StockMarketWire.com - Russian gold producer Highland Gold Mining posts operating profits of $55.8m for the year to the end of December - down from $77.0m last time. The group posts a net loss of $24.8m against a profit of $54.7m.

Total production at Mnogovershinnoye (MNV), Novoshirokinskoye (Novo) and Belaya Gora rose 10.8% to a record 258,937 oz of gold and gold equivalents (2013: 233,696 oz) while all-in sustaining costs fell to $809 per oz - down from $842 in 2013.

The results include impairment of Klen goodwill and other long-term assets of US$11.4m due to postponement of project development; a $9.6m foreign exchange loss and $49.4m non-cash deferred tax charge.

Chairman Eugene Shvidler said: ""In 2014, Highland Gold began commercial production at its third mine, Belaya Gora, while reaching record output at Novoshirokinskoye, continuing efforts to extend the life-of-mine at Mnogovershinnoye, and taking important steps in the process of bringing the Kekura project to fruition.

"The company achieved record output while maintaining fiscal discipline, despite the ongoing challenges faced by the industry.0

"While we recorded a net loss for the year due to one-off charges, the Company's underlying fundamentals remain sound even against the backdrop of lower gold prices. The board and I are confident that 2015 will see further improvement in our operational performance."




At 8:02am: [LON:HGM] Highland Gold Mining Ltd share price was -1.25p at 40.25p



Story provided by StockMarketWire.com