Highland Gold increase the profit of Abramovich.
Highland Gold Mining is a gold mining company of Britain which has a permit to mine gold in several fields in Russia. As it's known, one of the company's shareholders is Roman Abramovich, who led the company to the Russian market. Back in 2007, 7 years ago, Roman Abramovich bought 40% of shares of Highland Gold Mining, which amounted to $ 400 million. Analysts previously considered this project underestimated, and it was confirmed by the first half-year reports.
By the results of the report of the company for the first half of 2014, it is obvious that its investments in the Russian gold deposits have become a successful business for the profit increase. According to the report, the net profit of the first half of this year increased to $ 20.3 million with the help of one-time payment that amounts to 19%. From reinvestment in bonds the company was able to make a profit equal to $ 4, 6 million. The company was also could earn $5, 6 million reducing the cost of a commercial transaction for the acquisition of deposits in the Far East, namely in Chukotka.
However, the price of gold in the world market has shown a decline, which immediately affected the income of Highland Gold Mining, which fell to $ 142 million, that is 9%. The volume of income before taxes, depreciation expense and interest on loans (EBITDA) also showed a decrease of 22%. The company has reduced its forecast for gold production by 3-7%. Currently, the Western sanctions against Russia are not affected the production of Highland Gold. However, if there will be some restrictions on the import of products and there will be not enough international capital, it can have a negative impact on the company's economy and on increasing of the profit.
Highland Gold shows by its own example that the proper business conducting, the ability to use all the modern tools, as well as to focus in the market, are the assistants for a successful business and the profit increase. These principles are known to the customers of Emgoldex, moreover, they use them skillfully in their gold business.
Category: Gold news Publication date: 2014-10-14 09:32
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