The Russia-focused group reported a 25 per cent drop in underlying earnings (EBITDA) following a rise in cost to US$804 per ounce of precious metal produced.
Broker Numis, which was expecting EBITDA of around US$75 million, pointed out the group has a very strong balance sheet with around US$151 million cash and equivalents.
More to the point Highland has restored the dividend, which marks out from many developing miners in the gold sector.
Numis also points out that full-year production guidance remains intact at between 200 and 215,000 ounces of gold.
Analyst Cailey Barker says Highland’s “defensive growth story remains compelling at these levels”, with the stock trading at a cheap-as-chips 0.8 times its net asset value.
The stock remains a ‘buy’, though the price target inches down to 195 pence a share from 200 pence.
At 11.00 am, the stock had registered a 0.25 pence loss to trade at 124.25 pence. It values Highland at just over £400 million. The year high was just over 200 pence.