Russian gold miner Highland Gold posted an 18.9% rise in half-year revenue to $174.7-million, reflecting the contribution from its newly acquired Valunisty mine and increased sales volumes at its Mnogovershinnoye (MNV) operation.

Earnings before interest, taxes, depreciation and amortisation (Ebtida) increased by 21.8% on the prior-year period to $86.5-million, while the Ebitda margin was stable at 50%, compared with 49% a year earlier.

Highland produced 142 254 oz of gold and gold equivalent in the first half of the year, an increase of 10.3% from 128 921 oz in the first half of 2018.

The inclusion of Valunisty and higher maintenance spend for the purchase of new equipment pushed up the all-in sustaining cost to $778/oz, from $697/oz in the prior-year period.

Net profit rose from $28.6-million in the first half of 2018, to $45.7-million in the period under review.

"Highland Gold achieved solid half-year financial performance, buoyed by stable gold prices and a weaker rouble, despite higher maintenance capex for replacing older equipment due to the extension of life-of-mine at our key production assets, and higher costs at our newest mine, Valunisty, which we are now focusing on bringing in line with our other operating assets,” said CEO Denis Alexandrov.

He added that Highland expected higher production levels and stronger operating cash flow in the second half of 2019, as well as continued progress on construction at its key development project, Kekura, and on its ongoing projects to improve operations at each of its existing mines.

The company affirmed its forecast for total 2019 production of 290 000 oz to 300 000 oz of gold and gold equivalent.

The board approved an interim dividend of £0.05 a share.

The miner also reported senior independent director Terry Robinson had passed away on August 16 after a brief illness.