinson - +44 (0) 207 239 0140 
J.P. Morgan Cazenove (Nominated Adviser) 
Michael Wentworth-Stanley, Managing Director - + 44 (0) 207 588 28 28

www.highlandgold.com

The Annual General meeting will be held on 17 June 2010.