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Highland Gold confirms FY output target

The Russian gold miner reported a 9.5% rise in gold equivalent production in the first half of 2012 on Friday and confirmed it was on track to meet full year guidance.

Posted: Friday , 10 Aug 2012

MOSCOW (Reuters) - 

Russian gold miner Highland Gold is on track to meet its full-year output target of 200,000-215,000 troy ounces of gold and gold equivalents, the company said on Friday, after reporting a strong first-half performance.

In the first six months of 2012 gold equivalent production - a measure of gold and other metals expressed in units of gold - rose 9.5 percent, year-on-year, to 101,900 ounces, Highland said.

The company, which produces gold from Mnogovershinnoye, Novoshirokinskoye and Belaya Gora mines in Russia, added its average gold sale price increased 13 percent, year-on-year, to $1,641 per ounce.

The gold price rose 3 percent this year in London and was at $1,607.50 an ounce by 0739 GMT. It remained on track for a second weekly gain in three weeks, bolstered by hopes China could move to stimulate growth.

Highland Gold added that its total JORC compliant resources reached 12.9 million ounces and were up 16 percent compared to the end of 2011.

In 2011 Highland Gold missed output forecast, producing 184,102 ounces of gold and gold equivalents.

Highland Gold shares were up 0.43 percent at 117 pence at 0742 GMT in London.

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