Nordgold Announces H1 2020 Operating and Financial Results

London, United Kingdom, 1 September 2020 - Nord Gold SE (“Nordgold” or the “Company”), the internationally diversified gold producer, announces its financial and operating results for the six months ended 30 June 2020.

“We are reporting an outstanding set of results for the first half, reflecting the higher gold price and strong operational performance despite the challenges presented by the unprecedented global pandemic. This is testament not only to the quality of our assets, but above all the huge efforts of our people around the world, who have adapted with speed and diligence to a new working environment and the associated changes we have implemented. The safety and well-being of our people remains the top priority. Those measures, including testing, monitoring, hygiene and quarantine will remain in place for as long as required.
Our Gross mine continues to exceed expectations and perform on a world class level and is our largest and most efficient asset. We also had a very strong performance at the Taparko mine where production doubled over the period. In the second quarter, nine of our ten operational mines experienced an increase in production compared to previous quarter, a significant achievement given the recent challenges. We continue to invest in our operations, in both new equipment and facilities, most recently having made major improvements to our Taborny and Gross mining fleets. We are also making significant progress in our efforts to reduce our CO2 emissions with a new efficient power plant project at Lefa on track for completion next year, as well as an ongoing improvement programme at the Gross power plant. Both of these projects will materially reduce emissions. ” Nikolai ZelenskiChief Executive Officer of Nordgold

H1 2020 Highlights

  • Lost Time Injury Frequency Rate (LTIFR) improved in H1 2020 to 1.18. We regret to report one Nordgold contractor fatality in H1 2020.
  • Refined gold production increased by 8% year-on-year (“YoY”) to 507.3 thousand ounces (“koz”), mainly driven by strong operating performances at the Gross, Taparko, Irokinda, Berezitovy and Suzdal mines, more than offsetting lower production at Bissa and Bouly.
  • COVID-19 pandemic crisis has made gold’s relevance as a hedge more apparent supporting its price performance. The average realised gold price tracked market dynamics and increased by 27% YoY in H1 2020 driving revenue up by US$179.2 million. Higher production contributed additional US$43.5 million to revenue growth in H1 2020.
  • All-in sustaining costs (“AISC”) decreased by 4% YoY to US$1,028/oz, mainly due to higher gold production from the efficient Gross mine, as well as lower costs at the Taparko, Lefa, Buryatzoloto and Suzdal mines.
  • Adjusted EBITDA increased by 67% YoY to US$433.2 million in H1 2020 driven by a more favourable gold price environment, as well as higher production and lower costs.
  • Net profit increased by 3.6 times YoY to US$218.2 million mainly due to higher revenue and lower impairment loss in H1 2020.
  • Free cash flow increased to US$177.5 million in H1 2020 from US$6.4 million in H1 2019 mainly due to lower capital expenditures and higher operating cash flow with the Gross mine being the main contributor.
  • Nordgold opened its unconditional on-market cash offer to acquire all of the ordinary shares in Cardinal Resources that it does not already own on 30 July 2020. Nordgold’s offer, which has already received all required regulatory approvals including in both Australia and Ghana will remain open until the close of trading on 10 September 2020 (unless further extended or withdrawn in accordance with the Corporations Act).



Olga Ulyeva
Head of Media Relations


Peter Ogden
Tel: +44 (0) 20 7250 1446


Corporate Communications
Procurement Department