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Nordgold Q2 and H1 2017 Financial and Operating Re...

Nordgold Q2 and H1 2017 Financial and Operating Results

London, United Kingdom, 28 August 2017 - Nord Gold SE (“Nordgold” or the “Company”), an internationally diversified gold producer, announces its unaudited financial and operating results for the second quarter and first half ended 30 June 2017.

“We have made solid progress in the first half of 2017, both financially and operationally. A combination of increased production across our portfolio, higher sales volumes and an improving gold price have enabled us to improve our positive free cash flow generation meaningfully. We are also making good headway with our development pipeline as we look to bring more production online. Our Gross mine is on track for commissioning next year and we have fulfilled the criteria to exercise our option for a 55.01% stake in our promising Montagne d’Or project in French Guiana. Finally, we continue to return profits to our shareholders through dividends, as we promised to do at the time of our de-listing.” Nikolai ZelenskiChief Executive Officer of Nordgold

Q2 and H1 2017 Highlights

Refined gold production in Q2 2017 increased by 16% year-on-year (“YoY”) and by 3% quarter-on-quarter (“QoQ”) to 246.8 thousand gold equivalent ounces (“koz”). Bissa-Bouly increased gold production by 84%, Taparko and Suzdal increased YoY production by around 33% each and Berezitovy increased YoY production by 30%. H1 2017 production increased by 15% to 486.2 koz.
Q2 2017 revenue increased by 15% YoY and by 6% QoQ to US$311.7 million, mainly supported by higher sales volumes. H1 2017 revenue increased by 16% YoY to US$604.9 million.
EBITDA increased by 14% YoY and 4% QoQ to US$135.6 million in Q2 2017. H1 2017 EBITDA increased by 12% to US$266.5 million.
Net profit for Q2 2017 of US$27.9 million and normalised net profit attributable to shareholders (1) of US$54.9 million. In H1 2017, net profit decreased by 28% YoY to US$67.7 million. As previously disclosed, in H1 2016 Nordgold received the net result of the Detour Gold Corporation shares sale of US$51.0 million. Operating cash flow of US$118.1 million in Q2 2017 and positive free cash flow (1) generation of US$26.8 million.
Total debt of US$1,002.7 million (including derivative instrument of US$16.8 million) and net debt (1) of US$660.4 million at the end of Q2 2017.
All-in sustaining costs (1) ("AISC") of US$889/oz in Q2 2017, compared with US$930/oz in Q2 2016 and US$840/oz in Q1 2017. H1 2017 AISC was US$865/oz against US$878/oz in H1 2016.
The Board has declared a dividend of 4.82 US cents per share for Q2 2017, representing a total pay-out of US$16.5 million.
Lost time injury frequency rate (LTIFR) for Q2 2017 was 0.94, down by 22% YoY and by 45% QoQ.

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