Final Results for the Year Ended 31 December 2010

27.04.2011

Highland Gold Mining Limited ("Highland Gold" or the "Company" AIM: HGM) announces its final results for the full year ended 31 December 2010.

FINANCIAL HIGHLIGHTS

IFRS, US$000 (unless stated) 2010 2009
Production (oz) 200,028 163,208
Total cash costs at MNV (US$/oz) 496 486
Revenue 243,629 164,747
Gross profit 119,365 63,504
EBITDA 121,271 57,101
Earnings per share (US$) 0.376 0.242
Net cash inflow from operations 94,620 45,110
Capital expenditure 36,944 32,020
Cash and short term investments 222,470 242,969

2010 Key Events

  • Company met production guidance by producing 200,028 oz of gold and gold equivalents, a 23% increase on 2009
  • EBITDA of US$121.3 million (2009: US$57.1 million) was 112.4% higher than the previous year due to higher production and realized prices
  • At US$496 per ounce in 2010, total cash costs at MNV were well contained (2009: US$486) considering the higher royalties paid due to the higher gold price
  • Novo continued to ramp up mining and processing with a steady decrease in cash costs of US$597 in 2010
  • JORC compliant audit supports GKZ reserve at Belaya Gora of 0.82 million oz
  • Commissioning of mining at Belaya Gora
  • Continued to develop the ore processing flow sheet for Taseevskoye
  • Development accelerated at two advanced stage exploration projects (Unkurtash and Lyubov)
  • New acquisitions in 2010 included Blagodatnoye and Belaya Gora Flanks
  • Cash, short term deposits and short term investments were US$222.5 million at 31 December 2010, after the early repayment of US$66.2 million of debt in 2010

Post Year End

  • Group currently debt free after early repayment of all outstanding loans
  • Initial C1+C2 reserves of 1.71 million oz at Unkurtash are with Kyrgyzstan GKZ for approval

The Annual General meeting will be held on 16 June 2011

www.highlandgold.com

The Company will hold a conference call on Wednesday, 27 April 2011 hosted by Valery Oyf, 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 60199850

 

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: 60 19 98 50 #

 

For further information please contact:

Highland Gold

Duncan Baxter, Chairman + 44 (0) 1534 814 202

Dmitry Yakushkin, Head of Communications +7 495 4249521

Fin International

Alex Glover, +44 (0) 20 7608 2280

Matrix (Nominated Adviser and Broker)

Robin Henshall, +44 (0) 20 3206 7172

Tim Graham, +44 (0) 20 3206 7206