Roman Abramovich Mined $18 Million
Highland Gold Mining, 40 percent of which Roman Abramovich's Millhouse bought at the end of last year, has turned a profit for the first time. Its proceeds grew by 21.9 percent last year to $112.1 million for a profit of $18.1 million. The previous year, it lost $94.89 million. HGM chairman attributed that success to the fact that the company declined fixed-price hedge contracts, enabling the company to sell its gold for an average for the year of $780 per ounce. The market average was no more than $700 per ounce. HGM also sold the Darasunsky mine, where an accident caused the company a $100-million loss the year before, to the Yuzhuralzoloto company for $15 million.
The Highland Gold Mining Ltd. group, founded in May 2002, works the Mnogovershinnoe (Khabarovsk Territory), Novoshirokinskoe (Chita Region) and Maiskoe (Chukotka Autonomous Area) mines. Its share of the Russian gold market exceeds 3 percent. It produced 156,474 ounces (4.85 tons) of gold in 2007, an increase of 3.5 percent over 2006. The groups assets are managed by the Russdragmat company, which was founded in November 2002 especially for that purpose. Besides Abramovich, 20.3 percent of HGM belongs to Barrick Gold, the Canadian company that is the world's largest gold producer. The company management owns 6.6 percent of it. Its capitalization is about $1.27 billion.
Analysts note that, in order to show a profit this year, the company will have to invest last year's profit in its business, rather than paying a dividend. Nonetheless, the company's stock rose 5.18 percent on the London Stock Exchange immediately after the publication of its financial results. That gain had fallen to 4.38 percent by the evening. Investor confidence was boosted by new acquisitions by the company in Russia and Kazakhstan, although the company's expenses also rose from $350 to $480 per ounce of gold produced. The world average is $400.
www.kommersant.com
All the Article in Russian as of Apr. 29, 2008
|
