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Highland Gold Mining Ltd

Highland Gold sees lower production in third quarter

The firm produced 63,096 ounces in the three months to September 30

A gold pour
The firm mines for the yellow metal at four sites in Russia

Russia-focused gold miner Highland Gold Mining (LON:HGM) saw shares dig lower on Thursday as output fell in the third quarter.

The firm produced 63,096 ounces in the three months to September 30 -  11% less than the same period in 2015 - of 70,864 ounces.  The average realised gold price  for the quarter was US$ 1,335 an ounce.

The firm mines for the yellow metal at four sites in Russia.

At its Mnogovershinnoye (MNV)  operation, higher grades from underground mining resulted in an overall 1.7% increase in grades at the mill compared to last year, and an increase of 4.7% compared to the second quarter. Gold produced was 24,837 ounces against 24,766 in the same period of 2015.

But there was lower output at the Belaya Gora mine due to management's decision to process lower grade stockpiles while contractor SRK develops updated mining and processing plans.

The group's output here was 9,637 ounces down from 18,557 ounces the year before.

At Novo, production was 28,112 ounces (2015: 27,541 ounces)  and at a pilot project of the Kaftan site   510 ounces were produced.

The firm did however repeat its forecast for total production of gold and gold equivalent of between 255,000 and 265,000 ounces for the full year.

Shares fell 3.7% to 162.5p.

Quick facts: Highland Gold Mining Ltd

Price: £2.14

Market: AIM
Market Cap: £779.35 m
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