JOHANNESBURG (miningweekly.com) – LSE-listed Nordgold on Wednesday reported a 11% year-on-year, and 2% quarter-on-quarter increase in production for the three months ended September 30, to 270 600 gold equivalent ounces.
The company also noted that, for the nine months ended September 30, production had reached 746 900 oz, a 13% increase when compared to the same period in 2013.
Nordgold CEO Nikolai Zelenski said that, during the third quarter, eight of the company’s nine operating mines had achieved quarter-on-quarter production increases.
“I am particularly pleased with the continued excellent performance of Bissa and improvement at Lefa and Buryatzoloto mines, testament to the investments we have made in the assets and the efforts of the team on the ground.
“As a result, we are pleased to be able to guide towards the upper end of our full-year production target [of between 900 000 oz and 950 000 oz],” he said.
Further, despite a lower gold price – which, at $1 281/oz, was down 3% year-on-year – Nordgold’s third-quarter revenue increased by 6% year-on-year to $344.8-million, as a result of higher gold production and sales volumes.
For the first nine months of 2014, Nordgold’s revenue increased 2% year-on-year to $961.8-million, despite a 10% decrease in the average realised gold price.
The company’s unaudited net debt at September 30 was about $635-million, compared with $687-million at the end of the second quarter, reflecting the strong positive cash flow generated.
“As we approach the end of the year, we remain committed to our stated strategy, to maintain cost discipline and improve efficiency, while staying dedicated to improving safety across the company. We are well on track to meet our target of achieving positive free cash flow generation at all our mines,” Zelenski said.