Our senior management are responsible for developing our overall risk strategy and the policies that support it. The Board then reviews and approves our risk strategy and policies.

We have established internal controls to manage our risks. This helps the Board ensure that the risks associated with our business are effectively managed. Identifying, evaluating, and managing our risks is an ongoing process, as is the development of appropriate internal controls. We promptly address any weaknesses we find in our risk management or internal controls.

In reviewing the effectiveness of our risk management, the Board considers the results of our monitoring and reporting process, and our management's views. The Board also takes into account any material changes and trends in the risk profile, and considers whether the control system adequately supports our risk management objectives.

The Board also receives assurance from the Audit Committee, which receives information from regular internal and external audit reports and other reports on financial risk and internal control throughout Nordgold.  


We face a number of risks that are typical of our industry, as well as those relating to our operations and the markets in which we operate. These include, but are not limited to, those set out in the tables below.

Mining industry risks

The market price for gold can change significantly, driven - for example - by inflation expectations, movement in the US dollar, speculation, investment demand, and political events.

Risk Mitigation
The market price for gold can change significantly, driven, for example, by inflation expectations, movement in the US dollar, speculation, investment demand and political events.
We monitor the gold price, market, and other indicators related to risk: inflation, US Dollar rates, analyst forecasts, etc.
Our reserves and production could decline materially over time if we fail to acquire and/or develop additional reserves. The cost and outcome of exploration is inherently uncertain.
We employ experienced geologists and use up-to-date exploration techniques to maximize our chances of successful exploration. We control the cost of explorations and regularly review established KPIs and benchmarks. However, our risk policy does not provide for hedging future gold production.
We incur costs associated with complying with, and the risk of changes to, a range of laws, government regulations, licenses, permits, and other approvals.
Meeting our legal and regulatory obligations is fundamental to the way we work. We maintain sustainable relationships with governments and other regulatory bodies.
Gold mining, and the processes and chemicals we use, can create safety and environmental hazards.
Protecting the health and safety of our workers and looking after the environment are Nordgold’s highest priorities. All necessary environmental health and safety policies and procedures are in place at the company.

Operational risks

Risk Mitigation
Developing gold reserves, converting resources, and acquiring machinery and equipment involves substantial capital expenditure; sometimes, there may a shortage of capital.
Nordgold is soundly financed. We monitor our liquidity and carefully manage our cash flow and balance sheet to ensure we always have the financial capacity we need.
Our business depends significantly on the contributions of a number of key personnel, in particular senior management and our engineers and geologists – as well as good relations with our workforce.
Nordgold aims to be a best-in-class employer, offering attractive career opportunities and remuneration.
Our business depends on good relations with our employees.
Nordgold aims to be a best-in-class employer, offering attractive career opportunities and remuneration.
The cost of electricity, which is our single largest operating expense, can be unstable.
We have long-term contracts with suppliers and electricity-saving programs in place.

Emerging markets risks

Risk Mitigation
The legal and tax frameworks in emerging markets are not always fully developed.
Our tax, legal, and accounting departments ensure that we have a full and proper understanding of applicable tax and statutory legislation.
Political and social conflicts, instability, and crime and corruption could create an uncertain operating environment.
We closely monitor the political and social situation and the development of political risks insurance. We have stable and good relationships with local communities and governments.
We may be subject to arbitrary government action, a challenge being made to our ownership of assets, or a review of our licenses.
We would be able to mount an effective and robust legal defense with the help of our highly professional legal department and political risks insurance development.
Inflation and government efforts to combat it may contribute significantly to economic uncertainty.
We have strong cost control and continuing operational efficiency programs in place.
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