Interview with the CEO of Nordgold, N. Zelensky

He spoke about the coming capital expenditure, possible hedging, as well as business diversification into other metals and amalgamation with the underestimated company to increase the free-float of Nordgold.

Q: The company forecasts its production in 2014 closer to the upper limit at 900-950 thousand ounces. Is it possible to overcome this rate?

A: On the results of 9 months we produced 747 thousand ounces and are now significantly ahead of last year’s strong results. Everything is good and Q3 is a confirmation of the two previous quarters. We will aim at good results in Q4 as well. However, we keep a traditionally conservative approach to forecasting.

Q: When do you plan to reach the level of 1 mln ounces a year?

A: One mln ounces is just a good figure. In general, we are very close to it: last year we produced 924 thousand ounces, 8% less than 1 mln ounces. This year we will be even closer – a few percent less.

To reach 1 mln ounces, we need to launch another mine. We have 2 projects at the most advanced stages – Gross in Yakutia and Bouly in Burkina-Faso. The former is with the planned production volume of 220 thousand ounces, the latter – 145 thousand ounces. So if one of them is added to the last year’s production, we easily overcome a million rate.