A higher realized gold price drove a 7% year-over-year increase in Nord Gold SE's net profit in the first quarter to US$42.4 million, the Russia-focused miner said in its May 23 earnings report.
The average realized gold price for the period was US$1,333/oz, up 8% from US$1,229/oz in the first quarter of 2017, which compensated for a 6% drop in both sales and production to 225,100 ounces.
Revenue amounted to US$300 million, up from US$293.1 million the year before, while EBITDA fell to US$126 million from US$131 million. The company attributed the drop in EBITDA to higher costs in the first quarter.
Nord Gold's board approved an interim dividend of 3.31 U.S. cents per share for the three-month period, for a total payout of US$11.2 million.
Net debt stood at US$691.5 million at the end of the quarter, increasing 2% year over year.
CEO Nikolai Zelenski said a "softer quarter" had been expected as the company is mining lower-grade ore and continues to invest in the construction of the Gross project in Russia's Far East.
The company spent US$58.9 million on Gross during the quarter, with total CapEx increasing to US$121.3 million from US$61.9 million in the first three months of 2017. CapEx for the full year is pegged at US$390 million.
Zelenski said the project is expected to make a meaningful contribution to production in the second half.
The company anticipates 2018 gold production of 950,000 to 1 million ounces, with all-in sustaining costs of US$900/oz to US$950/oz.
