Nordgold Reports Q3 2012 Operating Results
Amsterdam, Netherlands, October 11, 2012 – Nord Gold N.V, (“Nordgold” or the “Company”, LSE: NORD), an independent, internationally diversified, pure-play gold producer strategically focused on emerging markets, announces its operating results for the third quarter and nine months ended September 30, 2012.
- Lost time injury frequency rates (LTIFR) for Q3 2012 fell by 21% to 1.96 from 2.48 in Q3 2011.
- Q3 gold production of 194.0 thousand gold equivalent ounces (koz), 17% increase compared to Q2 2012 (165.3 koz) and 9% ahead of Q3 2011 (178.4 koz).
- Gold production in Q3 2012 increased at Lefa, Suzdal, Berezitovy and Aprelkovo over Q3 2011, while production fell at Taparko, Buryatzoloto and Neryungri over the same period.
- Our Suzdal mine has delivered a particularly strong performance due to a return of gold recoveries to the historic high of 69%, while our Berezitovy mine has continued to perform at record levels. Our Taparko mine has achieved an improvement in gold recoveries after the launch of a regrind mill in early Q3 2012. However, at 83% recoveries are still below target levels, and operating settings at the plant are being further optimized. Buryatzoloto production decreased by 26% relative to Q3 2011 due to a reduction in head grade.
- Revenues for Q3 2012 were US$322.5 million, are up US$69.1 million from Q3 2011 (US$253.4). The increase in revenues was mainly due to a growth in gold sales (29% higher), which was partially offset by lower realised gold prices of US$ 1,670 per ounce (2% down).
- Nordgold continues to make progress in resolving operational issues across most of its mines with robust production and clearly visible potential for upside for the rest of 2012 and in 2013 at Lefa, Suzdal, Berezitovy and both Russian heap leach operations — Neryungri and Aprelkovo. Head grades at Burytzoloto and recoveries at Taparko remain an uncertainty.