Nordgold profits off higher gold price, sale of Cardinal Resources shares
Diversified gold producer Nordgold reports that its adjusted earnings before interest, taxes, depreciation and amortisation increased by 52% year-on-year to a record $1.01-billion in 2020.
This performance was mainly the result of a more favourable gold price environment and a stable cash cost position.
The Covid-19 pandemic made gold’s relevance as a hedge more apparent, thereby supporting its price performance, with the average realised gold price having increased by 27% year-on-year in 2020, driving Nordgold’s revenue up.
Nordgold’s performance was also boosted by other factors including a gain on the sale of the Cardinal Resources shares owned by Nordgold to Shandong Gold, foreign exchange gains and a lower impairment loss than in 2019.
Excluding gains from the sale of Cardinal Resources shares, Nordgold’s free cash flow increased to a record $551.9-million in 2020, mainly a result of lower capital expenditures and higher operating cash flow with the Gross mine, in Russia, the main contributor.
The miner’s refined gold production of 1.045-million ounces of gold equivalent was marginally up on 2019, despite the challenges presented by the unprecedented global Covid-19 pandemic.
The strong production results were driven by the Gross, Taborny (Russia), Taparko (Burkina Faso), Irokinda (Russia) and Berezitovy (Russia) mines, more than offsetting lower production at other mines.
Meanwhile, the miner also managed to make significant progress in the development of the Gross mining district, with an ongoing realisation of $58-million expansion project to increase mining capacity to 18-million tonnes a year from the third quarter of this year.
In addition, the capacity of Taborny mine increased from 5-million tonnes a year to 7.5-million tonnes a year; while rapid development of the Tokko project with a positive preliminary economic assessment confirms a net present value of about $653-million.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation















