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At the end of last year the net profit of Nordgold decreased

20 April 2019
At the end of last year the net profit of Nordgold decreased

Gold mining company Nordgold told about its financial figures for 2018. So the net profit according to IFRS for last year has decreased. It amounted to 91.9 million dollars. Compared with the previous year’s result, which is 45% less. Experts observed several reasons for this decline. First of all, the result was affected by the depreciation of non-current assets. Also significantly increased the financial expenses of the company. They were only partially offset by the positive difference in rates.

Additionally, decreased EBITDA. Compared to the 2017 year it decreased by 10%. Thus, it was 470,2 million dollars. The reason is that the volume of production decreased. In addition, increased costs for temporary reduction of gold content in the ore. We are talking about the ore, which is mining and processing enterprise. Revenue amounted to 1.143 billion. This was 6% less than it was a year earlier. The volume of investment increased by 47%. It was affected by the increased investment in the construction of a new mine. We are talking about the mine «gross». In addition, the increased volume of capitalised Stripping.

For the fourth quarter net loss amounted to 17.3 million dollars. In the third quarter, was fixed income. Year-end net debt achieved 917,2 million dollars. Only in the fourth quarter gained 7%. The amount of cash and cash equivalents totaled 90.3 million. This is 35% less than in the previous quarter. Again, this was influenced by the financing of the construction of the mine «gross». Also approved the payment of interim dividends. Per share had of 1.28 cents. The total amount was $ 4.3 million.

18 April 2019
24 April 2019