Nordgold: Profitable Growth in the Challenging Market Environment Nikolai Zelenski, CEO NORD LI (LSE) February 2015
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 with Focus on Africa Neryungri Buryatzoloto 66 Koz 120 Koz Gross Pistol Bay 220E+ Koz Bouly Montagne Bissa Berezitovy d’Or 140E+ Koz 251 Koz 123 Koz Suzdal Aprelkovo 77 Koz 32 Koz Taparko 2014 Revenue by Geography 112 Koz Operating Mines Lefa 205 Koz Russia Developing Assets 34% Kazakhstan 38% Exploration Assets Guinea Burkina Faso Exploration Areas 8% 20% 3 3 Actual production in 2014
Nordgold – a Premium Gold Mining Company Low Cost Producer High Quality Pipeline All-in sustaining costs for 9m Two compelling projects ready 2014 at US$887/oz for construction Company is among lowest cost Several prospective projects in Premium global producers PEA/exploration phase Gold Mining Company Production Growth 985 koz produced in 2014 6 out of 7 years company demonstrated production growth 4 4
Nordgold is Low Cost Producer Compared to Peers • In June’ 13 World Gold Council published guidance on AISC metrics which is proposed to be applied starting from Jan 2014. The general approach is: AISC = EBITDA-based TCC (1) + Sustaining CAPEX (2) • Nordgold’s AISC was US$887/oz in 9m 2014 and US$866/oz in Q3 2014, which is one of the lowest level compared to peers 9m 2014 All In Sustaining Cost ($/oz Au Eq.) 1 023 1 030 1 031 1 063 1 111 1 138 1 183 1,225 1,228 1,246 963 947 918 926 887 844 846 784 754 Source: Company information 5 5 (1) Including stock-piles / product inventory write-down (2) Maintenance, Capitalized stripping, Exploration capex
Peer-leading Track Record of Growth 1 200 985 koz (7) 924 koz (6) 1 000 754 koz (4) 717 koz (5) 800 37% 589 koz (3) 534 koz (2) 600 21% 400 8% 193 koz (1) 200 35% 0 2008 2009 2010 2011 2012 2013 2014 Africa has been a focal point of growth for Nordgold (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) (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 Russia Kazakhstan Guinea Burkina Faso 6 6 (6) Includes 6.9 koz GE of silver production (7) Includes 6.4 koz GE of silver production
Robust Pipeline to Underpin Future Growth Development projects Advanced exploration projects Early exploration projects Delineated resources / reserves Significant drilling performed Potential resource identified Feasibility underway or completed Scoping underway Target delineation Trial production ongoing at Gross Zinigma Kaya Wayin Production in 3-6 years Goengo Production in 6-8 years Burkina Burkina Burkina Production in 1-3 Faso Gross Prognoz (1) Faso Burkina Faso Faso Russia Russia Uryakh 13.3Moz resources years Lefa Corridor Vitimkan Nerchinsk 4.6Moz reserves Russia Guinea Russia Russia Montagne Bouly d’Or Tanzaka Burkina Faso Yeou French Banora Burkina Guiana Burkina Faso Faso Corridor Guinea Brownfield / Satellite Greenfield / Standalone Nordgold pipeline is robust and balanced with early stage and advanced projects 7 7 (1) JV with a partner (50/50)
Proven Strategy in a Lower Price Environment Positive Free Cash Reduce Leverage Continuation of Pay Dividends to 2014 Flow Generation at Through Effective Growth Shareholders Objectives All Operating Mines Debt Management Comprehensive cost Reduced cost of debt Pilot stage operation Interim dividend for Q3 reduction program in and improved liquidity at Gross ongoing place at all mines 2014 of USc3.64/GDR, and debt profile through 9M 2014 Consolidated since Q1 2014 bringing total 9M 2014 refinancing in March Feasibility Study at AISC of US$887/oz, dividend to 2014 2014 representing a 21% USc8.98/GDR Net debt on 31 Dec Bouly on track to be improvement YoY Achievements Q4 2014 dividend to be All mines generated completed in Q1 2015 2014 at US$631 m, and Resource update at reported shortly cash position at positive FCF in Q3 2014, 9M 2014 US$318.6 m Montagne d’Or consolidated FCF Bond buy-back expected in Q1 2015 reached US$161.4m program in progress ♦ ♦ Continue to improve ♦ ♦ Start construction of Dividend payout ratio Continue to reduce Bouly or Gross efficiency of 30% of net profit leverage with target 2015 Strategy ♦ Further upside for FCF attributable to level Net debt/LTM ♦ Continue to invest in generation in 2015 shareholders EBITDA at 1.0x the pipeline 8 8
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