Nordgold Reports Q2 and H1 2015 Operating Results
Amsterdam, Netherlands, July 22, 2015 - Nord Gold N.V. (“Nordgold” or the “Company”, LSE: NORD), the internationally diversified low-cost gold producer, announces a 7% increase in gold output to 507.5 thousand gold equivalent ounces (“koz”) and 4% growth in revenue to US$644.6 million in H1 2015.
- Gold production in H1 2015 increased by 7% year-on-year (“YoY”) to 507.5 koz mainly due to higher ore mined and processed volumes, as well as higher recovery.
- In H1 2015, production increased at Bissa, Lefa, Berezitovy, Neryungri, Suzdal and one of the Buryatzoloto underground mines, Irokinda.
- In Q2 2015, gold output was 240.8 koz. The prior quarters’ refined gold production of 266.7 koz included 28.5 koz of gold doré produced but not refined at the end of 2014, which was refined in Q1 2015.
- Based on the robust operating performance delivered in H1 2015, the Company is targeting the upper end of the full year 2015 production guidance range of 925 – 985 koz.
- Lost time injury frequency rate (LTIFR) for Q2 2015 was 1.79, an improvement of 39% compared with Q1 2015 (2.95), but higher than in Q2 2014 (1.08).
- The average realised gold price in H1 2015 was US$1,213 per oz compared, with US$1,295 per oz in H1 2014. In Q2 2015, the average realised gold price was US$1,200 per oz, compared with US$1,292 per oz for Q2 2014 and US$1,224 per oz for Q1 2015.
- Despite a lower gold price, revenue in H1 2015 increased by 4% to US$644.6 million compared with US$617.0 million in H1 2014 due to higher gold production and sales volumes, which included 24.5 koz of refined gold and 28.5 koz of gold doré, which were produced in the end of 2014 and sold in Q1 2015. Revenue in Q2 2015 was US$289.0 million.
- Unaudited net debt at June 30, 2015 was approximately US$546.0 million compared with US$528.7 million at the end of Q1 2015 and US$627.3 million at the end of 2014, reflecting positive free cash flow generated and dividend payment of US$24.2 million in Q2 2015 on the back of Q1 2015 results.
- During the period, Nordgold has also further strengthened its operating team with the appointment of Michael Monaghan as Mining Director, from Akara Resources, subsidiary of Kingsgate Consolidated.
Message from the CEO
“I am pleased to report another strong period of operational performance. We have remained absolutely committed to our strategy – a continued focus on costs, operational efficiencies and production improvements which have enabled us to consistently deliver robust free cash flow. It is this focus on operational delivery that gives us the confidence in achieving the higher end of our full year product target range of 925-985koz.
“Looking ahead, we benefit from three well defined exciting growth projects that will require modest development capex. Two of them, Bouly and Gross, are extensions to existing mine sites and are ready for construction. We will progress these projects towards production, while remaining faithful to our strategy: keeping a very close control over costs, and continuing to drive further operational improvements. I am confident in the outlook for the Company and our ability to generate consistent growth and sustainable returns for our shareholders.”Nikolai Zelenski, Chief Executive Officer, Nordgold