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Nordgold Announces Q4 and FY Financial and Operati...

Nordgold Announces Q4 and FY Financial and Operating Results

London, United Kingdom, 15 March 2018 — 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 2017.

“This has been a strong year for Nordgold and we have made and exceeded guidance across our core metrics including both production and costs. Our focus on cash generation continues and I am pleased to confirm a $54 million payout to shareholders in dividends during the year, in line with the commitment to creating shareholder value we made at the time of our de-listing.

I am delighted with our operating performance in 2017: the Bissa-Bouly mine continues to drive production, firmly establishing ourselves as a major West African gold producer and the largest in Burkina Faso, while our Suzdal mine in Kazakhstan and Berezitovy mine in Russia in particular have shown sustained improvement.

We are making consistent progress with our development pipeline. Most excitingly, construction of our new Gross mine in Russia is on time and on budget. We continue to expect production to start in 2018 and for Gross to make a meaningful contribution to the Group this year.

In spite of the good operational performance and improving LTIFR, sadly we had 4 fatalities for the year. This is not an acceptable result and the company will continue to put its full resources towards the elimination of fatalities in 2018.

Our strategy is unchanged. We will continue to maximise the value of our existing assets, while expanding our international footprint to ensure we can access the highest quality assets and reserves. We look forward to 2018 with confidence.” Nikolai ZelenskiNordgold CEO

Q4 and FY 2017 Highlights

In 2017, Nordgold increased output by 11% year-on-year (“YoY”) to 968.3 thousand gold equivalent ounces (“koz”) exceeding its full year guidance of 900-950 koz. Refined gold production in Q4 2017 increased by 7% YoY and by 9% quarter-on-quarter (“QoQ”) to 251.5 koz mainly driven by Bissa-Bouly, Lefa and Suzdal.
Revenue increased by 16% YoY and by 8% QoQ to US$320.5 million in Q4 2017, mainly as a result of higher sales volumes as well as a YoY increase in the gold price. In 2017, revenue increased by 14% to US$1,221.0 million due to higher sales volumes.
EBITDA of US$140.8 million in Q4 2017, was up both YoY and QoQ mainly driven by higher sales volumes. FY 2017 EBITDA increased by 7% to US$520.5 million supported by higher sales volumes.
Net profit for Q4 2017 of US$52.8 million and normalised net profit attributable to shareholders (1) of US$50.9 million. In 2017, net profit increased by 4% YoY to US$166.8 million.
Operating cash flow of US$139.1 million in Q4 2017 (US$124.6 million in Q4 2016 and US$102.0 million in Q3 2017) and positive free cash flow (1) generation of US$29.4 million (US$27.5 million in Q4 2016 and US$11.2 million in Q3 2017) while Gross mine construction ongoing.
Total debt of US$997.0 million and net debt (1) of US$656.3 million at the end of Q4 2017.
All-in sustaining costs (1) (“AISC”) was at the lower end of guidance of US$900-950 per ounce and decreased to US$905/oz in 2017 from US$917/oz in 2016. Q4 2017, AISC was down 5% YoY and 10% QoQ to US$897/oz.
FY 2017 capex (1) of US$349.6 million in line with 2016 due to lower capitalised stripping along with the completion of the Bouly mine construction while Gross mine construction continues.
The Lost time injury frequency rate (LTIFR) for Q4 2017 of 1.20 compared with 0.96 in Q4 2016 and 0.73 in Q3 2017. FY 2017 LTIFR improved by 24% to 1.12.

(1) For detailed definition, please see «Non-IFRS Financial Measures».