Nord Gold : Q3 and 9m 2016 Financial Results

Nord Gold SE reports financial and operating results for the third quarter and nine months ended 30 September 2016

London, United Kingdom, 14 November 2016

Nord Gold SE ('Nordgold' or the 'Company', LSE: NORD), the internationally diversified gold producer, announces an 11% increase in EBITDAto US$131.8 million in Q3 2016 compared with Q2 2016.

Highlights:

• EBITDA up 11% quarter-on-quarter ('QoQ') and 40% year-on-year ('YoY') to US$131.8 million in Q3 2016. EBITDA was US$370.0 million in 9m 2016.

• Net profit up 4% QoQ and 19% YoY to US$55.0 million in Q3 2016. Net profit was US$149.2 million in 9m 2016.

• Operating cash flow up 36% QoQ and 40% YoY to US$109.0 million in Q3 2016.

• Total debt down to US$871.3 million and net debt down to US$559.7 million.

• All-in sustaining costs ('AISC') of US$955/oz in Q3 2016 and US$904/oz in 9m 2016.

• 2016 production guidance reduced slightly to 840-880 thousand gold equivalent ounces ('koz') from 880-930 koz due to discontinuation of production at Aprelkovo, and limited access in Q4 2016 to flooded higher grade ore blocks in Africa after an unusually long wet season.

• 2016 full year AISC guidance increased to US$900/oz - US$950/oz from US$800/oz - US$850/oz due to decreased production guidance for 2016 and temporary higher capitalised stripping activities at West African and Berezitovy mines in Russia in order to facilitate pits cutbacks for ore supply in 2017.

• In October 2016, Nordgold sold its 50% stake in silver exploration project Prognoz in Russia for US$30 million in cash and royalty rights over future production revenue for a total amount of up to US$40 million. The US$30 million proceeds from the deal will be included in Nordgold's Q4 Financial Results.

Highlights	Q3 2016	Q3 2015	Change, YoY	Q2 2016	Change, QoQ	9m 2016	9m 2015	Change, YoY
Gold production, koz	211.1	200.7	5%	213.1	(1%)	633.7	708.2	(11%)
Average realised gold price per ounce sold, US$/oz	1,335	1,120	19%	1,265	6%	1,263	1,182	7%
Revenue, US$m	278.0	225.0	24%	269.9	3%	798.4	865.3	(8%)
EBITDA, US$m	131.8	94.2	40%	118.8	11%	370.0	426.2	(13%)
Net profit, US$m	55.0	46.3	19%	53.1	4%	149.2	181.0	(18%)
AISC, US$/oz	955	853	12%	930	3%	904	759	19%
LTIFR	1.47	0.44	234%	1.21	21%	1.41	1.71	(18%)

Message from the CEO

'We have delivered a robust financial performance in the quarter with EBITDA up sharply both on the same quarter last year and on the previous quarter this year, boosted by a higher gold price, but also a more resilient quarter's production. This more positive gold price environment, combined with the considerable progress we have made on our development pipeline including the launch of our new Bouly mine in Burkina Faso, gives us confidence in a strong performance in 2017. We have guided the market towards higher AISC for the full year as we invest more in particular at our West African mines in order to access higher grade ores - we believe this investment will pay dividends in 2017 and expect AISC to reduce during the course of next year, as we continue to implement further cost saving measures. We remain a consistent Free Cash Flow generator committed to maintaining a low cost base and reiterate our full year capex guidance, despite the on-going investment into our portfolio of de-risked, low capital intensive development opportunities.'

Nikolai Zelenski, Chief Executive Officer, Nordgold

Operating Highlights

• Refined gold production in Q3 2016 was 211.1 koz, a 5% increase YoY and 1% decrease QoQ. Production in 9m 2016 was 633.7 koz.

• Production at Bouly started in Q3 on schedule, with 2.6 koz produced during the quarter. Bouly is expected to produce up to 20 koz of gold in 2016 and an average of 120 koz per year for its 10-year life span.

• Gold production increased QoQ at Bissa, Taparko, Neryungri and Suzdal mines.

• Nordgold expects higher output in Q4 2016 driven by: higher production at Bissa, Berezitovy and Lefa mines; the positive impact of the new HiTeCC technology at Suzdal; and ramp up of the new Bouly mine.

