Nordgold Reports Q2 and H1 2014 Operating Results

Amsterdam, Netherlands, July 18, 2014 - 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, 2014.

  • Lost time injury frequency rate (LTIFR) for H1 2014 was 0.73, a significant improvement compared with H1 2013 (1.42). In Q2 2014, the LTIFR was 1.08, an improvement of 42% compared with Q2 2013 (1.87), but higher than in Q1 2014 (0.40). Six of Nordgold’s mines had an LTI-free quarter and first six months of 2014.
  • Gold production in Q2 2014 was 265.0 thousand refined gold ounces («koz»)*, a 14% increase compared with Q2 2013 (232.6 koz) and a 26% increase compared with Q1 2014 (211.1 koz). In H1 2014 gold production reached 476.1 koz, a 14% increase compared with 416.3 koz in H1 2013.
  • In H1 2014, eight out of Nordgold’s nine mines achieved a year-on-year (YoY) production increase mainly as a result of measures the Company has implemented to improve operational efficiency at the mines. Double digit growth was recorded at Bissa, Taparko, Lefa, both the Buryatzoloto underground mines (Irokinda and Zun-Holba) and Neryungri.
  • The average realised gold price in Q2 2014 was US$1,292 per oz, a 6% decrease compared with Q2 2013 (US$1,379/oz) and a 1% decrease compared with Q1 2014 (US$1,299/oz). The average realised gold price in H1 2014 was US$1,295 per oz compared with US$1,482 per oz in H1 2013, representing a fall of 13%.
  • Despite a lower gold price, revenues in Q2 2014 were US$341.9 million, a 7% increase compared with US$320.3 in Q2 2013 and a 24% increase compared with US$274.9 in Q1 2014, due to higher gold production and sales volumes. In H1 2014, Nordgold revenues totaled US$616.8 million, almost at the level of H1 2013’s US$617.1 million despite a 13% decrease of the average realised gold price.
  • Nordgold is well on track to meet its 2014 full year production forecast of 870 — 920 koz.
  • Unaudited net debt at June 30, 2014 decreased to approximately US$692.6 million compared with US$729.8 million at the end Q1 2014, reflecting the strong positive free cash flow generated in Q2 2014.

* Including 20.1 thousand ounces of doré produced by Suzdal mine in Q1 2014, but refined and sold during Q2 2014.

“Nordgold has achieved yet another outstanding operating performance in the latest quarter. Our relentless focus on maximising operational performance while prudently deploying capex is delivering improved production and efficiencies across all our mine sites. Seven out of nine mines have shown strong YoY growth; six mines — in double digits. While Bissa and Berezitovy continued their flagship performance, production at Lefa and Buryatzoloto has significantly improved confirming success of our turnaround programme. Our optimised blending strategy combined with implementation of plant improvement programme has delivered record recovery at Taparko.
In addition to our success in operating performance and costs, we have made significant progress in enhancing the mineral base of Nordgold. We have acquired two satellite projects, Ronguen next to Bissa and Onot-Kitoiskaya next to Zun-Holba, and made an investment in Northquest Ltd. which owns a promising Pistol Bay project in northern Canada. We have also delivered a robust preliminary economic assessment of the Bouly project in Burkina Faso, moving the project into the feasibility study phase. Finally, pilot stage production at Gross is progressing according to schedule with preliminary leaching data tracking results of the feasibility study.
As always, our focus remains on maintaining cost discipline and improving efficiency and safety across the Group while we continue to work towards our goal of achieving positive free cash flow generation at all our mines.” Nikolai ZelenskiChief Executive Officer of Nordgold


Corporate Communications
Procurement Department