Nord Gold SE saw a year-over-year drop in both refined gold production and gold dore output in 2016.
Refined gold production dropped 9% to 868,800 gold equivalent ounces but was within the year's guidance of 840,000 ounces to 880,000 ounces, while gold dore was down 6% to 870,400 ounces, on a yearly basis.
Gold dore output was down mainly due to the discontinuation of production at Aprelkovo, and limited access in the second half of 2016 due to flooded higher grade ore blocks in the West African open-pit mines after an unusually long wet season.
The company posted a 4% dip in revenue to US$1.08 billion in the year mainly due to lower sales volumes, which were partially offset by a 7% increase in the average realized gold price to US$1,246 per ounce sold.
All-in sustaining costs for the year are expected to be within the guidance of US$900 per ounce to US$950 per ounce, Nord Gold said Jan. 26.
In 2017, production is expected to be in the range of 900,000 ounces to 950,000 ounces, with all-in sustaining costs remaining at the same level of between US$900 per ounce to US$950 per ounce.
The company's new Bouly mine in Burkina Faso is expected to produce up to 110,000 gold equivalent ounces in 2017.
In the fourth quarter of 2016, Nord Gold's refined gold output declined 3% to 235,100 ounces, while gold dore production improved 6% to 242,700 ounces, compared to the fourth quarter of 2015.
The company achieved a 7% increase in revenue to US$281.5 million, on the back of a 9% increase in the average realized gold price to US$1,198 per ounce sold.
The under-construction Gross mine in Russia, which is expected to start operations in the first half of 2018, will produce about 230,000 ounces of gold per year at full production, for 17 years, the company noted.