StockMarketWire.com - Norgold shows that revenues for H1 2012 of US$528.5 million, were down US$14.9 million from H1 2011.
The reduction in revenues was mainly due to lower gold sales (down 14%), which was partially offset by higher realised gold prices (up 13%).
Total cash costs of US$832 per ounce, were up from US$672 per ounce in H1 2011. The increase was mainly due to higher costs at the Lefa, Taparko, and Suzdal mines due to lower head grades and recoveries.
EBITDA of US$217.7 million, down US$50.6 million from H1 2011. EBITDA was impacted by both lower production volumes at Lefa, Taparko, Berezitovy and Neryungri, and by increased production costs at Lefa, Taparko, and Suzdal. EBITDA margin for H1 2012 was 41%. Cash flow from operating activities after interest and income taxes for the period was US$2.4 million. This included a one-off payment of the accumulated interest on debt financing from the OJSC Severstal loan, amounting to US$42.0 million. Excluding this one-off payment, operating cash flow for H1 2012 was US$44.4 million.
The Company's cash and cash equivalents at June 30, 2012 were US$50.5 million, compared to US$217.1 million at 31
December 2011, giving net debt of $380.4 million. The decrease in cash is largely due to the US$97.5 million payment for construction at Bissa. The work at Bissa is now in the most active phase of its development, and is on time and on budget.
· Capex programme for 2012 is on budget and on schedule with US$224.3 million (including US$65.2 million for exploration) spent during the first six months of the year.