Q3 2014 Financial and Operating Results November 20, 2014 1 - - PowerPoint PPT Presentation

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Nordgold: Q3 2014 Financial and Operating Results

November 20, 2014

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Information contained in this presentation concerns Nord Gold N.V., a company organized and existing under the laws of Netherlands (the “Company”, and together with its subsidiaries, the “Group”), and is for general information purposes only. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on information

• btained from sources believed to be reliable but does not guarantee its accuracy or completeness.

These materials may contain forward-looking statements regarding future events or the future financial performance of the Group. One can identify forward looking statements by terms such as “expect”, “believe”, “estimate”, “anticipate”, “intend”, “will”, “could”, “may”, or “might”, the negative of such terms or other similar expressions. These forward-looking statements include matters that are not historical facts and statements regarding the Group’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of

• perations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Group operates. By their nature, forward-

looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that the Groups’ actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Group

• perates may differ materially from those described in or suggested by the forward-looking statements contained in these materials. In

addition, even if the Group’s results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Group operates are consistent with the forward-looking statements contained in these materials, those results or developments may not be indicative of results or developments in future periods. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in the states where the Group operates, changes in the world [gold] market, as well as many other risks specifically related to the Group and its operations. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in these materials. None of the Company nor any of its shareholders, directors, officers or any other person accepts any liability whatsoever for any loss howsoever arising from any use of the contents of this presentation or otherwise arising in connection therewith. The presentation and the information contained herein does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities of the Company have not been, and will not be, registered under the US Securities Act of 1933, as amended (the “Securities Act”). Accordingly, the securities of the Company may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Company does not intend to conduct a public offering of any securities in the United States

Disclaimer

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Presenters Today

Nikolai Zelenski

Chief Executive Officer

Louw Smith

Chief Operating Officer

Dmitry Guzeev

Chief Financial Officer

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Key Highlights

» Q3 2014 gold equivalent production of 270.6 koz, an 11% increase YoY and 2% increase QoQ. » Revenue in Q3 2014 was US$344.7 million, a 6% increase compared with US$325.3 million in Q3 2013 and

almost flat QoQ (Q2 2014: US$342.1 million).

» Q3 2014 EBITDA of US$146.7 million was up 53%YoY and 4% QoQ. » Consolidated TCC fell to US$669/oz in Q3 2014 vs. US$843/oz in Q3 2013 and US$699/oz in Q2 2014. » Q3 2014 AISC was US$866/oz, 19% lower YoY (US$1,066/oz). » Positive free cash flow of US$88.8 million was generated in Q3 2014. » Interim dividend for Q3 2014 of USc3.64/GDR has been approved.

Outlook:

» 2014 FY production forecast is reaffirmed at the upper end of 900-950 koz of gold. » 2014 AISC is further reduced to US$900-950 per oz (previous range was US$950-1,000/oz). » 2014 capex is expected to be approximately US$180 million (revised down from original guidance of US$200

million).

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Financial and Operating Results

US$ m (1) Q3 2014 Q3 2013(2) Change, YoY Q2 2014 Change, QoQ 9m 2014 9m 2013(2) Change, YoY Financial Results Revenue 344.7 325.3 6% 342.1 1% 961.8 942.4 2% Cost of sales 212.8 255.2 (17%) 201.7 6% 599.4 720.0 (17%) EBITDA 146.7 95.8 53% 141.3 4% 391.5 293.3 33% EBITDA margin 42.5% 29.4% 13.1pp 41.3% 1.2pp 40.7% 31.1% 9.6pp Operating cash flow 138.3 101.8 36% 83.8 65% 272.0 205.3 32% Capital expenditures 40.5 52.1 (22%) 48.2 (16%) 111.0 181.8 (39%) Operating Results Gold production (koz) 270.6 244.7 11% 265.2 2% 746.9 661.0 13% Gold sold (koz) 269.2 245.1 10% 264.9 2% 745.7 661.1 13%

• Avg. realised gold price

(US$/oz) 1,281 1,327 (3%) 1,292 (1%) 1,290 1,426 (10%) Total cash costs (US$/oz) 669 843 (21%) 699 (4%) 694 885 (22%)

(1) Unless otherwise stated (2) Restated

 Gold production in Q3 2014 was 270.6 koz, an 11% increase

YoY and 2% increase QoQ.

