Gold miner Highland Gold said Wednesday that first-half net profit fell by almost 65 percent year on year to $17 million due to a steep fall in the gold price.
Gold, which has seen its sharpest drop in price in a generation, currently trades about $1,300 an ounce compared with a record peak of more than $1,920 two years ago.
The company, partly owned by tycoon Roman Abramovich, said it would cut its interim dividend by almost 50 percent to 2.5 pence ($0.04) per share.
Revenue was little changed compared with the first half of 2012, at $157 million, Highland Gold said, generating earnings before interest, tax, depreciation and amortization of $63 million, down 11.5 percent year on year.
"The company practices a 'no hedge' policy and metal price fluctuations will continue to affect the Group's profits in the future," Eugene Shvidler, Highland Gold's non-executive chairman, said in a statement.