Gold prices drive Highland Gold profits up

Highland Gold, the London listed Russian focused gold miner, has posted a 1H 2011 net profit of $70.3 million under IFRS.

The bottom line was up from the 1H 2010 net result of $23.3 million, with EBITDA increasing year on year to $88.1 million from $46.7 million posted for the same period in 2010 , and group revenue up 57.3% year on year from $100.5 million in 1H 2010 to $158.1 million for 1H 2011 driven by a growth of gold sales in volumes to 104.9 ounces from 86.090 ounces.The company said the higher net profit was driven by higher production, resulting in higher gold sales volumes, and by significantly higher average gold sales prices. The company also incurred higher royalty costs which are tied to the increase in the spot gold price.