Nordgold announces Q4 and FY 2018 financial and operating results
London, United Kingdom, 25 March 2019 - Nord Gold SE (“Nordgold” or the “Company”), the internationally diversified gold producer, announces its financial and operating results for the fourth quarter and twelve months ended 31 December 2018.
“We delivered a robust performace in 2018, a year in which we have made considerable investments in our mine portfolio to better position Nordgold for long term growth. The combination of lower grades and recoveries has had a short term impact on production and profitability, but we are confident by taking this action now, investing in both people, processes and operations, we are placing Nordgold in a strong positon to capitalise on our extensive asset base and the many opportunities we see ahead for organic growth.
We have also successfuy progressed our pipeline during the year, once again showcasing our proven ability to complete major development projects. A key highlight was the September launch of Gross mine in Russia, the third new mine we have built since 2013. The success of Gross gives us enhanced confidence in our ability to deliver Montagne d’Or, our next anticipated major growth project in French Guiana. Montagne d’Or has the potential to be a major driver of growth, providing jobs, infrastructure and revenue for the host country.”Nikolai Zelenski, Chief Executive Officer, Nordgold
- Lost Time Injury Frequency Rate (LTIFR) improved in 2018 by 16% year-on-year (“YoY”) to 0.94. Regretedly, there were two fatalities with Nordgld employees and two fatalities with the contractors at Nordgold mines in 2018.
- Refined gold production of 907.0 thousand gold equivalent ounces (“koz”) in 2018 was 6% lower YoY due to a temporary increase in the proportion of lower grade material mined, for a variety of operational reasons, and the resulting lower recoveries. Nordgold’s major mines were focused on developing pits and underground blocks to ensure operations are best positioned for optimal production in 2019 and beyond.
- Adjusted EBITDA decreased by 10% YoY to US$470.2 million in 2018 mainly due to lower production and higher costs associated with temporarily lower grade material mined and processed.
- Net profit of US$91.9 million, was down 45% YoY mainly due to impairment charges and higher financing costs partly offset by a foreign exchange gain.
- All-in sustaining cost ("AISC") in 2018 was up 16% YoY due to higher capitalised stripping at the West African mines and Berezitovy mine in Russia associated with pits cutbacks for future ore supply.
- The Board has declared a dividend of 1.28 US cents per share for Q4 2018, representing a total distribution of US$4.3 million.
| Olga Ulyeva
Head of Media Relations
|Peter Ogden||Tel: +44 (0) 20 7250 1446|