JOHANNESBURG (miningweekly.com) – Although LSE-listed Nordgold’s third-quarter gold output decreased 26% year-on-year to 200 700 oz, owing to an unusually severe wet season in West Africa, plant maintenance work at several mines and the effect of delays in refining doré of 15 000 oz at some of its operations, the miner still expected to reach the upper half of its full-year production guidance of 925 000 oz to 985 000 oz.
In its results statement for the three months ended September 30, the company outlined that it would maintain its low-cost performance, with full-year all-in sustaining costs expected to be in the range of $750/oz to $800/oz.
“Our continued focus on cost management means we can comfortably reiterate our full-year guidance and, therefore, maintain our position within the industry's lowest-cost quartile. The low-cost production enables Nordgold to deliver attractive returns to shareholders and to simultaneously invest in its growth projects despite a challenging market environment,” CEO Nikolai Zelenski commented.
The miner, which also reported a 36% decrease in earnings before interest, taxes, depreciation and amortisation from $146.7-million in the third quarter of 2014, to $94.2-million this year – as a result of a lower gold price – highlighted that construction at its Bouly operation, in Burkina Faso, remained on schedule and within budget during the quarter, with production expected to start in the second half of 2016.
The 3.5-million-ounce, $154-million Bouly was located 5 km from Nordgold’s Bissa mine and represented a large low-grade gold mineralisation, favourable for heap leach treatment.
All major engineering, drafting and procurement activities were completed during the quarter, while fabrication and delivery of the first priority equipment was also completed, including the agglomerator, primary crushers and major platework items.
The company further noted that almost 60% of the structural concrete for the processing plant had been poured, with most areas available for structural steel erection to start.
Bouly’s average production would be about 120 000 oz/y over a mine life of ten years.
Meanwhile, Nordgold’s late-stage exploration project Ronguen finalised its feasibility study, with an application for the mining licence filed in the second quarter. Work to engage local communities was also ongoing.
"We look forward to a successful year-end and to considerable further progress during 2016. We expect to see stable output across our portfolio of operating mines and will drive growth through the construction of our heap leach Bouly project,” Zelenski added.