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MOSCOW, April 28 (Reuters) - Highland Gold Mining Ltd, a Russian miner part-owned by billionaire Roman Abramovich, swung to a net profit of $18.1 million in 2007 after selling more gold at higher prices and divesting a loss-making mine.
Highland (HGM.L: Quote, Profile, Research), which produced 3 percent of Russia's gold last year, said on Monday it would keep output steady this year at its single operational mine before launching production from a lead-zinc deposit in the fourth quarter and two further gold projects in 2010.
Highland's London-listed stock, which has leaped from lows around 75 pence seen six months ago, was up 3 percent at 194p by 1117 GMT.
"It's a pretty interesting investment story, but it's a story not without risk," said Troika Dialog mining analyst Mikhail Stiskin.
Highland said in a statement its 2007 profit reversed the previous year's net loss of $94.9 million.
Chairman James Cross said Highland benefited from its policy not to hedge sales as gold prices rose. Turnover on the 150,427 ounces sold in 2007 was $112.1 million, up from $92.0 million a year earlier, and its average sales price was $708 per ounce.
Highland, Russia's fifth-largest gold miner last year, operates the Mnogovershinnoye mine near Russia's Pacific coast and is developing several other projects. The company increased total capital expenditure 76 percent to $68.6 million last year.
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