 Production in Q3 2014 was mainly driven by:  Eight out of Nordgold’s nine mines achieved a YoY

production increase and double-digit growth YoY was recorded at five of our mines.

 Lefa produced 55.7 koz of gold, up 16% compared with

47.9 koz in Q3 2013, and up 20% compared with 46.5 koz in Q2 2014. In Q3 2014, Lefa commenced mining at two new pits: Firifirini and Kankarta.

 Buryatzoloto Q3 2014 gold output was up 38% YoY and

6% QoQ to 32.2koz, driven by a higher head grade (5.81g/t in Q3 2014).

 Since the start of the pilot operation in February 2014 to

the end of September 2014, Nordgold mined 1.8 million tonnes of ore at Gross. Total run of mine at the end of Q3 2014 amounted to 4.4 million tonnes, with a stripping ratio

• f 1.5 tn/tn.

 2014 FY production forecast is reaffirmed at the upper end of

the range 900-950 koz of gold.

50 100 150 200 250 300 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 26% 21% 9% 12% 12% 7% 9% 4% Bissa Lefa Taparko Buryatzoloto Berezitovy Suzdal Neryungri Aprelkovo Suzdal’s gold in doré production

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Production Update

Gold Production by Mine, Q3 2014 Gold Production 2012-2014, koz

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Selected Production Update: Berezitovy

Key Achievements

• Gold production in Q3 2014 was 32.3 koz, +15% YoY and +

1% QoQ.

• In 9m 2014, gold production increased by 8% YoY to 91.3

koz, driven by increased volumes of ore milled and improved recovery.

• TCC improved significantly YoY in Q3 2014 to US$576/oz

mainly due to higher head grade.

• Q3 2014 AISC was US$680/oz (-21% YoY and -10% QoQ).
• In Q3 2014, ore mined decreased by 87% QoQ to 68 kt and

the stripping ratio increased to 52.17 tn/tn.

• This was due to the mine plan focusing on Phase 3 cutback

during the rainy season and the process plant downtime period.

• Ore milled during the quarter totaled 415 kt, supplied mostly

from existing stockpiles.

Operating results Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Ore mined, kt 599 706 492 510 68 Ore milled, kt 437 471 448 462 415 Grade, g/t 2.07 2.30 2.00 2.34 2.25 Recovery, % 86.9 91.0 89.1 90.4 90.6 Gold production, Koz 28.0 35.6 27.0 32.1 32.3

Deliveries in Q4 2014

• Processing volumes in Q4 2014 are expected to consist
• f 427 kt of ore to be mined from Phase 1 and historical

high-grade stockpiles.

• Waste stripping of the Phase 3 cutback will continue in
• rder to assess ore for future supplies.

Berezitovy: Pit Design

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Phase 1 Phase 2 Phase 3

Mining Plan

• Current Life of Mine open pit design

showing final phases.

• Current and 2015 ore mined from Phase 1.
• Phase 2 completed in 2015.
• Phase 3 cutback waste mining in progress,

and will access ore in 2016.

Nordgold Q3 2014 AISC by Mine, US$/oz

200 400 600 800 1,000 1,200 20 40 60 80 100 120 140 160 180 200 220 240 260

1 058 987 680 890 528

Lefa Buryatzoloto Suzdal Aprelkovo Berezitovy Bissa

Nordgold US$866/oz

873

Taparko

 For

Q3 2014 Nordgold’s AISC was US$866/oz, which is 19% lower than in Q3 2013 (US$1,066/oz) due to an 11% production increase, 21% TCC decrease partially offset by 12% increase in sustaining capex.

 In

9m 2014, Nordgold’s AISC was US$887/oz, down 21% YoY.

