Nordgold (LSE: NORD) is an international low-cost gold producer established in 2007
- Leading emerging markets gold producer with operations in Burkina Faso, Guinea, Russia and Kazakhstan.
- Diversified asset portfolio: 9 producing mines, 2 development projects and 4 advanced exploration projects.
- Proven ability to effectively develop new projects, most recently demonstrated by the launch of the new world-class Bissa mine in Burkina Faso.
- Large JORC resource base at 29.0 Moz of gold, and reserves at 13.0 Moz with life of approximately 13 years and strong pipeline of development projects.
- Market leading growth profile with production increased from 21 koz in 2007 to 985 in 2014, showing a compound annual growth rate (CAGR) of 73%.
- World class board and management team with a commitment to high standards of corporate governance.
- Well positioned to manage the business through the period of market volatility as the company’s AISC decreased to US$887 per ounce in 2014.
- Strong free cash flow generation of US$181 million in the same period despite the lower gold price and continued focus on delivering competitive cash costs to drive long-term sustainable cash flow and deliver returns to shareholders. All mines cashflow positive.
- Commitment to a solid dividend plan: In 2014, Nordgold paid 10.31 US cents per share or per GDR in dividends, brining the total pay-out to US$39 million.
- The combination of a strong balance sheet, prudent capital management, high quality assets & development pipeline and a proven ability to manage costs make Nordgold an excellent investment opportunity.
Nordgold has a proven track record of operational improvements, sustainable organic growth and significant value creation:
The company relentless focus on costs is a key differentiator for Nordgold:
Broad geographic presence spanning 6 countries across 4 continents
9 operating mines in Burkina Faso, Guinea, Russia and Kazakhstan
Gold production increased to 985 koz in 2014 from 924 koz in 2013
On track to reach the upper half of FY 2015 gold production guidance range of 925 – 985 koz
The lower end of the global cost curve: FY2015 AISC range is US$750/oz - US$800/oz
29.0 Moz gold of resources, including 13.0 Moz of reserves
More than 8,000 employees
Bissa mine fully paid back the investment within 21 months after launch in January 2013
2014 KEY FINANCIAL HIGHLIGHTS
Revenue of US$1,216 million
EBITDA of US$487 million
TCC of US$675 per ounce
AISC of US$887 per ounce
Cash flow from operating activities of US$328 million
Positive free cash flow of US$181 million
Mainden dividend of 10.31 US cents per share/GDR, the total pay-out of US$39 million
Delivering long term growth – projects development for a sustainable future:
- Extensive and attractive exploration pipeline positioning the company for long term growth.
- Bouly is a development project located 5 km from Nordgold’s active Bissa mine in Burkina Faso. Nordgold will expand the Bissa mine with the construction of a heap leach operation at the nearby Bouly project which is expected to commence production in H2 2016. With a successful ramping up of Bouly, Nordgold will add another high-quality low-cost mine to the Company portfolio and will reach a Tier 1 status with a gold production of over 1 million ounces per year.
- Gross is another development project at an advanced stage with the potential to become the largest mine of Nordgold in Russia. Construction of Gross is expected to begin in early 2016 (subject to Board approval), with production beginning up to two years later.
- Four advanced exploration projects: in Russia (Uryakh, Prognoz), French Guiana (Montagne d'Or) and Canada (Pistol Bay).
- A diverse portfolio of early-stage exploration projects and licenses.
- In 2013-2014, Nordgold spent over US$100 million on exploration in both existing development projects, including advanced exploration projects across all its key markets.
Stock: GDRs (9.36% freefloat)
Market Cap: c. US$1,089 mln (21 April 2015)
Nordgold’s share capital is divided into 370,821,439 ordinary shares. In January 2012, Nordgold commenced trading as an independent public company via listing of GDRs on the London Stock Exchange.
Nikolai Zelenski, Chief Executive Officer
"2014 was a year of transformational performance and progress for Nordgold. Despite the backdrop of falling gold price, we have delivered both on an operational and financial level, with record gold production, a very strong EBITDA increase of 24% and over $US180 million of free cash flow.
“With all-in sustaining costs below US$900/oz, Nordgold has firmly placed itself within a quartile of lowest cost producers on the industry cost curve. The low cost production, coupled with our continued commitment to operational excellence and macroeconomic tail winds position the Company to deliver robust returns for shareholders in 2015.
“In addition to our successful operational performance, Nordgold’s diverse and dynamic development pipeline has made a strong progress in 2014, providing a solid foundation for the Company’s growth for many years to come."