Net profit of Nordgold in accordance with IFRS for the nine months increased by 39%

MOSCOW, November 17. Net profit of the gold mining company Nordgold, controlled by Alexei Mordashov, according to the international financial reporting standards (IFRS) for the first nine months of 2015 increased compared with the same period of 2014 by 39% to $181 million this is stated in the message of the company.

Revenue for the reporting period decreased by 10% to $865,3 million due to lower gold prices. EBITDA increased by 9% to 426.2 million by increasing operational efficiency and reducing costs, but also due to the positive effect from the fall in the dollar exchange rates of the countries in which Nordgold operates. The EBITDA margin reached 49.3 percent.

Shareholder returns

The Board of Directors of Nordgold approved an interim dividend for the third quarter of 2015 at a total cost of $13 million Total amount of dividends for the first nine months of 2015 of $52.6 million On share Mordashov, who owns over 90% stake in the company, accounting for approximately $48 million in dividends.

The Board of Directors approved a new share buyback programme of GDRs of the company in an amount up to 5 million GDRs for a total amount of up to $15 million buyback Program will start after the current repurchase program.

Since February this year, has a program to repurchase shares of the company in an amount up to 19 million shares for a total amount of up to $30 million as at November Nordgold GDR already bought for a total of $28.6 million


Capital investments by the end of 2015 will be below the original forecast of $300 million primarily due to lower investment in the maintenance of production capacity and capitalised work on the Russian enterprises on the background of the devaluation of the ruble, the report says.

The Board of Directors of the company approved the construction of a new gold mining enterprise gross in Yakutia. The company will start construction of the mine in early 2016. Putting the enterprise into operation is expected two years after the start of construction.

In 2016 Nordgold plans to increase capex by 23% to approximately $370 million, including $60 million on completion of construction and full operation of the mine Bouly in Burkina Faso, and $125 million in the construction of “gross”, as well as investments in exploration, development and Stripping.

“We expect a successful conclusion of the current year and significant progress in 2016. Next year our existing gold mining companies will continue to demonstrate stable operating performance. Nordgold expects growth of volume of production due to the commissioning of a new mine Bouly in the second half of 2016,” – said General Director Nordgold Nikolay Zelensky.

Nordgold has nine operating mines, two projects under development, four projects in late stage exploration, as well as a large number of projects at the stage of early exploration, and licenses in Russia, Kazakhstan, Burkina Faso and Guinea.