Nordgold: Robustly Positioned for Cash Flow and Growth in a Volatile Environment September 2014 1
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 at a Glance H1 2014 Key Highlights Leading emerging markets gold producer with operations in Burkina Faso, Guinea, Russia, and Kazakhstan Gold Production 476koz Diversified asset portfolio: nine producing mines, two large-scale development project and four advanced Total Cash Costs US$708 / oz exploration projects Large JORC resource base, exceeding 37 Moz gold- All-in Sustaining Costs US$899 / oz equivalent (1) , and reserves at 12.6 Moz with life of approximately 13 years US$245M (2) EBITDA & Margin 40% World class board and management team, with a commitment to high standards of corporate H1 2014 Revenue by Geography governance Commitment to a solid dividend plan, as Nordgold pays the dividend quarterly with payout ratio at 30% London Stock Exchange listed GDR (ticker: NORD) 34% Russia 40% with 14.6% free float (incl. into FTSE Gold Mines Kazakhstan Index) Guinea Burkina Faso 8% 17% (1) Total resources (measured, indicated and inferred) including silver resources (2) Normalised EBITDA is presented / used, before year-end adjustments 3 3
Nordgold: Diversified Asset Base Buryatzoloto Neryungri 99 Koz 67 Koz Gross 220E+ Koz Bouly 140E+ Koz Montagne Bissa Berezitovy d’Or 254 Koz 120 Koz Suzdal Aprelkovo 81 Koz 33 Koz Taparko 108 Koz Lefa 163 Koz Operating Mines Developing Assets Exploration Assets Exploration Areas 4 4 (1) Actual production in 2013
History of Operations and Development Production in 2014 is expected to be in the range of 900 – 950 koz 2013 2012 Significant growth of gold production and 2011 A year of consolidation enhancement of management team and construction of Bissa 2010 mine Next successful year of Record gold production substantial growth of Growth in reserves by 2009 Acquires Crew Gold – Launch of world class Bissa production and resource more than 50% further expanding in mine base 2008 Consolidation of 100% of West Africa and Optimisation and Entering South America More than doubled the High River Gold diversifying resource integration of assets with Montagne d’Or project resource base to 22.7 Moz Expands into West base Forms integrated in French Guiana Africa acquiring High Reached c. 50% Established operations business model River Gold production in 4 countries outside Russia Completed 4 acquisitions 1,000 924 koz (6) 754 koz (4) 800 717 koz (5) 39% 589 koz (3) 534 koz (2) 600 18% 400 9% 193 koz (1) 200 34% 0 2008 2009 2010 2011 2012 2013 Peer-leading track record of dynamic growth (1) Taparko, Berezitovy and Buryatzoloto production included as of acquisition in November 2008 Figures shown on a 100% consolidated basis. Includes 5.3 koz gold equivalent (“GE”) of silver production (2) 5 5 Russia Kazakhstan Guinea Burkina Faso (3) Includes production from acquisition of LEFA (Guinea) as of August 2010 and 4.2 koz GE of silver production (4) Includes 7.1 koz GE of silver production (5) Includes 5.2 koz GE of silver production (6) Includes 6.9 koz GE of silver production
Management Team with Broad International Expertise Nikolai Zelenski Dmitry Guzeev Louw Smith Chief Executive Officer Acting Chief Financial Officer Chief Operating Officer CEO of Nordgold since its formation in Appointed Acting CFO of Nordgold in May, Joined Nordgold in June 2013 and has late 2007 2014 over 20 years of experience in the At OAO Severstal since 2004. Held the Joined Nordgold in July 2013 as Head of mining industry position of Head of Strategy at Severstal Corporate Reporting Previously COO of Alacer Gold and in Mining division Previously Head of Corporate Reporting in various roles at Gold Fields International Previously at McKinsey & Company, SIBUR and in various roles at Deloitte and Member of the Australian Institute of Mining Industry Practice Arthur Andersen Mining and Metallurgy Oleg Pelevin Philip Engelbrecht Martin White Head of Strategy Director of Metallurgy Technical Director Head of Strategy of Nordgold since its Joined Nordgold in February 2013 Joined Nordgold in August 2013 formation in late 2007 Previously: Aureus Mining, (COO), Over 10 years of experience in Joined OAO Severstal in 2004 and Ashanti Goldfields, IMC consulting optimising and managing multiple ore worked at Strategy of Severstal Mining PhD in Mining Engineering processing plant division Previously: Vice-President and Head of Previously Consultant at American Metallurgy of Gold Fields International Appraisal Member of the Australian Institute of Mining and Metallurgy and Canadian Institute of Metallurgists A balanced management team with strong corporate and technical track record 6 6
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