Nordgold Reports Higher Q3 Output on New Mine Performance

Russian gold producer Nordgold, which has mining operations in Africa, Eurasia and the Americas, produced 288 900 oz in the third quarter, while the average realized gold price was $1 474/oz, the company said, according to

Production was 27% higher year-on-year and 12% higher quarter-on-quarter.

The company attributed the higher output mainly to the quicker-than-expected ramp-up and better-than-expected recoveries at its new Gross mine in Russia.

The flagship mine is now expected to produce between 230 000 oz and 235 000 oz of gold for the full-year, compared with the 190 000 oz previously targeted.

The mine underwent an expansion to process 14-million tonnes of ore a year, instead of an initially planned 12-million tonnes a year.

“The outstanding performance of our new Gross mine, in Russia, which has exceeded our expectations, is likely to see us beat our initial production plan for the year and I expect Nordgold to be well positioned for a strong performance in 2020,” said CEO Nikolai Zelenski.

Meanwhile, the quarter-on-quarter gold production increase was also driven by higher volumes of ore processed at the Taborny and Lefa mines, in Russia and Guinea, respectively, as well as higher recovery rates at Suzdal, in Kazakhstan.

The company in the quarter under review launched trial underground mining operations at the Berezitovy mine, in Russia, while continuing production from its open pit.

“Further, on October 9 we successfully raised guaranteed notes valued at $400-million, due 2024. The new Eurobond issue strengthens our balance sheet and debt maturity profile, while also freeing up cash flows to support our activities, including our growth projects,” said Zelenski.