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Nordgold Announces Q3 and 9m 2018 Financial and Op...

Nordgold Announces Q3 and 9m 2018 Financial and Operating Results

London, United Kingdom, 6 November 2018 — Nord Gold SE (“Nordgold” or the “Company”), the internationally diversified gold producer, announces its financial and operating results for the third quarter and nine months ended 30 September 2018.

“We were delighted to officially launch our new Gross mine in the third quarter. Gross is the third mine we have conceived, developed and built since 2013, a remarkable track record for a still young mining company. Early Gross performance is in line with expectations. At full capacity Gross will produce 200 koz of gold a year, making Nordgold a one million ounce producer for the first time. The launch of Gross has once again proven our development credentials. We expect to transfer this expertise to our next major development project, Montagne d’Or in French Guiana.

Third quarter production has been below our expectations, and lower production at our Berezitovy mine, resulting from a rock slide, lead us to adjust our full year forecasts accordingly. We increased mining investment in certain assets which we believe will result in sustained improved performance in 2019 and onwards. Longer term we remain confident in the outlook for the business, and are excited about the opportunities ahead.” Nikolai ZelenskiChief Executive Officer of Nordgold

9 months 2018 Highlights

Lost Time Injury Frequency Rate (LTIFR) improved significantly in Q3 2018 to 0.48. Likewise, in 9m 2018, LTIFR decreased by 6% year-on-year (“YoY”) to 1.05. With deep regret, we report one fatality occurred in August with a contractor employee at the Gross construction site.
Refined gold production in Q3 2018 increased by 2% quarter-on-quarter (“QoQ”) driven by higher production at Neryungri and Suzdal mines. In 9m 2018, production decreased by 6% YoY mainly due to increase in lower grade material processed at Bissa-Bouly, Taparko and Berezitovy.
The new Gross mine was officially launched in September 2018. Once at full nameplate capacity, the mine is expected to contribute an average of 200 koz of gold per year, raising Nordgold’s total annual gold production to over one million ounces.
Revenue in Q3 2018 decreased by 7% QoQ to US$289.6 million due to a lower average realised gold price. 9m 2018 revenue decreased by 5% YoY to US$857.9 million due to lower sales volumes partially offset by a higher average realised gold price.
All-in sustaining cost (“AISC”) in 9m 2018 was up 16% YoY due to higher capitalised stripping at the West African mines and Berezitovy mine in Russia to facilitate pits cutbacks for future ore supply. Q3 2018 AISC increased by 12% QoQ due to temporary higher capitalised stripping costs at the West African mines.
9m 2018 EBITDA decreased by 9% YoY to US$345.5 million mainly due to lower revenues. Q3 2018 EBITDA was down QoQ due to lower revenues and higher costs.
Q3 2018 net profit more than trebled QoQ to US$53.0 million mainly due to a foreign exchange gain and lower derivative net loss in Q3 2018.
Operating cash flow up 54% QoQ and 13% YoY to US$114.9 million in Q3 2018.
The Board has declared a dividend of 2.75 US cents per share for Q3 2018, representing a total pay-out of US$9.3 million.