GREY:HRIVF - Post by User
Post by
ccharlwoodon May 17, 2011 11:17am
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Post# 18587556
Gold segment Severstal Q1
Gold segment Severstal Q1From Severstal Q1 report
GOLD
Nordgold, the gold segment within Severstal, continued to demonstrate growth and strong results. The gold price reached new record level in Q1 2011. Revenue increased by 80.7% to $244 million (Q1 2010: $135 million).
Nordgold produced 174.2 koz in Q1 2011, a y-o-y increase of 59.5% driven by de-bottlenecking initiatives at Berezitovy and Taparko. There was also a contribution from the consolidation of Crew Gold. Gold output fell by 10% q-o-q due to bad weather factors.
Total cash costs per ounce of gold in Q1 2011 were $603/oz and are expected to remain in the range of $600-$650/oz for the full year 2011.
Q1 2011 EBITDA increased by 101.5% to $135.1 million (Q1 2010: $67.0 million). EBITDA margin reached 55.3%.
Capex in Q1 2011 increased to $38.9 million (Q1 2010: $22.3 million), including $17.4 million spent on exploration.
In January 2011, the Group acquired an additional 6.6% stake in Crew Gold Corporation for a total consideration of US$ 32.9 million, increasing its ownership interest up to 100%.
Nordgold continues to advance organic growth at existing operations while making good progress in exploration, including the two major development projects: Bissa in Burkina Faso and Gross in Russia.