StockMarketWire.com - Highland Gold Mining's net profits fell to $25.9m in the six months to the end of June - down from $37.0m last time.

Total first half revenue was broadly flat year-on-year at $147.2m but EBITDA fell bu 8.1% to $73.2m chiefly due to a stronger rouble (average exchange rate was 57.76 RUB/US dollar in H1 2017 vs 70.23 RUB/US dollar in H1 2016), higher production costs and utilisation of low-grade ore at BG. EBITDA margin for the period was 50% versus 54% for H1 2016.

All-in sustaining costs per ounce rose to $674 from $609 in H1 2016 due to the stronger rouble and lower average grades at Belaya Gora.

The net debt to EBITDA ratio rose marginally to 1.30 as of 30 June 2017 versus 1.26 as of 31 December 2016, when net debt was $205.5m.

Total production at Mnogovershinnoye (MNV), Novoshirokinskoye (Novo) and Belaya Gora for H1 2017 was 131,784 oz of gold and gold equivalent, up 2.4% from 128,671 in H1 2016.

MNV and Novo improved on H1 2016 gold and gold equivalent production by 13% and 5.2%, respectively.






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