Nordgold: Q3 2014 Financial and Operating Results November 20, 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 2 intend to conduct a public offering of any securities in the United States
Presenters Today Louw Smith Nikolai Zelenski Dmitry Guzeev Chief Operating Officer Chief Financial Officer Chief Executive Officer 3
Key Highlights » Q3 2014 gold equivalent production of 270.6 koz, an 11% increase YoY and 2% increase QoQ. » Revenue in Q3 2014 was US$344.7 million, a 6% increase compared with US$325.3 million in Q3 2013 and almost flat QoQ (Q2 2014: US$342.1 million). » Q3 2014 EBITDA of US$146.7 million was up 53%YoY and 4% QoQ. » Consolidated TCC fell to US$669/oz in Q3 2014 vs. US$843/oz in Q3 2013 and US$699/oz in Q2 2014. » Q3 2014 AISC was US$866/oz, 19% lower YoY (US$1,066/oz). » Positive free cash flow of US$88.8 million was generated in Q3 2014. » Interim dividend for Q3 2014 of USc3.64/GDR has been approved. Outlook: » 2014 FY production forecast is reaffirmed at the upper end of 900-950 koz of gold . » 2014 AISC is further reduced to US$900-950 per oz (previous range was US$950-1,000/oz). » 2014 capex is expected to be approximately US$180 million (revised down from original guidance of US$200 million). 4
Financial and Operating Results US$ m (1) Change, Change, Change, Q3 2014 Q3 2013 (2) Q2 2014 9m 2014 9m 2013 (2) YoY QoQ YoY Financial Results Revenue 344.7 325.3 6% 342.1 1% 961.8 942.4 2% 212.8 255.2 (17%) 201.7 6% 599.4 720.0 (17%) Cost of sales 146.7 95.8 53% 141.3 4% 391.5 293.3 33% EBITDA 42.5% 29.4% 13.1pp 41.3% 1.2pp 40.7% 31.1% 9.6pp EBITDA margin Operating cash flow 138.3 101.8 36% 83.8 65% 272.0 205.3 32% Capital expenditures 40.5 52.1 (22%) 48.2 (16%) 111.0 181.8 (39%) Operating Results 270.6 244.7 11% 265.2 2% 746.9 661.0 13% Gold production (koz) Gold sold (koz) 269.2 245.1 10% 264.9 2% 745.7 661.1 13% Avg. realised gold price 1,281 1,327 (3%) 1,292 (1%) 1,290 1,426 (10%) (US$/oz) Total cash costs 669 843 (21%) 699 (4%) 694 885 (22%) (US$/oz) (1) Unless otherwise stated (2) Restated 5
Production Update Gold Production 2012-2014, koz Gold production in Q3 2014 was 270.6 koz, an 11% increase 300 YoY and 2% increase QoQ. 250 Production in Q3 2014 was mainly driven by: 200 Eight out of Nordgold’s nine mines achieved a YoY 150 production increase and double-digit growth YoY was 100 recorded at five of our mines. 50 Lefa produced 55.7 koz of gold, up 16% compared with 0 47.9 koz in Q3 2013, and up 20% compared with 46.5 koz Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 in Q2 2014. In Q3 2014, Lefa commenced mining at two 2012 2012 2013 2013 2013 2013 2014 2014 2014 new pits: Firifirini and Kankarta. Suzdal’s gold in d oré production Gold Production by Mine, Q3 2014 Buryatzoloto Q3 2014 gold output was up 38% YoY and 6% QoQ to 32.2koz, driven by a higher head grade (5.81g/t in Q3 2014). 4% 9% Bissa Since the start of the pilot operation in February 2014 to 26% Lefa the end of September 2014, Nordgold mined 1.8 million 7% Taparko tonnes of ore at Gross. Total run of mine at the end of Q3 2014 amounted to 4.4 million tonnes, with a stripping ratio Buryatzoloto 12% of 1.5 tn/tn. Berezitovy Suzdal 2014 FY production forecast is reaffirmed at the upper end of 21% Neryungri 12% the range 900-950 koz of gold . Aprelkovo 9% 6
Selected Production Update: Berezitovy Key Achievements Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Operating results • Gold production in Q3 2014 was 32.3 koz, +15% YoY and + 1% QoQ. Ore mined, kt 599 706 492 510 68 • In 9m 2014, gold production increased by 8% YoY to 91.3 Ore milled, kt 437 471 448 462 415 koz, driven by increased volumes of ore milled and improved recovery. Grade, g/t 2.07 2.30 2.00 2.34 2.25 TCC improved significantly YoY in Q3 2014 to US$576/oz • Recovery, % 86.9 91.0 89.1 90.4 90.6 mainly due to higher head grade. Gold production, 28.0 35.6 27.0 32.1 32.3 Koz • Q3 2014 AISC was US$680/oz (-21% YoY and -10% QoQ). In Q3 2014, ore mined decreased by 87% QoQ to 68 kt and • Deliveries in Q4 2014 the stripping ratio increased to 52.17 tn/tn. • Processing volumes in Q4 2014 are expected to consist • This was due to the mine plan focusing on Phase 3 cutback of 427 kt of ore to be mined from Phase 1 and historical during the rainy season and the process plant downtime high-grade stockpiles. period. • Waste stripping of the Phase 3 cutback will continue in Ore milled during the quarter totaled 415 kt, supplied mostly • order to assess ore for future supplies. from existing stockpiles. 7
Berezitovy: Pit Design Phase 3 Phase 2 Phase 1 Mining Plan • Current Life of Mine open pit design showing final phases. • Current and 2015 ore mined from Phase 1. • Phase 2 completed in 2015. • Phase 3 cutback waste mining in progress, and will access ore in 2016. 8
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