Nordgold ups gold production 41% to 232,600 oz in Q2
MOSCOW. July 12 (Interfax) - Gold producer Nordgold boosted gold production by 41% year-on-year to 232,600 gold equivalent ounces in Q2 2013, the company said in a press release.
This increase was facilitated by the launch of a gold producing enterprise at the Bissa deposit in Burkina Faso, as well as by production at Buryatzoloto , Berezitovy, Suzdal, Neryungri and Aprelkovo.
In comparison with Q1 2013, gold production climbed 27%.
Nordgold generated $319.5 million in revenues in April-June, a 21% increase, and a quarter-on-quarter rise of 8%.
"Nordgold continues to expect 2013 full year production to be in the range of 770,000 to 850,000 oz," the press release said.
The average gold sales price for the reporting period was down 14% year-on-year at $1,376/oz
The company reaffirms its production forecast for this year at 770,000-850,000 oz of gold.
Nordgold production highlights for Q2 2013*:
| Q2 2013 | Q2 2012 | % | Q1 2013 | % | |
| Ore production, mln tonnes | 4 389 | 4 331 | 1% | 3 463 | 27% |
| Ore processing, mln tonnes | 5 026 | 3 979 | 26% | 3 446 | 46% |
| Gold content, grams/tonne | 1.84 | 1.83 | 1% | 1.97 | - 6% |
| Recovery ratio | 79.3% | 76.2% | 3.1 pp | 82.7% | - 3.4 pp |
| Gold output, 1,000 oz | 232.6 | 165.3 | 41% | 183.6 | 27% |
| Gold sales, 1,000 oz | 232.2 | 165.2 | 41% | 183.8 | 26% |
| Average $ price per oz | 1 376 | 1 602 | - 14% | 1 615 | - 15% |
| Sales revenue | 319.5 | 264.7 | 21% | 296.8 | 8% |
*Including 2,716 oz of silver in gold equivalent for Q1 2013.
Output of refined gold per asset, 1,000 oz:
| Q2 2013 | Q2 2012 | % | Q1 2013 | % | |
| Bissa | 72,2 | - | - | 40,4 | 79% |
| Lefa | 36,6 | 43,6 | - 16% | 34,4 | 6% |
| Taparko | 25,8 | 29,3 | - 12% | 29,4 | -12% |
| Buryatzoloto | 25,7 | 30,2 | - 15% | 23,3 | 10% |
| Berezitovy | 30,6 | 25,5 | 20% | 26,1 | 17% |
| Suzdal+Zherek | 20,0 | 18,7 | 7% | 15,1 | 32% |
| Neryungri | 13,3 | 11,3 | 18% | 10,7 | 24% |
| Aprelkovo | 8,5 | 6,6 | 29% | 4,4 | 93% |
| Group as whole | 232,6 | 165,3 | 41% | 183,6 | 27% |
Nordgold said that production at the Bissa deposit exceeded the level expected for the year of 100,000 oz of gold and that in H1 there was 112,500 oz produced at the deposit.
Production at Tararko was down 12% quarter-on-quarter at 25,800 oz in Q2. The company attributes this to the planned ten-day closing of the mine for efforts to improve production.
At the Suzdal (Kazakhstan) deposit, Q2 gold production was up 32% quarter-on-quarter at 20,000 oz.
Nordgold obtained licensing to the Gross deposit last quarter. The company expects to pour its first gold at Gross in pilot mode late this year. Annual capacity at the heap-leach facility will be around 12 million tonnes of ore, yielding over 150,000 oz of gold, when the operation achieves full capacity, expected in 2016.
Nordgold was spun off from Severstal 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.
