Highland Gold Mining (LON:HGM) have told the market that they have beaten their 2019 output guidance in a relatively impressive update.
The firm said that it had been helped out at the Mnogovershinnoye mine in Russia which allowed the firm to beat expectations.
In the fourth quarter to December 31, production from Highland’s four operating mines totaled 83,429 ounces of gold equivalent, a 27% year-on-year rise from 65,753 ounces of gold equivalent.
Across 2019, total output was 300,704 ounces of gold equivalent, which saw a 12% jump from the 269,500 figure one year ago.
Notably, total output exceeded Highland’s annual production guidance range of 290,000 to 300,000 ounces.
Novo output was 5.3% lower year-on-year and at Belaya Gora and Valunisty, both also in Russia, production was down 9.1% and 20%, respectively.
Looking forward, the firm said that it expects no significant production growth across 2020 and output will remain between the 290,000 and 300,000 guidance range.
Highland Gold said: “Mnogovershinnoye outperformed expectations, with production up 9% in the fourth quarter and 10% for the full year on the back of improved grades and higher processing volume.
“Novo also exceeded its production targets for 2019, with improved fourth quarter production making up for a weaker first half, although output was lower year-on-year.”
Highland build from September success
In September, the firm saw its profits boosted by increased sales volumes.
The Company stated that its gold volume sold increased from 121,174oz for H1 2018, to 142,609oz for H1 2019. This led an increase in revenue on-year, from US$146.9 million to US$174.7 million.
Highland Gold Mining operating profit rose from $50.67 million to $57.38 million, and their net profit spiked from $28.64 million to $45.69 million. The outlook was equally positive for shareholders, with their EPS rising from $0.088 to $0.125 in a comparison of the same periods.
Russia looks fruitful for miners
Another competitor in the market, Eurasia Mining (LON:EUA) saw their shares rally following an update on their Russian operations.
Eurasia reported that it is edging closer to securing the final approval for the Tipil permit, a platinum group metals target located in Russia.
Eurasia said: “The application has been approved by the Russian federal bodies and requires only a formal meeting of the local mines commission.”
Research in Russia found that the whole of Monchetundra, which includes areas where Eurasia does not currently have a licence for, has a potential 40 million ounces of platinum group metals.
Highland Gold have made a bold statement to the market having exceeded their production targets, however the targets have remained consistent.
Shareholders can expect 2020 to be stable consistent year for Highland.
Shares in Highland trade at 182p (-0.60%). 21/1/20 14:40BST.