Nord Gold ups net profit 9% in H1 2021 despite 3% production decline
(Kitco News) - Nord Gold, the internationally diversified gold producer, announced today that its refined gold production of 493.1 koz in H1 2021 was marginally ahead of plan, albeit down 3% YoY due to planned production decreases at Gross, Suzdal, Taparko and Lefa mines, offset by strong production performances at the Bissa-Bouly, Taborny and Irokinda mines.
The company said it had delivered better than planned all-in sustaining costs of US$1,049/oz for H1 2021, up just 2% on the same period last year due to higher costs at Gross, Suzdal, Bouly, Taparko mines, partially offset by substantial cost improvements YoY at Bissa and Taborny mines, mainly driven by head grade improvement as well as planned lower sustaining CAPEX at Berezitovy, Bissa and Taborny mines YoY.
The company’s adjusted EBITDA increased by 6% YoY to US$458.9 million in H1 2021 driven by a more favourable gold price environment and Nordgold margin improvement initiatives.
Net profit increased by 9% YoY to US$237.1 million in H1 2021 mainly driven by top line growth. Strong free cash flow generation of US$179.5 million in H1 2021, 2% above H1 2020, was driven by higher earnings which were partly offset by Net Working Capital changes and higher income tax paid YoY.
Nord Gold added that its financial position remains strong with net leverage close to zero at the end of Q2 2021. The company also announced that its Board has declared a dividend of 59.48 US cents per share for H1 2021, representing a total distribution of US$200 million.
Additionally, the company reassured that it remains unaffected by the current political situation in Guinea and that its Lefa mine site continues to operate as normal.
Nordgold is an internationally diversified one-million-ounce gold producer with about 7,800 people operating a portfolio of nine mines (in Burkina Faso, Guinea, Russia and Kazakhstan) and a number of development and exploration projects in West Africa, Eurasia and the Americas. Since 2013, Nordgold has successfully constructed three gold mines, including two in Burkina Faso (Bouly and Bissa) and most recently, the Gross mine in Russia.