StockMarketWire.com - Highland Gold Mining has lowered its full year production guidance to 250,000 oz - 260,000 oz of gold and gold equivalents.

This is down from the previously announced range of 280,000-291,000 oz but is 5-10% above 2013 production.

The company says 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.

Highland Gold says the Novoshirokinskoye (Novo) mine, located in Zabaikalsky region, is not affected and continues to meet or exceed production forecasts.

The company says that despite these difficulties, it is on track to reduce total cash costs for the full year to approximately $650/oz versus $689/oz in H1 2014.


At 9:16am: [LON:HGM] Highland Gold Mining Ltd share price was -0.87p at 32.13p



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