Nordgold Announces Q2 and H1 2019 Operating and Financial Results
London, United Kingdom, 13 September 2019 — Nord Gold SE (Nordgold or the Company), the internationally diversified gold producer, announces its financial and operating results for the second quarter and first half ended 30 June 2019.
I am pleased to report a strong second quarter, with eight of our ten mines achieving an increase in gold production from the first quarter. This improved operating performance highlights the effectiveness of the investments we made into our portfolio in 2018 to better position the business for long term sustainable growth. I am also delighted with the performance of our new Gross mine, launched on time last year. Having produced over 60 koz of gold in the second quarter, it is swiftly and successfully ramping up and turning into a world class performer. Gross is the third new mine the Nordgold team had conceived, designed and constructed in our relatively young history. The success of Gross gives us great confidence in our other longer term development projects. We have the skillset, track record and discipline to progress projects through to development, creating value for all our stakeholders long into the future.
Nikolai ZelenskiChief Executive Officer of Nordgold
Q2 2019 Highlights
- Lost Time Injury Frequency Rate (LTIFR) improved by 33% quarter-on-quarter (QoQ) to 1.18. Nordgold regrets to report a fatality incident at its Taborny mine in August.
- Refined gold production increased by 22% QoQ to 258.7 thousand gold equivalent ounces (koz) driven by higher volumes of ore processed and higher recovery.
- Adjusted EBITDA increased by 18% QoQ to US$144.3 million mainly due to higher production.
- Free cash flow increased to US$61.0 million from US$2.5 million in Q1 2019 mainly due to higher operating cash flow with Gross and Taborny being the main contributors.
- All-in sustaining costs (AISC) decreased by 7% QoQ to US$1,038/oz mainly driven by lower total cash costs, as well as lower capitalised stripping at Taparko and maintenance capex at Lefa.
H1 2019 Highlights
- Refined gold production increased by 5% year-on-year (YoY) to 470.5 koz mainly driven by the ramp up at the new Gross mine and higher production at Bissa, partially offset by temporarily reduced recoveries at Taparko and Suzdal.
- Adjusted EBITDA up 6% to US$ 259.9 million due to higher production in the second quarter.
- Net profit increased by 9% to US$61.0 million mainly due to derivative net income of US$27.3 million in H1 2019 compared to derivative net loss of US$18.6 million in H1 2018, partially offset by a US$34.5 million impairment charge on stripping assets at Berezitovy.
Head of Corporate Communications
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