 Taparko appeared to be the highest-cost

asset reported Q3 2014 AISC at US$1,112/oz

• n the back of the temporarily higher

stripping. FY 2014 AISC guidance is further reduced to US$900/oz – US$950/oz. At such AISC levels we expect to continue to generate robust free cash flow.

Note: Sustaining (“stay-in-business”) CAPEX = CAPEX necessary to sustain current production rates at Nordgold’s mines 1,204 1,103 1,066 1,013 893 905 866

200 400 600 800 1,000 1,200 1,400 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 FY 2014 900-950

1 112 1 079

Neryungri

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All In Sustaining Cost (AISC)

Nordgold AISC 2013-2014, US$/oz

13.1 15.3 1.7 8.2 1.5 14.5 13 15.2 35.4 32.1 17.5 19.0 5.4 4.6 6.9 6.2 2.7 0.1

10 20 30 40 50 60

3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Mine construction Exploration Maintenance Development

US$ 50m US$ 48m US$ 41m

 Capital expenditure in Q3 2014 totaled

US$40.5 million, including US$6.9 million for exploration and evaluation.

 In 2014, we expect capex to be approximately

US$180 million (-10% from previous guidance

• f US$200 million), including:
• approximately US$30 million for

exploration

• approximately US$80 million for

maintenance

• approximately US$27 million for

expansion and development, including rollout of SAP system across the mines

• approximately US$40 million for

capitalised stripping works

• US$3 million for Gross pilot stage
• peration support

 In the current challenging market environment

we are constantly monitoring our capex projects

US$ 52m

111.0 0.0 0.9 0.9 4.2 6.9 9.1 12.1 16.3 35.7 7.7 16.9

40 80 120 US$ 22m

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Disciplined Approach to Capital Expenditure

9m 2014 CAPEX segmental breakdown, US$ m Quarterly CAPEX breakdown, US$ m

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Key Objectives 2014 Targets 9m 2014 Achievements

Reduce Leverage Through Effective Debt Management Continuation of Growth

On Track to Realize Short-Term Strategy

♦ Organic debt reduction through positive FCF generation ♦ Effective existing portfolio management to obtain favourable terms ♦ Nordgold entered into a 5-year facility agreement with Sberbank for the amount of US$500 million ♦ Refinancing reduced cost of debt and improved our liquidity position and debt profile ♦ Net debt position at September 30, 2014 was US$635.0 million, US$88.9 million lower than net debt at December 31, 2013 (US$723.9 million) ♦ Develop our existing pipeline of high quality greenfield and brownfield projects through focused exploration expenditure ♦ Evaluate potential purchases of premium-quality reserves to further enlarge the reserve base ♦ Since the start of the pilot operation, a total of 1.8 million tonnes of ore has been mined at Gross in 9m 2014 ♦ 14-month drill programme commenced at Montagne d’Or in November 2013 has now been completed. A new resource update will be ready in Q1 2015

Pay Dividends to Shareholders

♦ Nordgold has a policy of paying a dividend equivalent to 30% of profits attributable to shareholders ♦ Interim dividend for Q3 2014 of USc3.64/GDR approved, the record date is December 4, 2014 ♦ The total 9m 2014 dividend is USc8.98/GDR ♦ We remain focused on delivering a dividend to our shareholders

Positive Free Cash Flow Generation at All Operating Mines

♦ We are targeting positive FCF at all our

• perating mines in 2014 through cost,

working capital and capex optimization and mining model update ♦ BSN’s targeted effect on 2014 EBITDA is expected approximately US$55 million ♦ Consolidated AISC declined 21% YoY to US$887/oz ♦ Lefa TCC decreased by 40% YoY to US$905/oz ♦ All mines generated positive FCF in Q3 2014 ♦ Consolidated positive FCF was US$161.4 million ♦ Cash and cash equivalents as at September 30, 2014 were US$366.0 million

Project Key Parameters Key Achievements and Milestones

Bouly

Burkina-Faso (Bissa Satellite)

