Highland Gold net profit tumbles
Russian gold miner Highland Gold said first half net profit fell to $45m from $70.3m a year earlier while pre-tax profit fell by a third due to the higher cost of sales.
Russian gold miner Highland Gold said first half net profit fell to $45m from $70.3m a year earlier while pre-tax profit fell by a third due to the higher cost of sales.
The group said that it remains on track to produce between 200,000 ounces and 215,000 ounces of gold and gold equivalents in 2012.
Pre-tax profit for the half year ended June 30th 2012 fell to $57.3m compared to $85.1m for the same period a year ago. Revenue increased to $161.5m from $158.1m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
EBITDA fell to $65.7m from $88.1m before. EBITDA margin fell from 55.7% to 40.7%.
The firm, which produces gold at its Belaya Gora, Mnogovershinnoye and Novoshirokinskoye mines in Russia, said gold production increased to 101,900 ounces from 93,057 ounces. Gold sales fell to 102,036 ounces versus 104,911 ounces.
Highland Gold said it expects second half operating expenditure to remain stable or below levels during the first half due as it reduces open pit stripping ratios. It expects stable metal production at Mnogovershinnoye in second half.
Capital expenditure rose to $47.1m from $31.4m before. Diluted earnings per share increased to $0.138 from $0.215.
The group also announced a special interim dividend of £0.048 per share.
CJ
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Review: Eden Roc Cap Cana – fun, sun and golf in the Caribbean
Travel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yet
The chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry