Gold producer Nordgold expects to pour first gold at its Gross mine, in Russia, before the end of September, which will have a positive impact on the company’s production for the second half of this year, enabling it to comfortably reach its million-ounce target.
Gross is expected to mine and process about 12-million tonnes of ore a year, producing more than 200 000 oz/y of gold for 17 years.
Meanwhile, Nordgold delivered a robust performance in the first half of the year, with 448 000 gold-equivalent ounces produced, despite waste stripping at the Berezitovy mine, in Russia, and lower grades at the Bissa-Bouly and Taparko mines, in Burkina Faso.
During the first six months of the year, Nordgold achieved a substantial improvement in ore mining efficiency owing to higher ore mining volumes at some of its openpit mines (Neryungri, Lefa, Taparko and Bissa-Bouly). This resulted in the stripping ratio decreasing by 15% year-on-year amid a 35% year-on-year increase in ore mining.
All-in sustaining costs (AISC) were up 17% to $1 009/oz, owing to higher capitalised stripping at the West African mines, as well as at the Berezitovy mine to facilitate pit cutbacks for future ore supply.
The full-year AISC guidance range has been increased to between $975/oz and $1 025/oz, from the previously expected $900/oz to $950/oz.
Nordgold reported earnings before interest, taxes, depreciation and amortisation of $246-million, which was down 8% year-on-year, owing to lower revenue and higher costs.
Revenue decreased by 3% year-on-year to $589-million.