♦ Technology: Open pit heap leach ♦ R&R: 1 Moz at 0.75g/t in M&I with potential to increase to 2-3 Moz of resources ♦ Capacity: 140 koz of gold pa ♦ Stage: PEA completed ♦ In-house Preliminary Economic Assessment completed in Q2 2014, resulted in robust economic data ♦ The decision was made to progress the project towards a Feasibility Study which is expected to be completed in Q2 2015 ♦ The results of the drilling programme will be finalized in Q4 2014

Montagne d’Or

French Guyana (Standalone)

♦ Technology: open-pit ♦ R&R: 4.0 Moz at 1.1 g/t Inferred (Coffey Mining, June 2014) ♦ Capacity: 150+ koz of gold pa ♦ Stage: Scoping study in progress ♦ 14-month drill programme, launched in November 2013, has been completed ♦ SRK awarded the contract to complete a PEA, which is expected to be delivered in Q1 2015 ♦ An environmental study is progressing on schedule ♦ Nordgold’s representative was appointed to Columbus’s BoD

Gross

Russia, Yakutia (Neryungri Satellite)

♦ Technology: Open pit heap leach ♦ R&R: 4.6 Moz at 0.73g/t in reserves, 13.3Moz at 0.56g/t in resources ♦ Capacity: 12 Mt of ore pa, 220 koz

• f gold pa

♦ Stage: FS approved by Board ♦ 1.8 Mt of ore to be mined at Gross in 2014 ♦ Pilot stage operations to process ore from Gross was launched at the satellite Neryungri mine ♦ To the end of September we mined 1.8Mt at Gross and expect to mine 430kt of ore in Q4 2014 ♦ The target to process Gross ore at Neryungri mine will be reached in Q4 2014

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Pipeline Update

Appendix

Financial and Operating Dynamics

• Gold production in Q3 2014 was 270.6 koz, a 11% increase on Q3

2013 (244.7 koz)

• In Q3 2014 eight out of Nordgold’s nine mines achieved a YoY

production increase, with double digit growth at Taparko, Lefa, Buryatzoloto, Berezitovy and Neryungri

• Buryatzoloto gold production for Q3 2014 was 32.2 koz, up 38%

compared with Q3 2013 (23.4 koz) driven by higher head grade, which reached 5.62 g/t

• EBITDA in Q3 2014 increased by 53% YoY to US$146.7 million

driven by improved operational efficiency, higher production volumes and strict cost control, which offset lower prices

• EBITDA margin for Q3 2014 was 42.5% vs. 29.4% in Q3 2013 and

41.3% in Q2 2014

• Management is focused on achieving increased efficiency at all

mines to further reduce total cash costs.

20 40 60 80 100 120 140 160 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 96 104 147 141 101 245 263 211 50 100 150 200 250 300 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 265 271

* - Restated in 2013, see Note 2 in Financial Statements

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Key Q3 2014 Financial Results Key Q3 2014 Operating Results Quarterly Production, koz Quarterly EBITDA*, US$ m

Financial Highlights by Mine

(2) The figures for Q3 2013 were restated due to a change in accounting policy. For more information see Note 2 in the Interim Condensed Consolidated Financial Statements

Revenue Q3 2014 Q3 2013 Change Q2 2014 Change Bissa 87.3 88.6 (1%) 85.1 3% Taparko 31.2 29.3 6% 39.5 (22%) Lefa 70.8 63.9 11% 60.2 18% Buryatzoloto 43.2 30.8 40% 39.3 10% Berezitovy 41.5 36.7 13% 41.2 1% Neryungri 31.1 28.7 8% 21.4 45% Aprelkovo 16.3 15.4 6% 9.5 72% Suzdal 23.5 32.0 (27%) 46.1(1) (49%) Total Revenue 344.7 325.3 6% 342.1 1% EBITDA Q3 2014 Q3 2013 Change Q2 2014 Change Bissa 55.8 57.7 (3%) 53.1 5% Taparko 11.8 6.7 76% 15.2 (22%) Lefa 23.7 (4.2) n.a. 19.1 24% Buryatzoloto 16.2 7.2 125% 15.2 7% Berezitovy 21.6 12.5 73% 20.1 7% Neryungri 11.1 3.8 192% 4.7 136% Aprelkovo 4.5 3.4 32% 1.0 350% Suzdal 8.3 15.1 (45%) 21.9 (1) (62%) Other (6.3) (6.4) n.a. (9.0) n.a. Total EBITDA(2) 146.7 95.8 53% 141.3 4%

