Nordgold Reports Q2 and H1 2013 Operating Results
Nord Gold N.V. («Nordgold» or the «Company», LSE: NORD), the internationally diversified, pure-play gold producer strategically focused on emerging markets, announces its operating results for the second quarter and six months ended June 30, 2013.
- Lost time injury frequency rates (LTIFR) for Q2 2013 rose by 82% compared with Q2 2012 (1.03) and by 63% compared with Q1 2013 results (1.15).
- Gold production for Q2 2013 was 232.6 thousand gold equivalent ounces (“koz”), a 41% increase on Q2 2012 (165.3 koz) and a 27% increase on Q1 2013 (183.6 koz).
- Bissa operated ahead of expectations with production of 112.5 koz in H1 2013, exceeding the initial full year production guidance for 2013 of up to 100 koz.
- Revenues for Q2 2013 increased by 21% from Q2 2012 to US$319.5 million. This represents an 8% increase from Q1 2013 ($296.8m).
- Average realised gold price in Q2 2013 was US$ 1,376 per oz compared to US$ 1,602 per oz in Q2 2012, down 14%.
- Gold and silver mining license for the Gross project was awarded in Q2 2013.
- 2013 сapex budget was reduced by approximately US$40-50 million from US$300 million due to lower spending on exploration and at the Gross project, which remains Nordgold’s principal development asset.
- Net debt at June 30, 2013 was approximately US$800 million, an increase from US$740.9 million at Q1 2013 reflecting the dividend of US$44.6 million paid at the end of June.
- Nordgold reiterates 2013 full year production forecast of 770 — 850 koz.
“I am pleased to report a strong quarter of production, which delivered quarter-on-quarter double digit growth across nearly all our mines. The most notable progress has been achieved at our African operations with Bissa mine already running at full capacity with the first half production exceeding our initial full year production guidance for 2013, and Lefa mine beginning to access higher grade ore and in June achieved the target head grade of 1.15 g/t.In the second half of the year Nordogld will continue to implement its cost efficiency program, and expects to achieve further improvements in mining and processing. I reiterate previous guidance that full year production for 2013 will be in the range of 770 — 850 koz and firmly believe Nordgold is well positioned to deliver long term growth and value to shareholders.” Nikolai ZelenskiChief Executive Officer of Nordgold