16th March 2018
Data source: S&P Global Market Intelligence
Russia-focused gold miner Nord Gold SE will pay out a dividend of US$4.50 per share for the fourth quarter of 2017, representing a total of US$15.3 million, taking the payout for the full year to US$53.6 million, or 15.79 cents per share.
The company on March 15 reported a rise in profit for the fourth quarter to US$52.8 million from US$10.9 million a year earlier.
Higher sales and an increase in the gold price boosted EBITDA and revenue in the quarter to US$140.8 million and US$320.5 million, respectively. The average realized gold was US$1,279/oz, compared to US$1,198/oz in the fourth quarter of 2016.
The company’s total debt as of year-end 2017 was US$997.0 million, up from US$861.6 million the year before. Cash and equivalents at the end of the reporting period fell to US$340.6 million from US$356.3 million at the end of 2016.
The company posted an uptick in refined gold production for the quarter, reaching 251,500 ounces, up 7% on the same period in 2016. Production for the full year climbed 11% to 968,300 ounces. Nord Gold said the increase was driven by the Neryungri, Lefa, Suzdal, Buryatzoloto and Bissa–Bouly projects.
On a yearly basis, the company’s CapEx remained largely flat at US$349.6 million. It boosted exploration spending to US$34.8 million, compared with US$27.9 million in 2016. Net profit for the full year grew 4% to US$166.8, million and EBITDA climbed to US$520.5 million. Revenues rose to US$1.22 billion, from US$1.08 billion in 2016.
In addition, Nord Gold increased its mineral resource base 7% to 33.6 million gold ounces and reported a 2% rise in ore reserves to 15.2 million ounces. The company has also reached an agreement with a group of international banks for a five-year debt facility of US$300 million.
Nord Gold said it intends to use the facility to refinance its existing eurobonds, worth US$448 million, which are set to mature in May. The refinancing will also draw on the company’s current cash holdings.