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Nordgold Announces Q2 and H1 2018 Financial and Op...

Nordgold Announces Q2 and H1 2018 Financial and Operating Results

London, United Kingdom, 28 August 2018 — Nord Gold SE (“Nordgold” or the “Company”), the internationally diversified gold producer, announces its financial and operating results the second quarter and first half ended 30 June 2018.

Gross is expected to produce 200 koz of gold per year over a period of 17 years, raising Nordgold into the selected group of gold miners worldwide producing in excess of 1 million ounces every year. According to JORC 2012, the Gross mine’s Mineral Resources are estimated at 9.74 moz, and Ore Reserves at 4.4 moz.

“We have delivered a robust performance in the first half in line with expectations. Our financial and operating results were impacted by the waste stripping at Berezitovy mine and lower grades at our Burkina Faso mines, though these were largely in line with the mine plans.

Looking ahead, our full year production guidance remains unchanged. I am delighted to confirm Gross construction is nearly complete, testament yet again to our development teams who have now successfully brought three new large scale greenfield mines on stream within the last five years. We expect to pour first gold at Gross very shortly and for the new mine to make an immediate positive impact on Group production, enabling us to reiterate our 950-1,000 koz guidance range.

Nordgold’s demonstrable track record in mine development, with our commitment to the environment, the local economy and making long term contributions to our host communities, gives us confidence in our next major project — Montagne d’Or in French Guiana, where we will apply for the necessary mining and construction permits shortly, Montagne d’Or is an outstanding asset and will be a significant and long-term contributor to the economy of French Guiana.” Nikolai ZelenskiChief Executive Officer of Nordgold

H1 2018 Highlights

Zero Lost Time Injury Frequency Rate (LTIFR) was achieved at Bissa-Bouly, Taparko and Irokinda mines in H1 2018. Across the business LTIFR was flat YoY at 1.31. Sadly, two fatalities were registered over the period.
Refined gold production of 448.6 thousand gold equivalent ounces («koz») was 8% lower year-on-year («YoY») mainly due to a planned increase in lower grade material processed at Bissa-Bouly, Taparko and Berezitovy, mostly in line with the mine plans.
Revenue decreased 3% YoY to US$589.7 million due to lower sales volumes partially offset by the higher average realised gold price.
All-in sustaining cost («AISC») was up by 17% YoY to US$1,009/oz mainly due to higher capitalised stripping at the West African mines and Berezitovy mine in Russia to facilitate pits cutbacks for future ore supply.
EBITDA of US$246.2 million was down 8% YoY due to lower revenue and higher costs noted above as well as an unfavorable change in the forex rate in Burkina Faso.
Net profit of US$56.2 million and normalised net profit attributable to shareholders of US$69.5 million.
Capex of US$238.6 million was 64% higher YoY reflecting peak investment commitments at Gross mine, which is under construction, and higher capitalised stripping.
Construction of the Gross mine is fully on track for first gold pour in early September 2018.
The Board has declared a dividend of 2.84 US cents per share for Q2 2018, representing a total pay-out of US$9.6 million.
Nordgold reiterates its 2018 production outlook in the range of 950 — 1,000 koz.