Nordgold Targets to Boost Gold Output by 20%

SEATTLE (Scrap Monster): Russian miner Nord Gold plc (Norgold) announced that its gold production has registered a healthy CAGR growth of around 15% between 2008 and 2020. The production has almost touched 1 million ounces (Moz) in 2020. This compares with the production of nearly 193,000 ounces in 2008. The company seeks to boost its output by 20% over the next five years.

The company cited several factors in support of an increased demand and price for gold in future. These include rising uncertainties in global financial markets, inflationary pressures on account of low interest rate environment and possibilities of potential depreciation of U.S. dollar.

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Norgold foresees possibilities of increasing the annual production by the Gross region to nearly 640,000 ounces at an all-in sustaining cost (AISC) of approximately $715 per Oz, upon completion of the mine capacity expansion and construction of Tokko mine. The expansion works are expected to significantly add to the ore-processing capacity.

The company announced that it will pay a minimum dividend of $400 million for 2021. This will be paid in two equal instalments following release of the interim and full-year financial results. Meantime, the company announced its decision to hold an initial public offering (IPO) in London.