Highland Gold Mining

Russia-focused Highland Gold Mining says its combined first-half production rose 10% to 86,505 oz of gold and gold equivalents.

In a new trading update, the Jersey-based company indicates output from its flagship Mnogovershinnoye (MNV) mine in Russia's Zhabarovsk region fell 3.3% to 75,771 oz at 5.3 grammes of gold per tonne of ore in the six months to June, but first production of 10,734 attributable oz at 5.38 grammes a tonne from the 48.3%-owned Novoshirokinskjoye mine in the Zabaikalsky region enabled the company to show an increase.

Elsewhere, AIM-quoted Highland says its Bela Gora project in Khabarovsk is poised to go into open-pit production, with 100,000 tonnes of ore to be processed at MNV in the second half year. Overall, Highland declares it is on track to produce between 200,000 and 210,000 oz of gold this year.

Analysts reckon Highland, which last year turned a £71.5m loss into £56.5m profits, could make nearly £65m pre-tax for 2010. Floated at 190p in 2002, Highland shares reached 332p in 2006 before later collapsing to 38p.

Highlighted by Growth Company Investor at 44p in 2008, they have now reached 119p, up 23p this morning. Partial profit-taking might be prudent, while retaining some for possible further recovery.