Nordgold Reports Q2 and H1 2016 Operating Results
London, United Kingdom, 27 July 2016 - Nord Gold SE ("Nordgold" or the "Company", LSE: NORD), the internationally diversified low-cost gold producer, announces its operating results for the second quarter and six months ended 30 June 2016.
- Lost time injury frequency rate (LTIFR) for Q2 2016 was 1.21, an improvement of 19% compared with Q1 2016 (1.49) and of 32% compared with Q2 2015 (1.79).
- Refined gold production in Q2 2016 increased by 2% quarter-on-quarter (QoQ) to 213.1 thousand gold equivalent ounces (koz).
- In Q2 2016, refined gold production increased QoQ at Taparko, Buryatzoloto, Neryungri and Aprelkovo mines and doré output grew at Bissa.
- Bouly mine construction in Burkina Faso continued on schedule with production expected to start in Q3 2016. Bouly is expected to produce on average 120 koz per year for 10 years at AISC of US$730/oz.
- Nordgold expects higher output in H2 2016 driven by: higher production at Berezitovy and its West African mines; the positive impact of the new HiTeCC technology at Suzdal; and the new Bouly mine launch scheduled for Q3 2016.
- Average realised gold price in Q2 2016 increased by 6% QoQ to US$1,265 per oz.
- Revenue in Q2 2016 increased by 8% QoQ to US$269.9 million compared with US$250.5 million in Q1 2016.
- Unaudited net debt at 30 June 2016 was approximately US$562 million compared with US$588.2 million as at 31 March 2016.
We have increased gold production relative to the first quarter despite significant stripping volumes at our flagship Bissa and Berezitovy mines, and we expect that the production growth will continue in the second half of the year. We have also continued to invest in our development programme, in particular Bouly which we expect to launch in the third quarter — on time and under budget. Bouly, our third mine in Burkina Faso, will make a meaningful contribution to our full year production and further strengthens our position as the leading gold producer in the country. Our commitment to low costs, and our continued investment in our development projects means we are well placed to capitalise on a higher gold price environment.
Nikolai ZelenskiChief Executive Officer of Nordgold