Nord Gold's Bissa mine
JOHANNESBURG (miningweekly.com) – London-listed Nord Gold exceeded its 2013 production guidance of 850 000 gold-equivalent ounces with record output at its Bissa gold mine, in Burkina Faso, and the turnaround of underperforming mine sites beginning to deliver results.
The gold producer reported a fourth-quarter gold output of 263 400 oz, 30% higher than the 201 900 oz during the fourth quarter of 2012 and 8% higher than the third quarter of 2012, culminating in a 28% rise in year-end output to 924 000 gold-equivalent ounces.
Bissa mine achieved record production of 75 700 oz during the quarter under review and a record 254 300 oz during 2013, on the back of high-grade ore mined from the SW and Bissa Hill pits.
The Taparko mine, also in Burkina Faso, delivered 41% more gold, at 31 100 oz during the fourth quarter, owing to higher-grade ore mined and better recovery.
Nord’s Russia-based mines, Berezitovy and Buryatzoloto, produced 35 600 oz and 26 200 oz, representing a 27% and 12% respective hike on the output delivered during the third quarter, attributed to higher throughput and processed grade and an increase in recoveries and processed ore.
“This production growth was driven by improvements in all critical [key performance indicators], including grade, recovery and processing volumes and is testament to the success of the improvements we implemented at underperforming mine sites, combined with the superb performance of our new Bissa mine,” Nord CEO Nikolai Zelenski said.
The higher production, in conjunction with higher sales volumes, resulted in a 6% rise in revenue to $1 271.3-million during 2013, despite an 18% decline in the average realised gold price to $1 376/oz for the year.
During the quarter under review, Nord’s revenue of $328.8-million rose marginally when compared with the third quarter, but this represented a 5% fall on the corresponding quarter the year before.
The average realised gold price in the fourth quarter had declined to $1 250/oz compared with the $1 711/oz achieved in the fourth quarter during 2012.
“I expect all our mine sites to operate at capacity in 2014 as we make further production efficiencies and deliver on the optimisation of our mine plans,” said Zelenski, adding that the focus would remain on safety and operational efficiency and a reduction in costs, working capital and capital expenditure.
The group aimed to boast positive free cash flow positions at its operating mines in 2014.
As at December, Nord’s net debt was $721-million – a 7% decrease from the $775-million reported at the end of the third quarter, reflecting the strong positive free cash flow generated in the challenging market environment during the quarter under review.
Nord maintained a 2014 full-year production guidance of 870 000 oz to 920 000 oz.