Financial Highlights

• Average realised gold price in Q3 2016 increased by 6% QoQ and 19% YoY to US$1,335 per oz. In 9m 2016, the average realised gold price increased by 7% to US$1,263 per oz.

• Revenue in Q3 2016 increased by 3% QoQ and by 24% YoY to US$278.0 million. Revenue in 9m 2016 was US$798.4 million.

• EBITDA increased by 11% QoQ and by 40% YoY to US$131.8 million in Q3 2016 mainly due to the higher gold price. In 9m 2016, EBITDA decreased by 13% YoY to US$370.0 million due to lower sales volumes and higher costs partially offset by higher gold price.

• Net profit increased by 4% QoQ and by 19% YoY to US$55.0 million in Q3 2016. Net profit was US$149.2 million in 9m 2016, down 18% YoY.

• Normalised net profit attributable to shareholders in Q3 2016 was US$52.4 million. In 9m 2016, normalised net profit attributable to shareholders decreased to US$159.9 million from US$175.4 million in 9m 2015.

• In October 2016, Nordgold sold its 50% stake in silver exploration project Prognoz in Russia for US$30 million in cash and royalty rights over future production revenue for a total amount of up to US$40 million. The US$30 million proceeds from the deal will be included in Nordgold's Q4 Financial Results.

Costs

• In Q3 2016, Total Cash Costs ('TCC') decreased by 2% or by US$14/oz QoQ to US$668/oz mainly due to overall higher processing volumes and recovery, as well as increased head grade at the Taparko and Bissa mines. Cost reduction QoQ was also supported by continued Business System of Nordgold (BSN) programmes that resulted in lower spare parts, fuel and energy consumption and third party services costs and general and administrative expenses ('G&A') per ounce during the reporting quarter. TCC increased by 6% or by US$40/oz YoY in Q3 2016.

• In 9m 2016, TCC was US$644/oz, an 11% or US$66/oz increase over 9m 2015. We continue to implement cost optimisation and operational improvement programmes at all our mines. We expect lower costs in Q4 2016 based on a stronger Q4 2016 operational performance.

• In 9m 2016, AISC increased by 19% or US$145/oz YoY to US$904/oz mainly due to higher TCC and increased capitalised stripping activities at our West African and Berezitovy mines performed in order to facilitate pits cutbacks for ore supply in 2017. This was partially offset by significant AISC reduction recorded at Suzdal (down 36%), Neryungri (down 9%) and Taparko (7%).

• AISC increased by 3% or US$25/oz QoQ and by 12% or US$102/oz YoY to US$955/oz in Q3 2016. The QoQ AISC increase was mainly related to higher maintenance capex and capitalised stripping in Q3 2016.

Cash generation

• In Q3 2016, cash flow from operating activities (after interest and income tax paid) increased by 36% QoQ and by 40% YoY to US$109.0 million. In 9m 2016, cash flow from operating activities was US$269.6 million, compared with US$330.1 million in 9m 2015.

• 9m 2016 capital expenditure ('capex') increased by 40% YoY to US$251.3 million as planned. Capex in Q3 2016 increased by 11% QoQ to US$91.4 million.

• In Q3 2016, Nordgold generated free cash flow of US$16.8 million while investing in the construction of the new Gross mine in Russia. In 9m 2016, free cash flow was US$34.7 million.

• Cash and cash equivalents as at 30 September 2016 were US$311.6 million with net debt of US$559.7 million, compared with US$342.8 million cash and cash equivalents and net debt of US$562.5 million as at 30 June 2016.

Outlook

• 2016 production guidance has been reduced slightly to 840-880 koz from 880-930 koz due to the discontinuation of production at Aprelkovo, and limited access in Q4 2016 to flooded higher grade ore blocks in Africa after an unusually long wet season.

• 2016 full year AISC guidance increased to US$900/oz - US$950/oz from US$800/oz - US$850/oz due to decreased production guidance for 2016 and temporary higher capitalised stripping activities at West African and Berezitovy mines in Russia in order to facilitate pits cutbacks for ore supply in 2017.

• Nordgold reiterates FY 2016 capex of approximately US$370 million, including investments in the construction of two mines, exploration, development and maintenance, as well as capitalised stripping.

