Nord Gold increased its net profit in H1 2015 to US$134.7 million, up by 83% from H1 2014. EPS were US$0.33 against US$0.17 in the previous half year. EBITDA for H1 2015 was US$332.1 million, up 36%.
The main reasons for the improved performance were an increase in gold production coupled with a dramatic reduction in unit operating costs. Nord Gold recorded a 7% increase in gold production, to 507.5 koz, which helped boost revenue by 4% to US$640.3 million despite a 7% reduction in the gold price realised. Gold sales in H1 included 24.5 koz of refined gold and 28.5 koz of gold doré, which were produced in the end of 2014 and only sold in Q1 2015.
The company managed to reduce cash costs by 21%, to US$558/oz and all-in sustainable costs (AISC) to US$722/oz.
Production guidance for 2015 as a whole is 925-985 koz of gold with AISC in the range US$750-800/oz.
As at 30 June, cash and cash equivalents were US$397.8 million and net debt was US$546.2 million after the company almost doubled free cash flow yoy, to US$141.2 million.
The company has declared an interim dividend of USc4.12/share, taking the total for the first half of 2015 to USc10.52/share.
Nord Gold H1 net profit up 83%: NORD