Nordgold Reports Q1 2015 Operating Results
Amsterdam, Netherlands, April 22, 2015 - Nord Gold N.V. (“Nordgold” or the “Company”, LSE: NORD), the internationally diversified low-cost gold producer, announces strong Q1 2015 operating results: 29% year-on-year growth in revenue and 26% increase in gold output to 266.7 koz.
- Lost time injury frequency rate (LTIFR) for Q1 2015 was 2.95. Four of Nordgold’s mines had an LTI free quarter.
- Gold production of 266.7 thousand gold equivalent ounces (koz), up 26% year-on-year (YoY) and up 12% quarter-on-quarter (QoQ).
- Seven out of Nordgold’s nine mines achieved a year-on-year production increase, with double digit growth at Bissa, Lefa, Berezitovy and Neryungri, as well as an 8% increase at Buryatzoloto.
- Q1 2015 refined gold production includes 28.5 koz of gold doré produced but not refined at Bissa, Taparko, Berezitovy and Neryungri mines at the end of 2014, which was refined in Q1 2015.
- The average realised gold price in Q1 2015 was US$1,224 per oz, a decrease of 6% compared with Q1 2014 (US$1,299/oz) and an increase of 3% compared with Q4 2014 (US$1,184/oz).
- Despite a lower gold price, revenue in Q1 2015 increased by 29% YoY to US$355.6 million. Revenue increased by 40% compared with US$254.3 million in Q4 2014 driven by higher refined gold production and also due to the fact that 24.5 koz of refined gold produced in the end of 2014 was sold in Q1 2015.
- Nordgold reiterates 2015 full year production guidance of 925 — 985 koz.
- Unaudited net debt at March 31, 2015 was approximately US$528.7 million compared with US$627.3 million as at December 31, 2014, reflecting the strong positive free cash flow generated.
We have maintained the operating momentum we showed throughout 2014 into the first quarter and delivered a substantial year on year increase in gold production. With seven of our nine mines achieving growth, and well over US$100 million of free cash flow generated during the quarter, we are building an enviable track record in operating excellence and this gives us confidence in our ability to deliver on our full year targets. Our development pipeline is also gathering momentum with progressing towards construction our Bouly and Gross projects. Combined with our other exploration projects we are in a very strong position to deliver long term value for shareholders.
Nikolai ZelenskiChief Executive Officer of Nordgold