Highland Gold Mining Limited ("Highland Gold" or the "Company") announces that its production guidance for the year to 31 December 2014 has been revised to 250,000 oz - 260,000 oz of gold and gold equivalents (from the previously announced range of 280,000-291,000 oz), which represents a 5-10% increase over 2013 full-year production.
Unusually extreme weather conditions in northern Khabarovsk region in recent weeks, for which the regional administration has declared a state of emergency, resulted in intermittent power and road outages as well as work stoppages at the open pit mines at Mnogovershinnoye (“MNV”) and Belaya Gora. These factors, combined with the slower-than-expected ramp-up of operations at Belaya Gora, restricted the Company’s ability to meet its previous guidance.
The Novoshirokinskoye (“Novo”) mine, located in Zabaikalsky region, is not affected and continues to meet or exceed production forecasts.
Despite these difficulties, the Company is on track to reduce total cash costs for the full year to approximately $650/oz versus $689/oz in H1 2014.
For further information please contact:
John Mann, Head of Communications
Duncan Baxter, Non-Executive Director
|Numis Securities Limited:
(Nominated Adviser and Joint broker)
|John Prior, James Black,
+44 (0) 207 260 1000
|Peat & Co
( Joint Broker)
+44 (0) 207 104 2334