By Ikaba Koyi
Date: Monday 04 Sep 2017
LONDON (ShareCast) - (ShareCast News) - Highland Gold Mining reported flat revenues for the first half of 2017 despite increased gold output at its three producing mines, Mnogovershinnoye, Novoshirokinskoye and Belaya Gora.
Gold sold from the mines during the period rose 0.06% to 128,503oz. alongside a 2.4% increase in total output to 131,784oz. and two new additional exploration licences were received for two areas within close proximity to the Mnogovershinnoye mine.
Yet the outfit's all-in sustaining costs rose from $609/oz. in the year ago period to $674/oz. due to a stronger Russian rouble and lower average grades at Belaya Gora.
As a result, while total first half revenues remained broadly flat year-on-year at $147.2m, EBITDA decreased 8.1% to $73.2m, with the company citing rouble strength, higher production costs and utilisation of low-grade ore at BG as the chief reasons behind the decline in the latter.
At the EBITDA level, margins slipped from 54% to 50%.
In parallel, the firm's net debt to EBITDA ratio rose marginally to 1.30 as of 30 June 2017 compared to 1.26 as of 31 December 2016 when net debt was $205.5m.
On a more positive note, Highland reiterated its forecast for total full-year gold production of between 255,000oz. and 265,000oz..
The board of directors set an interim dividend of 4.98p per share.
As of 10:05 BST, the company's shares were down -3.64% to 158.75p.
|52 Week High||301.00p|
|52 Week Low||150.60p|
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