Nordgold Announces Q1 Financial and Operating Results

London, United Kingdom, 23 May 2018 - Nord Gold SE (“Nordgold” or the “Company”), the internationally diversified gold producer, announces its financial and operating results for the first quarter ended 31 March 2018.

“As expected, this has been a softer quarter for Nordgold, as we mine lower grade ore blocks in our larger mines in line with the mine plan and continue to invest in the construction of our next major project, Gross mine in Russia. I am pleased to confirm the Gross construction is on time and on budget. We expect to begin production later this year and for the mine to make a meaningful contribution to overall production in the second half of 2018. Our next major greenfield project, Montagne d’Or in French Guiana, is also progressing well. We will apply for appropriate mining and construction approvals this year. Montagne d’Or has the potential to be an outstanding asset and significant contributor to the French Guiana economy, both in terms of employment and taxes, as well as generating value for Nordgold shareholders.”

Nikolai Zelenski, Chief Executive Officer, Nordgold

Q1 2018 Highlights

  • In Q1 2018, refined gold production of 225.1 thousand gold equivalent ounces (“koz”) was 6% lower year-on-year (“YoY”) and 10% lower quarter-on-quarter (“QoQ”).
  • Revenue increased by 2% YoY to US$300.0 million in Q1 2018, mainly as a result of the higher average realised gold price. QoQ revenue decreased by 6% due to lower sales volumes.
  • EBITDA of US$126.0 million in Q1 2018, was down both YoY and QoQ mainly driven by higher costs.
  • Net profit for Q1 2018 of US$42.4 million and normalised net profit attributable to shareholders (1) of US$37.4 million.
  • Operating cash flow of US$97.0 million in Q1 2018 and negative free cash flow (1) generation of US$14.4 million as a result of the continued construction of the Gross mine.
  • Total debt of US$1,000.5 million and net debt (1) of US$691.5 million at the end of Q1 2018.
  • Q1 2018 capex (1) of US$121.3 million was 96% higher YoY as result of the investments into the Gross mine construction along with the higher capitalised stripping.
  • All-in sustaining costs (1) ("AISC") was up by 19% YoY and 12% QoQ to US$1,001/oz in Q1 2018 mainly due to higher capex.
  • The Lost time injury frequency rate (LTIFR) in Q1 2018 improved to 1.05 compared with 1.70 in Q1 2017 and 1.20 in Q4 2017.
  • Nordgold
    Andrei Naumov
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    Andy Jones
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  • (1) For detailed definition, please see “Non-IFRS Financial Measures”.
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