Nordgold Reports Q3 and 9m 2016 Operating Results
London, United Kingdom, 31 October 2016 - Nord Gold SE ("Nordgold" or the "Company", LSE: NORD), the internationally diversified low-cost gold producer, announces its operating results for the third quarter and nine months ended 30 September 2016.
- Lost time injury frequency rate (LTIFR) for 9m 2016 was 1.41, an improvement of 18% compared with 9m 2015 (1.71). In Q3 2016 LTIFR was 1.47.
- Refined gold production in Q3 2016 was 211.1 thousand gold equivalent ounces (koz), a 5% increase year-on-year (YoY) and 1% decrease quarter-on-quarter (QoQ). Production in 9m 2016 was 633.7 koz.
- Production at Bouly started in Q3 on schedule, with 2.6 koz produced during the quarter. Bouly is expected to produce up to 20 koz of gold in 2016 and an average of 120 koz per year for its 10-year life span.
- Gold production increased QoQ at Bissa, Taparko, Neryungri and Suzdal mines.
- Nordgold expects higher output in Q4 2016 driven by: higher production at Bissa, Berezitovy and Lefa mines; the positive impact of the new HiTeCC technology at Suzdal; and ramp up of the new Bouly mine. Nordgold confirms its 2016 production forecast range of 880-930 koz.
- Average realised gold price in Q3 2016 increased by 6% QoQ and 19% YoY to US$1,335 per oz.
- Revenue in Q3 2016 increased by 4% QoQ and by 25% YoY to US$281.1 million. Revenue in 9m 2016 was US$801.5 million.
- Nordgold completed the acquisition of Northquest Ltd which owns the Pistol Bay exploration project in eastern Nunavut territory, Canada, in October 2016.
- Unaudited net debt at 30 September 2016 was approximately US$559.7 million compared with US$562.5 million as at 30 June 2016.
I am pleased to report a solid third quarter of production, during which the business has performed with resilience. We enter the final quarter of the year in a strong position, with the launch of the Bouly mine in Burkina Faso in September this year. Bouly was delivered on time and under budget, in what was another successful greenfield project undertaken by the Company. Bouly looks set to make a substantial contribution to the Group as it ramps up during the remainder of the year and we expect it to hit nameplate capacity in 2017. We have made solid progress on our development pipeline, with construction on schedule at our new Gross project, while we have also consolidated our ownership positon in the exciting Pistol Bay project in Canada.
Nikolai ZelenskiChief Executive Officer of Nordgold