Nordgold achieves million-ounce production mark, record earnings in 2019
Gold miner Nord Gold (Nordgold) increased its production by 15% year-on-year to a record 1.04-million ounces in the year ended December 31.
The higher production, and an average gold price of $1 400/oz, helped to boost the company’s adjusted earnings before interest, taxes, depreciation and amortisation to a record $667-million, which was 42% higher compared with the year ended December 31, 2018.
The company’s new Gross mine, in Russia, produced 259 200 oz in the reporting year, which exceeded the upper end of guidance of between 230 000 oz and 235 000 oz.
This offset lower production from the company’s Bissa, Bouly, Taparko, Taborny, Suzdal and Buryatzoloto projects.
In particular, the Taparko project, in Burkina Faso, reported a 33% year-on-year decline in production to 68 200 oz, while the Taborny project, in Russia, produced 23% less gold year-on-year at 76 400 oz.
Nordgold had two operations that reported increased production in the year under review, namely the Berezitovy project, in Russia, with a 24% higher year-on-year output to 60 000 oz, and the Lefa project, in Guinea, with 1% higher output year-on-year to 189 000 oz.
The Suzdal and Buryatzoloto projects are also based in Russia.
Meanwhile, Nordgold increased its free cash flow to $167-million as at December 31, compared with a negative free cash flow of $162-million in the prior year.
“Last year was a milestone year for Nordgold, as we produced more than a million ounces for the first time in our history.
“The Gross mine, which we spent several years de-risking while identifying an optimal pathway to development, has exceeded all our expectations,” CEO Nikolai Zelenski said on Monday.
Gross is the third mine that the company has successfully conceived, developed and built in its young history, after the Bissa and Bouly mines in Burkina Faso. With Gross’s launch, Nordgold is now firmly positioned as an industry leader in effective gold mine development.
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