Nordgold Reports Q3 and 9m 2016 Unaudited Financial and Operating Results

London, United Kingdom, 14 November 2016 - Nord Gold SE (“Nordgold” or the “Company”, LSE: NORD), the internationally diversified gold producer, announces an 11% increase in EBITDA to US$131.8 million in Q3 2016 compared with Q2 2016.

Highlights

  • EBITDA (1) up 11% quarter-on-quarter (“QoQ”) and 40% year-on-year (“YoY”) to US$131.8 million in Q3 2016. EBITDA was US$370.0 million in 9m 2016.
  • Net profit up 4% QoQ and 19% YoY to US$55.0 million in Q3 2016. Net profit was US$149.2 million in 9m 2016.
  • Operating cash flow up 36% QoQ and 40% YoY to US$109.0 million in Q3 2016.
  • Total debt down to US$871.3 million and net debt (1) down to US$559.7 million.
  • All-in sustaining costs (1) ("AISC") of US$955/oz in Q3 2016 and US$904/oz in 9m 2016.
  • 2016 production guidance reduced slightly to 840-880 thousand gold equivalent ounces (“koz”) from 880-930 koz due to discontinuation of production at Aprelkovo, and limited access in Q4 2016 to flooded higher grade ore blocks in Africa after an unusually long wet season.
  • 2016 full year AISC guidance increased to US$900/oz – US$950/oz from US$800/oz – US$850/oz due to decreased production guidance for 2016 and temporary higher capitalised stripping activities at West African and Berezitovy mines in Russia in order to facilitate pits cutbacks for ore supply in 2017.
  • In October 2016, Nordgold sold its 50% stake in silver exploration project Prognoz in Russia for US$30 million in cash and royalty rights over future production revenue for a total amount of up to US$40 million. The US$30 million proceeds from the deal will be included in Nordgold’s Q4 Financial Results.


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


Message from the CEO

"We have delivered a robust financial performance in the quarter with EBITDA up sharply both on the same quarter last year and on the previous quarter this year, boosted by a higher gold price, but also a more resilient quarter’s production. This more positive gold price environment, combined with the considerable progress we have made on our development pipeline including the launch of our new Bouly mine in Burkina Faso, gives us confidence in a strong performance in 2017. We have guided the market towards higher AISC for the full year as we invest more in particular at our West African mines in order to access higher grade ores – we believe this investment will pay dividends in 2017 and expect AISC to reduce during the course of next year, as we continue to implement further cost saving measures. We remain a consistent Free Cash Flow generator committed to maintaining a low cost base and reiterate our full year capex guidance, despite the on-going investment into our portfolio of de-risked, low capital intensive development opportunities."

Nikolai Zelenski, Chief Executive Officer, Nordgold

Telephone Conference and Q&A Session

Nikolai Zelenski, Chief Executive Officer of Nordgold, Dmitry Guzeev, Chief Financial Officer and Louw Smith, Chief Operating Officer will present the Company's financial results for Q3 and 9m 2016 on a conference call to be held on 14 November 2016 at 2.00 pm GMT (5.00 pm Moscow time). The presentation will be followed by a Q&A session. To participate in the telephone conference, please register in advance.


Registration Details
Conference Title: Nordgold's Presentation of Q3 and 9m 2016 Financial Results

To participate in the telephone conference, please dial:

Great Britain
+44 (0) 203 367 9462
0808 238 1775

USA
+1 855 402 7761

Russia
+7 495 705 9472


Webcast
The presentation will be broadcast live over the Internet and will also be available as a recording after the conference.
To participate in the webcast please follow the link:
http://http://event.onlineseminarsolutions.com/r.htm?e=1276967&s=1&k=405AFEA967061228DE2B02575DD4621E


Materials

The Company's financial and operating results for the third quarter and nine months ended 30 September 2016 and associated presentation materials will be available on the Company's official website: www.nordgold.com on 14 November 2016.

Press release
pdf, 1.43 Mb

CONTACTS

Valentina Bogomolova

Head of IR
tel.+7 495 644 44 73 #707 6711

Olga Ulyeva


Head of Media Relations
tel.+7 495 644 44 73 #707 6632

ROMAN MEZHUEV

RECRUITMENT MANAGER
tel.+7 495 644 44 73

OLEG BAZALEEV

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