Nordgold Q3 and 9m Financial and Operating Results

London, United Kingdom, 7 November 2017 - Nord Gold SE (“Nordgold” or the “Company”), an internationally diversified gold producer, announces its unaudited financial and operating results for the third quarter and nine months ended 30 September 2017.

"I am pleased to report a solid operating performance year to date with particularly strong results at Bissa-Bouly, Berezitovy and Suzdal mines driving production and revenue growth. Bouly has become the largest free cash flow generator in the group in 2017, testament to the superb work of the operating team; and high quality of its design and construction.

I am also encouraged by the strong progress of our development pipeline during the period. Gross construction is progressing well – on time and on budget and we look forward to starting production in 2018. While our Gross mine construction is ongoing, we continue to generate positive free cash flow and pay dividends."

Nikolai Zelenski, Chief Executive Officer, Nordgold

Q3 and 9m 2017 Highlights

  • Refined gold production in Q3 2017 increased by 9% year-on-year (“YoY”) to 230.7 thousand gold equivalent ounces (“koz”) mainly driven by Bissa-Bouly, Berezitovy and Suzdal while gold production decreased by 7% quarter-on-quarter (“QoQ”). In 9m 2017, gold production increased by 13% YoY to 716.8 koz.
  • Revenue increased by 6% YoY to US$295.7 million in Q3 2017 and by 13% YoY to US$900.5 million in 9m 2017, mainly as a result of higher sales volumes. QoQ revenue decreased in Q3 2017 due to lower sales volumes.
  • EBITDA of US$113.2 million in Q3 2017, was down both YoY and QoQ mainly on the back of higher costs. 9m 2017 EBITDA increased by 3% to US$379.7 million supported by higher sales volumes.
  • Net profit for Q3 2017 of US$46.3 million and normalised net profit attributable to shareholders (1) of US$36.2 million. In 9m 2017, net profit decreased by 24% YoY to US$114.0 million. As previously disclosed, in H1 2016 Nordgold received the net result of the Detour Gold Corporation shares sale of US$51.0 million.
  • Operating cash flow of US$102.0 million in Q3 2017 and positive free cash flow (1) generation of US$11.2 million.
  • Total debt of US$1,003.9 million (including a derivative instrument of US$4.8 million) and net debt4 of US$668.7 million at the end of Q3 2017.
  • All-in sustaining costs (1) ("AISC") of US$998/oz in Q3 2017 up from US$889 in the previous quarter, primarily due to lower grades at Taparko, Buryatzoloto and Neryungri. 9m 2017 AISC was US$908/oz almost in line with 9m 2016.
  • 9m 2017 capex (1) decreased by 6% YoY to US$236.8 million due to lower capitalised stripping along with the completion of the Bouly mine construction while Gross mine construction continues.
  • The LTIFR declined to 0.73 in Q3 2017 compared with 1.47 in Q3 2016 and 0.94 in Q2 2017. 9m 2017 LTIFR improved by 21% to 1.12.
  • The Company is increasingly confident that it will achieve full year production toward the top end of, or even exceeding, its guidance range of 900-950 koz. Full year AISC guidance remains at US$ 900-950 per ounce.
  • For further information, please contact:

    Nordgold
    Anastasia Shatskaya
    Head of Media Relations
    Tel: +7 495 644 4473
    Powerscourt
    Peter Ogden
    Giles Read
    Tel: +44 (0) 20 7250 1446


  • (1) For detailed definition, please see “Non-IFRS Financial Measures”.
Press release
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CONTACTS

Anastasia Shatskaya

Acting Head of Media Relations
tel.+7 495 644 44 73 #707 6697

Irina Dormidontova

RECRUITMENT MANAGER
tel.+7 495 644 44 73

OLEG BAZALEEV

HEAD OF SUSTAINABLE DEVELOPMENT PROJECTS
tel.+7 495 644 4473 #707 6746