1. For detailed definition, please see 'Non-IFRS Financial Measures'.

2. Normalised Net Profit attributable to shareholders adjusted for the non-current assets and inventories impairment or utilisation of impairment.

3. For detailed definition, please see 'Non-IFRS Financial Measures'.

For the full report, please follow the link:

http://www.rns-pdf.londonstockexchange.com/rns/0650P_-2016-11-14.pdf

Telephone Conference and Q&A Session

Nikolai Zelenski, Chief Executive Officer of Nordgold, Dmitry Guzeev, Chief Financial Officer and Louw Smith, Chief Operating Officer will present the Company's financial results for Q3 and 9m 2016 on a conference call to be held on 14 November 2016 at 2.00 pm GMT (5.00 pmMoscow time). The presentation will be followed by a Q&A session. To participate in the telephone conference, please register in advance.

Registration Details

Conference Title: Nordgold's Presentation of Q3 and 9m 2016 Financial Results

To participate in the telephone conference, please dial:

Great Britain

[phone]

0808 238 1775

USA
[phone]

Russia
[phone]

Webcast

The presentation will be broadcast live over the Internet and will also be available as a recording after the conference.

To participate in the webcast please follow the link:

http://event.onlineseminarsolutions.com/r.htm?e=1276967&s=1&k=405AFEA967061228DE2B02575DD4621E

Materials

The Company's financial and operating results for the third quarter and nine months ended 30 September 2016 and associated presentation materials will be available on the Company's official website:www.nordgold.comon 14 November 2016.

Enquiries

For further information on Nordgold please visit the Company's website -www.nordgold.com

Notes to Editors

About Nordgold

Nordgold (LSE: NORD) is an internationally diversified gold producer established in 2007 and publicly traded on the London Stock Exchange. Nordgold has a proven track record of operational excellence and benefits from a significant international development pipeline. The Company is relentlessly focused on shareholder value, committed to running safe, efficient, profitable operations, which enable it to generate strong cashflows and in turn, continue to invest in its pipeline of new growth opportunities while generating returns for investors. In 2015, Nordgold produced 950 koz of gold with all-in sustaining costs of US$793 per ounce.

Nordgold operates 9 mines (5 in Russia, 2 in Burkina Faso and one each in Guinea and Kazakhstan). It has one project in construction phase (Gross in Russia), several prospective projects in feasibility study, preliminary economic assessment and advanced exploration phase and a diverse portfolio of early-stage exploration projects and licences in Burkina Faso, Russia, French Guiana and Canada. Nordgold employs over 8,000 people.

Cautionary Note Regarding Forward-Looking Statements

The accompanying document has been prepared by Nord Gold SE, a company existing under the laws of the United Kingdom (the 'Company' or 'Nordgold' and, together with its subsidiaries, the 'Group'), and is for informational purposes only. While information in this document is obtained from sources believed by the Company to be reliable, the Company has not undertaken an independent verification of such information, and no assurance can be provided as to the accuracy or completeness of any such information.

Certain statements in this document are not historical facts and constitute 'forward-looking' statements regarding future events or the future financial performance of the Group, including within the meaning of Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the United States Securities Exchange Act of 1934, as amended. Such forward looking statements may be identified 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 Group's results of operations, 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. Forward-looking statements are not guarantees of future performance, and the Groups' actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Group operates 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. Any such statements speak as of the date on which they are made, and the Company does not undertake any obligation to update any such statements to reflect information, events, results or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events, except as may be required by applicable law. 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. Many of these assumptions are based on factors and events that are not within the control of Nordgold and there is no assurance that they will prove correct. New risks and uncertainties emerge from time to time, and it is not possible for management to predict all of such risk factors and to assess in advance the impact of each such factor on Nordgold's business or the extent to which any factor, or combination of factors, may cause actual realities to differ materially from those contained in any forward-looking information. Actual performance or achievement could differ materially from that expressed in, or implied by, any forward-looking information in this document and, accordingly, investors should not place undue reliance on any such forward-looking information.

The information in these materials is provided as at the date hereof, and 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, and no reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. None of the Company or 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 these materials or otherwise arising in connection therewith.