Bloomberg News

Nordgold Falls to Record Low as Profit Drops 30% on Output

May 18, 2012

Nordgold NV, a London-listed Russian gold producer, fell to the lowest level since its listing after reporting a 30 percent decline in first-quarter profit from a year earlier as output dropped.

Global depositary receipts of Nordgold, controlled by Russian billionaire Alexey Mordashov, lost 5.7 percent to $5 by the close in London, the lowest price on a closing basis since the shares were listed on Jan. 20.

Net income declined to $60 million from $85 million in the first quarter of 2011, Nordgold said today in a statement. The company restated a production decline to 156,200 ounces, or 10 percent. Earnings before interest, taxes, depreciation and amortization fell 15 percent to $114 million, while revenue rose 8 percent to $264 million, the company said.

“We do not expect Nordgold’s share price to outperform the sector this year as we see it reporting only moderate production/financial growth in 2012,” VTB Capital analyst led by Nikolay Sosnovskiy, said in an e-mailed note.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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