Nordgold: High Growth Emerging Market Leader in Gold March 2013 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 2 conduct a public offering of any securities in the United States
Presenters Today Nikolai Zelenski Chief Executive Officer Sergei Zinkovich Chief Financial Officer 3
Summary FY 2012 Q4 2012 » Gold production for the twelve months ended » Q4 2012 gold production of 201.9 Koz, a 4% December 31, 2012 was 716.9 thousand gold increase from Q3 2012 (194.0 Koz) and a 1% equivalent ounces (“ Koz ”), a decrease of 5% from decrease from Q4 2011 (203.8 Koz) FY 2011 (754.5 Koz) » Revenue for Q4 2012 increased by 8% to US$346.8 » Revenue for the twelve months ended December million from Q3 2012 (US$322.5 million), a 31, 2012 increased by 1% to US$1,197.9 million, decrease of 10% as compared with Q4 2011 compared to US$1,182.1 million in 2011 (US$385.3) » EBITDA of US$ 493.0 million, a decrease of 14% » Q4 2012 EBITDA of US$ 143.8, an increase of 9% from FY 2011 (US$574.5 million) from Q3 2012 (US$131.5 million), and a decrease of 26% from Q4 2011 (US$ 194.7 million) » Cash flow from operating activities after interest » Cash flow from operating activities after interest and income tax paid was US$121.6 million, a 69% decrease from FY 2011 (US$397.6 million) and income tax paid was US$50,6 million, a decrease of 26% from Q3 2012 (US$68.6 million), and a decrease of 73% from Q4 2011 (US$184.2 million) 4
Financial and Operating Results US$ m (1) Q4 2012 Q4 2011 Change Q3 2012 Change FY 2012 FY 2011 Change, % Financial Results Revenue 346.8 385.3 (10%) 322.5 8% 1,197.9 1,182.1 1% Cost of sales 287.5 213.1 35% 220.0 31% 849.6 672.6 26% EBITDA 143.8 194.7 (26%) 131.5 9% 493.0 574.3 (14%) EBITDA margin 41.5% 50.5% (9pp) 40.8% 0.7pp 41.2% 48.6% (7.4pp) Operating cash flow 50.6 184.2 (73%) 68.6 (26%) 121.6 397.6 (69%) Capital expenditure 131.6 120.7 9% 118.5 11% 474.4 318.6 49% Operational Results Gold production (Koz) 201.9 203.8 (1%) 194.0 4% 716.9 754.5 (5%) Gold sold (Koz) 202.7 233.3 (13%) 193.2 5% 717.3 754.5 (5%) Avg. realised gold price 1,711 1,651 4% 1,670 2% 1,670 1,567 7% (US$/oz) Total cash cost (US$/oz) 844 718 18% 837 1% 836 688 22% (1) Unless otherwise stated 5
Financial and Operating Dynamics 2012 Quarterly Production (Koz) Key Q4 2012 Operating Results • Gold production in Q4 2012 increased at Lefa, Taparko, and 250 29% Berezitovy over Q3 2012, while production fell at 202 194 Buryatzoloto, Suzdal, Neryungri and Aprelkovo over the same 200 165 period 156 150 • We continue to make progress in resolving operational issues 100 across most of our mines with robust production and clearly visible potential in 2013 at Lefa, Suzdal, Berezitovy and both 50 Russian heap leach operations – Neryungri and Aprelkovo 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Key Q4 2012 Financial Results 2012 Quarterly EBITDA (US$ m) • 27% Up 9% (US$12.3 million) from Q3 2012. EBITDA was 160 144 positively impacted by higher production and cost control 132 140 measures at certain mines. EBITDA margin for Q4 2012 was 114 120 41.5% 104 100 • Positive trend for EBITDA growth with the expectation of flat 80 cost inflation and recovery in the gold prices in 2013 60 40 20 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 6
Financial Highlights for Individual Mines Selected Financials by Segment (US$ m) Revenue Breakdown by Region (FY 2012) Revenue FY2012 FY 2011 Change Q4 2012 Q4 2011 Change 287 304 (6%) 82 82 0% Lefa Taparko 212 205 3% 61 45 36% 24% Guinea Suzdal 153 130 18% 43 50 (14%) Burkina Faso 45% Neryungri 111 118 (6%) 40 47 (15%) Kazakhstan 18% Russia Aprelkovo 60 49 22% 20 18 11% 13% 194 166 17% 63 65 (3%) Berezitovy 181 210 (14%) 38 79 (52%) Buryatzoloto Total revenue 1,198 1,182 1.3% 347 385 (10%) EBITDA Breakdown by Region (FY 2012) EBITDA FY2012 FY 2011 Change Q4 2012 Q4 2011 Change Lefa 75 108 (31%) 27 27 0% 15% Taparko 124 137 (9%) 35 29 21% Guinea Burkina Faso Suzdal 54 56 (4%) 17 23 (26%) 55% 25% Kazakhstan Neryungri 53 60 (12%) 20 29 (31%) Russia Aprelkovo 24 24 0% 8 10 (20%) 11% Berezitovy 114 96 19% 39 41 (5%) Unallocated corporate costs -6% Buryatzoloto 81 128 (37%) 12 46 (74%) Other 32 35 (9%) (14) (10) 40% Total EBITDA 493 574 (14%) 144 195 (26%) 7 (1) Unallocated corporate costs not attributable to a specific segment
EBITDA and Costs (Ebitda dynamics) Q3 2012 - Q4 2012 EBITDA dynamics (US$ m) Highlights: 180 • EBITDA for Q4 2012 amounted to US$143.8 million (4.8) 9.2 (8.3) 160 8.4 7.7 and was higher than in the previous quarter (Q3 140 2012: US$131.5 million), but lower than Q4 2011 120 100 (US$194.7 million) as a significant portion of gold 143.8 80 sold in Q4 2011 was a carryover from Q3 2011 131.5 60 production 40 20 0 EBITDA Q3 Sales Sales prices COS prices G&A Other EBITDA Q4 2012 volume 2012 FY 2012 - FY 2012 EBITDA dynamics (US$ m) • EBITDA for 12 months ended December 2012 700 (128.9) amounted to US$493.0 million and was lower than 600 (29.6) 73.6 2011 by US$81.3 million (2011: US$574.3 million). (34.1) 500 This decrease was due to lower level of gold sales 37.7 and higher TCC, partly offset by higher average 400 gold price. 300 574.3 493.0 200 100 8 0 EBITDA FY Sales Sales price COS price G&A Other EBITDA FY 2011 volume 2012
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