The successful launch of the Gross mine, in Russia, in the third quarter of 2018 is giving UK-based Nordgold confidence in its ability to deliver on its next organic growth project – a gold mine in French Guiana, CEO Nikolai Zelenski said on Tuesday.
Nordgold owns Montagne d’Or in a joint venture (JV) with Canada’s Columbus Gold and the partners in November 2018, declared their official decision to move forward with permitting and development of the gold mine.
“Montagne d’Or has the potential to be a major driver of growth, providing jobs, infrastructure and revenue for the host country,” Zelenski said of the mine development that will require a $361-million capital outlay.
The project is estimated to employ 900 people at the peak of construction and create 750 permanent direct jobs, as well as about 3 000 indirect jobs.
The proposed openpit mining operation will produce 237 000 oz/y at an average all-in sustaining cost (AISC) of $749/oz.
Nordgold is in a strong position to capitalise on its organic growth opportunities, Zelenski said in the company’s 2018 financial results announcement on Tuesday.
The miner, which owns operating mines in Burkina Faso and Russia, produced 907 000 oz of gold equivalent in 2018, which was a 6% decrease on 2017 and was impacted by a temporary increase in lower grades.
AISC jumped 16%, which Norgold explained was because of capitalised striping at the West African mines and the Berezitovy mine in Russia associated with pit cutbacks for future ore supply.
Net profit plunged by 45% to $91.9-million, but this was mainly the result of impairment charges. Adjusted earnings before interest, taxes, depreciation and amortisation fell by 10% to $470.2-million.
Zelenski described Nordgold’s performance as robust, despite the lower production and profit.