Bissa mine
JOHANNESBURG (miningweekly.com) – LSE-listed Nordgold on Wednesday said refined gold output of 211 100 oz was achieved during the first quarter of the year – a 15% increase on the prior corresponding period as eight of the gold producer’s nine mines achieved a year-on-year production increase.
Double-digit production growth of 69% and 13% respectively was achieved at Nordgold’s Bissa gold mine and Taparko mine, both in Burkina Faso, while its Guinea-based Lefa mine experienced a 17% hike in output.
Nordgold’s Russia-based mines Neryungri and Aprelkovo saw growth of 13% and 20% respectively, followed by Buryatzoloto and Berezitovy, which recorded single-digit output growth of 7% and 3% respectively.
However, the group’s Suzdal mine, in Kazakhstan, underperformed, with production falling nearly 100% during the first quarter as its refined gold production and sales were affected by negotiations with the National Bank of Kazakhstan and a newly built refinery plant Tau-Ken Altyn.
Nordgold pointed out that the “issue” had been resolved and Suzdal’s doré would be refined and sold during the second quarter of the year.
"This has been a very strong start to the year, building on the progress seen in the second half of 2013. I am delighted to see an improved production performance across nearly the entire asset portfolio,” said Nordgold CEO Nikolai Zelenski, reiterating the company’s 2014 full year production guidance of between 870 000 oz and 920 000 oz.
“These improvements give me confidence that Nordgold is well positioned to deliver in a lower price environment and on track to meet our 2014 full year production target.”
A “significantly” lower realised gold price resulted in a 7% year-on-year decline in first-quarter revenue to $274.8-million, while lower refined gold production and sales volumes led to a 16% fall in revenue when compared with the $328.8-million revenue generated in the fourth quarter of last year.
The average realised gold price in the first quarter of 2014 was $1 299/oz – a decrease of 20% compared with the $1 615/oz during the first quarter of 2013 and a 4% increase compared with the fourth quarter 2013 price of $1 250/oz.