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Nordgold Q3 output rises on new Russian mine performance

Nordgold’s Gross project in Russia. Credit: Summa N.K. Co. Ltd.

Russian gold producer Nordgold on Wednesday released its operating results for the third quarter and nine months ended September 30, 2019. The company, which has operations in Africa, Eurasia and the Americas, produced a total of 288,900 oz during the quarter, while the average realized gold price was $1,474/oz.

This production was 27% higher year-on-year and 12% higher quarter-on-quarter, driven mainly by the performance of its newly launched Gross mine in Russia, which Nordgold says exceeded expectations in terms of operation ramp-up and recoveries.

The flagship mine, located in southwestern Yakutia, is the third greenfield project developed by Nordgold from exploration to production over the last six years. Based on latest results, the mine is now expected to produce between 230,000-235,000 oz for the full year, compared with the 190,000 oz previously targeted.

“The outstanding performance of our new Gross mine, in Russia, which has exceeded our expectations, is likely to see us beat our initial production plan for the year and I expect Nordgold to be well positioned for a strong performance in 2020,” Nordgold CEO Nikolai Zelenski said.

Nordgold also attributes the output increase to higher volumes of ore processed at the Taborny and Lefa mines in Russia and Guinea respectively, as well as higher recovery rates at the Suzdal mine in Kazakhstan.

In addition, the company also launched trial underground mining operations at the Berezitovy mine in Russia, while continuing production from the open pit.