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Nordgold Reports Q1 2017 Operating and Financial R...

Nordgold Reports Q1 2017 Operating and Financial Results

London, United Kingdom, 22 May 2017 - Nord Gold SE (“Nordgold” or the “Company), the internationally diversified gold producer, announces its unaudited financial and operating results for the first quarter ended 31 March 2017.

Highlights

Refined gold production in Q1 2017 increased to 239.4 thousand gold equivalent ounces (“koz”), up 14% year-on-year (“YoY”) mainly driven by the launch of Bouly in Burkina Faso in September 2016.
Average realised gold price in Q1 2017 increased by 3% both YoY and quarter-on-quarter (“QoQ”) to US$1,229 per oz.
Q1 2017 revenue increased by 17% YoY and by 6% QoQ mainly driven by higher sales volumes along with higher gold price.
EBITDA (1) increased by 10% YoY and 11% QoQ to US$131.0 million in Q1 2017.
EBITDA margin of 44.7% in Q1 2017 against 47.6% in Q1 2016 and 42.7% in Q4 2016.
Net profit of US$39.8 million and normalised net profit attributable to shareholders (2) of US$36.7 million in Q1 2017.
Operating cash flow of US$56.2 million in Q1 2017 and negative free cash flow (2) generation of US$7.9 million mainly due to a temporary movement in working capital.
Q1 2017 total debt down to US$927.9 million YoY and Q1 2017 net debt (2) at US$677.7 million.
All-in sustaining costs (2) (“AISC”) of US$840/oz in Q1 2017 compared with US$825/oz in Q1 2016 and US$943/oz in Q4 2016.
The Board has declared a dividend of 3.22 US cents per share for Q1 2017, representing a total pay-out of US$11.0 million.
Lost time injury frequency rate (LTIFR) for Q1 2017 was 1.70.

“In our first set of quarterly results since we completed our de-listing, we have delivered a solid performance, continuing to build upon a strong second half of last year. Higher production, combined with lower costs and the better gold price, lead to a rise in profitability for the period. The successful launch of Bouly, our third mine in Burkina, has been a key production driver reinforcing our proven ability to identify, develop and operate new mines. As we emphasised at the time of our de-listing, we remain committed to transparency, strong corporate governance and regular reporting of our business. We also continue to pay dividends in line with our policy. Looking ahead, we are on track to achieve our production and cost targets, while construction of our new Gross mine progresses according to the budget and schedule.” Nikolai ZelenskiChief Executive Officer of Nordgold

(1) For detailed definition of the normalised EBITDA, please see “Non-IFRS Financial Measures”.
(2) For detailed definition, please see “Non-IFRS Financial Measures”.