PUNT OF THE WEEK: Russia-focused miner and explorer Highland Gold

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PUNT OF THE WEEK: Russia-focused miner and explorer Highland Gold is backed by Roman Abramovich

What is it?

Roman Abramovich-backed and AIM-listed Highland Gold is a miner and explorer focused on Russia. It has four mines, as well as several development and exploration projects.

What’s the latest?

Last month it said profits in 2019 rocketed 47 per cent to £130million and it produced 12 per cent more gold than the year before. Production and sales have been unaffected by the coronavirus.

Who backs it?

Executive chairman Eugene Shvidler is the largest shareholder with 12.3 per cent and his best friend, Abramovich, has a 10 per cent stake. Morgan Stanley and JP Morgan are among the institutional backers.

Why should you invest?

John Meyer, head of research at SP Angel, said: ‘Highland is a well-established gold producer and dividend payer in the sector.’ 

It has benefited from a surge in gold prices amid last year’s tensions between the US and China and more recently the coronavirus.

And why shouldn’t you?

Meyer adds: ‘If Western economies recover quickly then gold prices may pull back, eroding the high margins which Highland is currently enjoying.’

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