(1) Suzdal’s doré produced in Q1 2014 was refined and sold during Q2 2014 and therefore was accounted in Q2 2014 revenue, EBITDA, net profit and Operating Cash Flows

21% 34% 7% 38% Guinea Burkina Faso Kazakhstan Russia

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Revenue Breakdown by Region Q3 2014 EBITDA Breakdown by Region Q3 2014 Selected Financials by Segment (US$ m)

16% 44% 5% 35% Guinea Burkina Faso Kazakhstan Russia

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Nordgold TCC by Mine – Focus on Reducing Cost Pressures

Nordgold Cash Cost Curve (Q1 2014)

Bissa Suzdal Buryatzoloto Neryungri Aprelkovo Berezitovy LEFA Total Cash Costs, US$ /oz

Nordgold TCC: US$719 / oz

Production, koz Buryatzoloto

Nordgold Cash Cost Curve* (Q3 2013)

200 400 600 800 1,000 1,200

20 40 60 80 100 120 140 160 180 200

1,086 1,073 878 706 670 609 457 875

Nordgold Cash Cost Curve (Q2 2014)

Production, koz Aprelkovo LEFA Total Cash Costs, US$ /oz

Nordgold TCC: US$699 / oz

Production, koz Suzdal Neryungri Aprelkovo LEFA Total Cash Costs, US$ /oz

Nordgold TCC: US$843 / oz

Neryungri

* - Restated in 2013, see Note 2 in Financial Statements

Nordgold Cash Cost Curve (Q3 2014)

200 400 600 800 1,000 1,200 20 40 60 80 100 120 140 160 180 200 220 240 260 629 740 858 915 1,093

Total Cash Costs, US$ /oz Production, koz

Nordgold TCC: US$669 / oz

Buryatzoloto

Buryatzoloto

Buryatzoloto

Neryungri

Neryungri Neryungri

Bissa

Bissa

Bissa

Bissa

Berezitovy Suzdal Taparko Lefa Aprelkovo

Taparko Berezitovy Lefa Aprelkovo Taparko Berezitovy Lefa Suzdal Aprelkovo

Suzdal

Neryungri

Taparko Berezitovy Aprelkovo Lefa

476 605 822 Suzdal Buryatzoloto 200 400 600 800 1,000 1,200 20 40 60 80 100 120 140 160 180 200 220 240 260 739 776 788 788 976 782 576 441 Bissa Berezitovy

Neryungri

Lefa Taparko Buryatzoloto Suzdal Aprelkovo 200 400 600 800 1,000 1,200 1,400 20 40 60 80 100 120 140 160 180 200 220 240 459 1,006 1,376 855 992 824 655 842 Bissa Suzdal Berezitovy Taparko Buryatzoloto Aprelkovo

Neryungri

Lefa

 As of September 30, 2014 Nordgold’s total debt was

US$1,001.0 million, net debt was US$635.0 million, and net debt/EBITDA decreased to 1.3x.

 In Q1 2014, Nordgold entered into a 5 year facility

agreement with Sberbank for US$500 million. The proceeds from the facility were partially used to repay Nordgold’s existing debt facilities, with the balance being used for general corporate purposes.

 ST debt has been almost eliminated entirely post

refinancing, and the first debt repayment will be due in 2016.

 The refinancing helped us to reduce our cost of debt

and improved our liquidity position and debt profile.

1,039 968 1,000 994 1,001 775 724 730 687 635 4.0% 4.5% 5.0% 5.5% 6.0% 250 500 750 1,000 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

Total debt Net debt Avg interest rate (RHS)

125 167 666 42 200 400 600 2014 2015 2016 2017 2018 2019

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Debt Profile and Cost

Debt Maturity Schedule, US$m Debt (in US$m) and Average Interest Rate Dynamics

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Current cash position bridge Q3 2014, US$ m

Key Points:

EBITDA to Operating cash flow reconciliation – Q3 2014, US$ m

Cash Flow and Net Working Capital

• The Company's cash and cash equivalents as at September

30, 2014 were US$366.0 million with net debt of US$635.0 million, compared with US$244.0 million cash and cash equivalents as at December 31, 2013, and net debt of US$723.9 million.

