Nordgold Reports Q4 and 2015 Operating Results

Amsterdam, Netherlands, January 26, 2016 - Nord Gold N.V. (“Nordgold” or the “Company”, LSE: NORD), the internationally diversified low-cost gold producer, announces its operating results for the fourth quarter and 12 months ended December 31, 2015

  • 2015 gold production of 950.0 thousand gold equivalent ounces (“koz”), in line with the full year (“FY”) production guidance range of 925 – 985 koz.
  • Q4 2015 gold output increased by 21% quarter-on-quarter (“QoQ”) to 241.9 koz.
  • Nordgold maintained its low-cost efficient performance and expects consolidated all-in sustaining costs for FY 2015 of approximately US$790 per ounce, in line with 2015 AISC guidance range of US$750/oz - US$800/oz.
  • FY 2016 production expected to be in the range of 950 – 1,010 koz.
  • Conservative 2016 AISC guidance of US$800/oz - US$850/oz, given market volatility and inflation expectations.
  • Bouly mine construction in Burkina Faso continued on schedule with production expected to start in H2 2016. According to the Feasibility Study, the mine will produce 120 koz per year for 10 years at AISC of US$730/oz.
  • In 2015, the LTIFR was 1.60 compared with 1.23 in 2014 and the overall number of fatalities at Nordgold increased to four, reflecting on the need for an increased focus on causes and remedies.
  • Average realised gold price in 2015 decreased by 8% YoY to US$1,161 per oz. Average realised gold price in Q4 2015 was US$1,096 per oz compared with US$1,184 per oz in Q4 2014, a fall of 7%.
  • Gold sales in 2015 increased by 1% YoY to 972.9 koz and included 24.5 koz of refined gold, which were produced in the end of 2014 and sold in Q1 2015.
  • FY 2015 revenue decreased by 7% YoY to US$1,129.3 million mainly due to the lower gold price, which was partially offset by higher sales volumes.
  • Unaudited net debt at December 31, 2015 was approximately US$584.0 million against net debt of US$573.3 million at September 30, 2015 reflecting strong free cash flow generation, US$13.0 million of paid dividends and US$2.8 million spent on the share buyback in Q4 2015, as well as Bouly construction capex.
“I am pleased to report strong operating performance in 2015. We have again delivered on our objectives for the year, achieving solid production results, while maintaining our sharp focus on costs. Our absolute commitment to safety is a priority while controlling our cost base and the proven high quality of our assets means we have firmly established ourselves in the lowest quartile of the global cost curve.

Our strong balance sheet, with no major debt payments due until 2018, and consistent free cash flow generation, enable Nordgold to continue investing in our exciting pipeline of low cost development projects while delivering robust returns to our shareholders, despite the weaker price environment.

In particular, the Bouly mine construction in Burkina Faso is firmly on track and we expect production to start in the second half of 2016 as planned, just as we brought Bouly’s sister mine, Bissa into production on time and on budget. We expect to increase production in 2016, while maintaining our highly competitive position on the cost curve. We remain confident in our ability to achieve sustainable growth in the future for the benefit of our shareholders.” Nikolai ZelenskiChief Executive Officer of Nordgold


Corporate Communications
Procurement Department