Click to edit Master title style Presentation for Investors February 2017 1
Click to edit Master title style Disclaimer Information contained in this presentation concerns Nord Gold S.E., a company organized and existing under the laws of United Kingdom (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 2 2 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.
Click to edit Master title style Nordgold Listing History … Didn’t Lead to GDR Price Appreciation Strong Operational and Financial Performance … Nordgold’s GDR Price Since Listing (US$) 10 9 2012 2016 8 1 Rebased to Nordgold Stock Price 7 Production 717 869 6 (koz) (24.9)% 5 8-Feb GDR 2 Close Price: 3 4 US$3.42 (56.2)% 6 3 Cash Cost 836 644 (1) 5 (US$/oz) 2 5 4 1 0 Jan-12 Aug-12 Mar-13 Sep-13 Apr-14 Nov-14 Jun-15 Dec-15 Jul-16 Feb-17 Number 8 9 Gold Price (rebased to Nordgold stock price) Nordgold of Mines ♦ Trading started on 19 January 2012 after the completion of split-off from Severstal 19-Jan-2012 1 ♦ Announced offer for outstanding shares in HRG to streamline the corporate structure 19-Oct-2012 2 ♦ Completed construction of Bissa mine on time and within budget 17-Jan-2013 3 Reserves 12.7 (2) 14.0 (3) (moz) ♦ Adopted a new dividend policy with 30% payout ratio of net profit Nov-2013 4 24-Feb – ♦ Executed a US$30m buyback programme 5 31-Dec-2015 ♦ Launched Bouly gold heap leach operation in Burkina Faso on time and below budget 19-Sep-2016 6 Source: FactSet as of 8 February 2017. 3 3 Note: (1) As of 9M2016. (2) As of 1 January 2012. (3) As of 31 December 2015.
Nordgold’s Efforts to Deliver Value to Shareholders Click to edit Master title style ♦ Simplified corporate structure through consolidation of HRG and Buryatzoloto minority shareholders Corporate Shares exchange element of HRG consolidation led to increase of free-float from 10.6% to 15.6% Optimisation ♦ For 4 years since 2012 production increased by 21% whereas TCC declined by 23% in the inflationary environment ♦ Successful launch of Bissa and Bouly – ahead of schedule and within budget; steadily advancing series of Track Record of other projects in Russia, French Guiana and Canada Achieving ♦ Increase in reserves from 12.7 moz to 14.0 moz Operating Targets ♦ Disciplined M&A strategy – value accretive acquisitions with strict criteria (Northquest, Ronguen Gold Project, Columbus Gold) ♦ Since listing the Company consistently generated meaningful Free Cash Flow ♦ Focused on delivering dividends to its shareholders – 4.4% average dividend yield since IPO (1) among the Capital Return highest in the industry to Shareholders ♦ US$31 million share buyback programme in 2015 and 2016 ♦ Q4 2016 dividends to be paid prior to completion of GDR Buyback Commitment to ♦ Strong Independent Board Corporate ♦ Regular participation of senior management in conferences / investor meetings Governance and ♦ Detailed quarterly operating and financial reporting Transparent ♦ Guidance on costs / production targets; track record of over delivery in most years Market ♦ Regular CMDs Communication Source: Company data, Bloomberg. 4 4 Note: (1) According to Bloomberg.
Click to edit Master title style Limited Free Float Driving Under-Valuation % Free FV / EBITDA 3M Avg. Daily Trading Volume Low liquidity and trading volumes restrain US$ m Float 2017E GDRs price to fully reflect Nordgold’s fundamental value 95.5% 12.3x Randgold 65.0 At current trading levels, an equity placing to IAMGOLD 99.5% 6.3x 25.7 increase liquidity expected to be prohibitively dilutive for existing shareholders Anglogold 21.6 97.5% 5.0x Polymetal 74.8% 7.1x 15.9 Elimination of public value benchmark would enhance Nordgold’s strategic flexibility Gold Fields 11.9 87.8% 3.6x Semafo 99.8% 7.4x 10.7 Strong balance sheet provides access to Acacia 5.1 36.0% 4.8x capital for operating and strategic initiatives in near-term Highland Gold 46.8% 6.2x 3.4 Potential shareholder value creation through Petropavlovsk 0.2 74.1% 5.3x a fully-marketed re-listing subject to market conditions 9.3% 3.7x Nordgold 0.1 Source: Bloomberg, FactSet. Market data as of 8 February 2017. 5 5
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