Nordgold boosts 2013 gold equivalent output 29% to 924,400oz
MOSCOW. Jan 23 (Interfax) - Nordgold boosted output 29% in 2013 to 924,400oz gold equivalent, the company said in a statement.
Guidance for the year was 850,000oz.
Nordgold said it expected to produce 870,000-920,000oz in 2014.
Output rose 30% year-on-year to 263,400oz gold equivalent in Q4 2013 and was 8% higher than in Q3 2013. "Nordgold achieved record gold production in the last quarter, driven by the continued outperformance of Bissa and from the company realizing the benefits of its turnaround programme at underperforming mine sites," the company said.
Despite a much lower gold price, revenue in 2013 increased by 6% from 2012 to $1.271 billion, due to higher gold production and sales volumes. Revenue grew 5% year-on-year in Q4 to $328.8 million.
The average realized sale price of gold fell 18% in 2013 to $1,376/oz and 27% year-on-year in Q4 to $1,250/oz.
Sales rose 29% in 2013 to 924,200oz and 30% year-on-year in Q4 to 263,100oz.
Net debt was $721 million at end Q3 3013, down from $775 million at end Q3 2012, "reflecting the strong positive free cash flow generated in the challenging market environment of Q4 2013," the company said.
Nordgold refined gold production by mine, '000 oz:
| Q4 2013 | Q4 2012 | Change | Q2 2013 | Change | 2013 | 2012 | Change | |
| Bissa | 75,7 | - | - | 66 | +15% | 254,3 | - | - |
| Taparko | 31,1 | 35,6 | -13% | 22,1 | +41% | 108,4 | 126,7 | -14% |
| Lefa | 43,7 | 47,8 | -9% | 47,9 | -9% | 162,7 | 171,9 | -5% |
| Buryatzoloto | 26,2 | 22,3 | +17% | 23,4 | +12% | 98,5 | 108,9 | -10% |
| Berezitovy | 35,6 | 37,1 | -4% | 28 | +27% | 120,3 | 116,3 | +3% |
| Neryungri | 20,9 | 22,4 | -7% | 21,7 | -4% | 66,5 | 66,3 | 0% |
| Aprelkovo | 7,9 | 11,5 | -31% | 11,9 | -33% | 32,7 | 35,9 | -9% |
| Suzdal | 22,3 | 25,2 | -12% | 23,8 | -6% | 81,1 | 90,9 | -11% |
| Total | 263,4 | 201,9 | +30% | 244,7 | +8% | 924,4 | 716,9 | +29% |
The Bissa mine process facility in Burkina Faso will operate at full capacity and produce around 200,000oz in the full year 2014 compared with the outperformance of 254,300oz in 2013. The decline in production is driven by lower head grade as anticipated in the mine plan.
Within the pilot stage operation at Gross project in Yakutia, Nordgold expects to process 1.8 million tonnes of ore at the satellite Neryungri mine and to produce approximately 30,000oz of gold in 2014.
Nordgold affirmed planned capex of $200 million in 2014.
Nordgold is the former gold producing subdivision of Severstal's resource division, and it was spun off in January 2012. The company's Global Depositary Receipts (GDR) are traded on the London Stock Exchange. Steel magnate Alexei Mordashov is Nordgold's principal beneficiary with a stake of 85.4%, and the free float is 15%. The company operates nine active mines in four countries - Russia, Kazakhstan, Guinea, and Burkina Faso - as well as a number of projects at the development and exploration stages.