• Nordgold generated positive free cash flow of US$88.8

million in Q3 2014.

• Cash flows from operating activities for Q3 2014 were

US$138.3 million compared with US$101.8 million for Q3 2013 and US$83.8 million for Q2 2014.

Q2 2014 – Q3 2014 Operating cash flow bridge, US$ m

83.8 138.3 5.4 17.9 35.3 (4.2)

• 10

10 30 50 70 90 110 130 150

Q2 OCF EBITDA Non-cash & non-

• perating

adjustments NWC change Interest & tax paid change Q3 OCF

146.7 138.3 17.4 (2.1) (23.7) 50 100 150

EBITDA Non-cash & non-

• perating

adjustments NWC change Interest & tax paid change OCF

306.9 366.0 138.3 (53.7) (25.6) 50 100 150 200 250 300 350 400 450 500

June13 Cash & CE Operating CF Investing CF Financing CF incl.FX effect on cash & CE September13 Cash & CE

• EBITDA for Q3 2014 increased by 53% YoY and by

4% QoQ to US$146.7 million.

• In 9m 2014, EBITDA increased by 33% YoY to

US$391.5 million with continued strong production performance and efficiencies offsetting the lower gold price.

• EBITDA margin for 9m 2014 was 40.7% compared

with 31.1% in 9m 2013. Q2 2014 – Q3 2014 EBITDA bridge, US$ m 9m 2013 – 9m 2014 EBITDA bridge, US$ m Highlights:

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EBITDA Dynamics

293.3 50.6 130.6 391.5 (101.7) (6.8) (3.2)

50 100 150 200 250 300 350 400 EBITDA 9m 2013 Volumes Volume Mix Sales: prices COS: prices G&A Other EBITDA 9m 2014

28.7 141.3 2.9 2.0 4.4 146.7 (2.8)

20 40 60 80 100 120 140 160 EBITDA Q2 2014 Volumes Volume Mix Sales: prices COS: prices G&A Other EBITDA Q3 2014

3.5 (4.6)

24% 26% 34% 25% 25% 23% 28% 35% 27% 27% 18% 7% 19% 22% 21% 11% 15% 15% 13% 13% 9% 9% 11% 10% 11% 7% 16% 3%

• 5%
• 5%

8%

• 2%
• 18%

8% 8%

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

Fuel and energy Personnel costs Materials Spare parts Mining tax Other expenses Change in inventories

US$205m US$151m US$184m US$180m

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Costs Dynamics

• In Q3 2014, Nordgold’s consolidated TCC was

US$669/oz, a 21% decrease compared with Q3 2013 (US$843/oz). The cost reduction was largely driven by improved operational and consumption efficiency.

• TCC decreased by 4% compared with Q2 2014

(US$699/oz).

• In Q3 2014, eight of Nordgold’s mines achieved

TCC improvement compared with Q3 2013. The most significant cost reductions were recorded at Lefa (down 44%), Berezitovy (down 30%), Neryungri (down 27%) and Buryatzoloto (down 8%). Highlights: Quarterly cash cost breakdown*, US$ m 9m 2013 – 9m 2014 Cash cost bridge, US$/oz

885 694 (112) (44) (41) (4)

200 400 600 800 1,000

TCC 9m 2013 Volume Mix PCC Consumption Macro (inflation, Mining tax, Forex) Other TCC 9m 2014

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US$198m * - Restated in 2013, see Note 2 in Financial Statements

Nordgold Investor Relations

Valentina Bogomolova Head of IR Luna ArenA, Herikerbergweg 238 1101 CM Amsterdam Zuidoost The Netherlands M +7 916 474 59 96 E valentina.bogomolova@nordgold.com W www.nordgold.com

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