Nordgold: A High Growth International Gold Producer with a Near- Term Pipeline of Low cost, De-Risked Development Opportunities Louw Smith, COO NORD LI (LSE) September 19, 2016
Disclaimer Information contained in this presentation concerns Nord Gold N.V., a company organized and existing under the laws of Netherlands (the “Company”, and together with its subsidiaries, the “Group”), and is for general information purposes only. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. These materials may contain forward-looking statements regarding future events or the future financial performance of the Group. One can identify forward looking statements by terms such as “expect”, “believe”, “estimate”, “anticipate”, “intend”, “will”, “could”, “may”, or “might”, the negative of such terms or other similar expressions. These forward-looking statements include matters that are not historical facts and statements regarding the Group’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Group operates. By their nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that the Groups’ actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Group operates may differ materially from those described in or suggested by the forward-looking statements contained in these materials. In addition, even if the Group’s results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Group operates are consistent with the forward-looking statements contained in these materials, those results or developments may not be indicative of results or developments in future periods. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in the states where the Group operates, changes in the world [gold] market, as well as many other risks specifically related to the Group and its operations. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in these materials. None of the Company nor any of its shareholders, directors, officers or any other person accepts any liability whatsoever for any loss howsoever arising from any use of the contents of this presentation or otherwise arising in connection therewith. The presentation and the information contained herein does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities of the Company have not been, and will not be, registered under the US Securities Act of 1933, as amended (the “Securities Act”) . Accordingly, the securities of the Company may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Company does not intend to conduct a public offering of any securities in the United States 2 2
Nordgold: Diversified Asset Base Across Four Continents Neryungri Buryatzoloto 84 koz 113 koz Gross 230E+ koz Pistol Bay Bouly Bissa Berezitovy Montagne d’Or 120E+ koz 235 koz 125 koz Suzdal Aprelkovo 75 koz 20 koz Taparko 83 koz H1 2016 Revenue by Geography Operating Mines Lefa 214 koz Developing Assets Burkina Faso Russia Exploration Assets 33% 34% Kazakhstan Exploration Areas Guinea 10% 24% Actual production in 2015 3
Key Messages Focus on Free Cash Flow Low Cost Producer Compared to Peers Target Positive Free Cash Flow Generation at All Mines Robust Balance Sheet and Liquidity Control Margin Improvement and Profitable Extensions of Existing Operations Continuous Productivity Improvement Programs Development Projects at Operating Mines Near-Mine Exploration Success Growth Pipeline Delivered First Gold Poured at Bouly (Burkina-Faso) Gross (Russia) Construction Ongoing Montagne d’Or (French Guyana) Feasibility Study on Schedule Promising Exploration at Pistol Bay (Canada) 4 4
Nordgold is a LOW COST Producer Compared to Peers FY2015 Nordgold AISC was US$793/oz (11% reduction YoY) - one of the lowest compared to peers US$158.1m Free Cash Flow achieved in 2015, while investing in construction of Bouly mine FY 2015 All-In Sustaining Cost, US$/oz Au Eq. 1,200 1,000 793 800 600 Nordgold 400 200 Gold production, koz 0 5 0 5000 10000 15000 20000 25000 30000 35000 40000
Strong Cash Flow in Challenging Market Environment Operating Cash Flow (OCF) increased despite of the 2015 falling gold price as a result of higher sales and lower costs Meaningful positive Free Cash Flow (FCF) generation due to strong OCF and low maintenance CAPEX US$/oz 450 US$ million 1,400 300 US$ million 418 258 1,200 238 329 311 1,000 200 300 181 158 158 800 600 100 150 400 63 200 0 0 0 2013 2014 2015 2013 2014 2015 FCF Capex OCF Gold price Nordgold Consistently Generates Free Cash Flow 6
Debt Profile Improvement Debt (in US$ million) and Average Interest Rate Dynamics Nordgold’s debt position, as at 30 June, 2016: 968 946 944 1000 6.0% 5.9% 905 – Total Debt of US$905.3 million 800 724 5.5% 627 584 – Net Debt of US$562.5 million, US$161 563 600 million lower vs. Net Debt at end 2013 5.0% 400 4.9% 4.8% 4.7% – Net Debt / LTM EBITDA was 1.3x, which is 4.5% 200 significantly below our covenant level of 3.5x Gross Debt / LTM EBITDA 0 4.0% 2013 2014 2015 1H2016 No large debt repayments due until mid-2018 Total Debt Net Debt Average interest rate (RHS) We continue to manage our leverage and interest Debt Maturity Schedule, US$ million rate in the most efficient manner 615 600 448 500 400 Sberbank Loan Eurobond 200 167 84 42 0 7 2016 2017 2018 2019
Mine Productivity Improvements at Taparko Loading productivity, tonnes per hour Productivity Improvement Initiatives +64,7% 700 600 Nordgold implemented Overall Equipment Effectiveness (OEE) project in mining to 500 improve productivity of primary equipment 400 300 Key initiatives include: 8 7 7 6 6 200 5 5 • Reorganization of shift and lunch 100 break schedules to limit lost time 0 Jul Sep Nov Jan Mar May Jul • Optimizing trucks payloads (training of 15 15 15 16 16 16 16 trucks operators with payload Loading productivity, t/h Number of excavators procedure) Lunch optimization example, additional tones moved, July 2016 • Blast fragmentation improvement • Introduction of mining fleet dispatching systems Additional Resultantly, loading productivity was 97,110 tonnes improved by 65% with less excavators moved lead to in operation 9% increase in production 8 1 5 10 15 20 25 30
Berezitovy Underground Development Project Berezitovy Underground Project Overview Berezitovy Underground Perspective First underground Mineral Resources of 168koz Location Russia, Amur region Location reported in 2015 50 km from Trans-Siberian railway, NG Feasibility study converted 107koz into Ore Infrastructure access with all-season road, OP Reserves infrastructure Twin decline development to commence H1 2017 to Mine type Open pit, CIL access high-grade ore extensions below current open pit Project parameters Stage Open pit, UG development First ore accessed in H2 2018, and full production in H1 2017 2019 at an annual rate of 350kt at 5.4g/t. Start-up year Estimated CAPEX US$14.7 million Complete mechanized mine operated by 90 technical and operations employees. Annual production 55 koz, 3 years LoM LoM average TCC & Mining method consist of long-hole open stoping with US$589/oz & US$725/oz AISC cemented rockfill Annual processing continue at a rate of 1.82Mtpa until 2021; mill feed consisting of underground ore, open pit ore and historical stockpiles. 10,000m of annual exploration drilling will target Mineral Resources conversion and test depth extensions Regional early stage exploration focused on Khaikta permit north of Berezitovy 9 9
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