Nordgold Reports Q4 and FY2014 Operating Results
Amsterdam, Netherlands, January 27, 2015 - Nord Gold N.V. (“Nordgold” or the “Company”, LSE: NORD), the internationally diversified low-cost gold producer, announces record operating results for 2014, with production up 7% to 984.5 koz driven by improved operational efficiency at all mines.
- Record gold production of 984.5 thousand gold equivalent ounces (koz), up 7% year-on-year (YoY) and exceeding by 3.6% the upper end of 2014 production guidance, raised in August 2014 to 900 — 950 koz from 870 — 920 koz.
- Increase in gold production driven by implementation of operational efficiency programmes across the entire asset portfolio:
- Ore mined increased by 10% YoY due to optimised mining plans and mining fleet productivity improvements.
- Ore milled increased by 19% YoY and recovery increased by 0.7 percentage point (pp) YoY to 81.7% due to implementation of various metallurgical projects and more advanced mill maintenance.
- Bissa gold output reached 250.7 koz, exceeding its capacity and our FY 2014 production guidance of 200 koz driven by higher ore milled volumes and grade.
- Comprehensive turnaround programme at Lefa mine resulted in increased gold production by 26% YoY to 205.1 koz.
- Production at Buryatzoloto’s underground mines (Irokinda and Zun-Holba) increased 22% YoY to 119.7 koz supported by higher head grade in ore mined, which was achieved as a result of continued investments in new level development and the development of new ore blocks.
- Taparko mine increased gold production 3% YoY to 112.0 koz driven by higher ore mined and ore milled volumes, as well as higher recovery.
- Berezitovy had a record year, increasing production by 2% YoY to 122.8 koz due to higher throughput, grade and recovery.
2014 has been a year of truly outstanding operational performance at Nordgold. We produced over a million ounces of gold in doré, setting a new production record and exceeding our increased production guidance. Most importantly, we delivered this production performance at low cost, and without compromising on our commitment to safety. I am particularly pleased with the marked and sustainable improvement at Lefa and Buryatzoloto, which illustrates our ability to drive performance across the entire portfolio.
This commitment to operational excellence, delivering higher production and lowering costs while improving safety, has enabled Nordgold to generate strong free cash flow in the weaker pricing environment and position the Company to deliver robust returns for shareholders in 2015.
In addition to our successful production performance, Nordgold’s dynamic development pipeline has also made real progress in 2014, providing a solid foundation for the Company to grow for many years to come. Nikolai ZelenskiChief Executive Officer of Nordgold