Highland Gold maintains guidance after decent third quarter

Highland Gold Mining released its operating results for the three months ended 30 September on Monday, reporting that its four operating mines produced a total of 75,038 ounces of gold and gold equivalent in the third quarter, rising from 74,826 at the same time last year.

The AIM-traded firm said total production for the first nine months of 2019 was 217,298 ounces of gold and gold equivalent, which was an increase of 7% from 203,747 ounces in the first three quarters of last year.

Production at Mnogovershinnoye (MNV) and Belaya Gora in the third quarter was lower year-on-year, which the board put down to decreases in processing volumes and grades, but it added that output at MNV was 10% higher for the year-to-date.

Novoshirokinskoye (Novo) saw improved grades in the third quarter, with quarterly output returning to last year's level after a weaker first half.

Preparations for pre-stripping at Kekura commenced in the final days of the quarter, with the first blast occurring in early October, as the company begins early mining at the site.

“The company's board of directors gave a green light to the Baley ZIF-1 Tailings heap leach project,” Highland Gold noted in its statement.

“Construction will begin next year with first gold expected in the second half of 2021.

“Improved medical facilities and personnel were rolled out at each of the company's operating sites,” it added.

Highland Gold employees collected more than three tonnes of plastic for recycling as part of a company-wide initiative that began in June of this year, the board also reported.

Its average realised gold price was $1,483 per ounce in the third quarter, and the board affirmed its 2019 production forecast of between 290,000 and 300,000 ounces of gold and gold equivalent.

As at 1202 BST, shares in Highland Gold Mining were up 2.11% at 198.4p.