Nordgold produced 765 koz of gold in 9M 2021, in line with expectations
(Kitco News) - Nord Gold (Nordgold) announced today that for the nine months ended 30 September 2021 (9M 2021), its refined gold production remained broadly stable at 764.5 thousand ounces of gold equivalent (koz), in line with the mine plans and 1% lower than in 9M 2020 (772.2 koz).
The company said that the planned lower production at Gross, Taparko, and Suzdal mines was offset by strong performances at the Bissa-Bouly, Taborny and Irokinda mines.
Importantly, Nordgold added that the Gross mine Expansion Project continues to progress on time and within budget. In September 2021, Nordgold completed Gross Phase 1 Expansion of mining and processing capacity to 18 million tonnes of ore per year (mtpa), up from 16 million tonnes.
Phase 2 of the Gross Expansion Project to raise processing capacity to 26 mtpa is well advanced and on track, with completion expected in 2024, the company noted.
Moreover, according to the company's statement, in October 2021, Moody's upgraded Nordgold corporate family rating (CFR) to Ba1 from Ba2 and the probability of default rating (PDR) to Ba1-PD from Ba2-PD. The outlook remains stable.
Additionally, Nordgold said it intends to pay a minimum dividend of US$400m in two equal installments on the back of the company's H1 2021 and full year 2021 financials. Starting from 2022, Nordgold intends to pay minimum dividends equivalent to 50% of its free cash flow pre-growth capital expenditure, subject to a Net Debt / EBITDA threshold of 1.5x.
CEO Nikolai Zelenski commented, «I am pleased to report a solid nine months results. Our operations were supported by a strong gold price environment and gold production was in line with expectations. We are on track to meet our full year plans."
"The combination of a strong asset portfolio, high potential low-cost development projects and a continued focus on operational improvement will enable us to maintain our performance despite inflationary pressures. This gives confidence in our future and our ability to continue to develop our business throughout the cycle," he added.
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.