In January-March, Nordgold invested 2.8 mln. US dollars to "Buryatzoloto"

20 May 2016

In January-March 2016, the volume of capital investments of JSC "Buryatzoloto" (included in Nordgold) was $ 2.8 million according to the Company's message. In particular, investments in exploration and evaluation of deposits amounted to 1.2 million, investments in the maintenance of production capacities is 1.6 million dollars. According to the Ministry of Natural Resources of the Republic of Buryatia, in the first quarter, "Buryatzoloto" accelerated mechanized tunneling of exit ramp at Kholbinsk mine for access to deeper horizons, constructed the drainage infrastructure as well as acquired an underground drill rig to accelerate drilling. The company also prepared the first three-dimensional geological model to optimize the exploration planning, evaluation of ore reserves and mining operations planning. In January-March, "Buryatzoloto" performed excavation works at the mine Irokinda for the preparation of Medvezhya delf portal, construction of exit ramp and ore mining from subsurface of delf No.3 and Serebrykovskaya delf. In 2016, the company will continue to study delfs No.2 and No.3, Khrebtovay, Serebryakovskaya and Petrovsksys, to increase the volume of mineral resources. In the first quarter, the company began to plan field works in Zhanokskaya area adjacent to Irokinda mine. In the first quarter, EBITDA amounted to 17.9 million dollars. The Company has received proceeds of $ 32.5 million by selling 27.7 thousand ounces at an average price of 1174 dollars per ounce. As reported, "Buryatzoloto" in January-March 2016 received a net profit of RUB 146.979 million which is 4.4 times less than in the same period last year according to Russian Accounting Standards. The company's revenue decreased by 19% to 2.354 billion rubles and the cost of sales - in 1.6 times to 1.283 billion.

Sourсe: Gold Mining Manufacturers' Reporter