Gold News

Highland Gold Mining on the rocks

Russia's fourth-largest gold mining company, Highland Gold Mining, has announced significant losses in net profit for the first half of 2007.

Profits from continuing operations over the first half of the year fell a dramatic 32 per cent to sink as low as $5.7 million, on the back of poor turnover which fell eight per cent between 2006 and 2007.

The losses translated into a decrease of gold sales from 75,594 ounces in the first half of 2006 to 62,643 ounces in the same period of 2007.

Highland Gold Mining attributed the decline to the need for renovation at its main holding, the Mnogovershinnoye mine, while also citing the complete halting of mining activity at the Darasun mine.

Russian miners Highland have 100 per cent ownership of the Darasun site, located in the east Russian Chita province, with its production loss causing significant problems.

The fortunes of Highland Gold Mining will be watched closely by more than just its own management - the company is 34 per cent owned by the world's largest gold mining firm, Canadian giant Barrick Gold.

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