Severstal subsidiary Nord Gold with sales increase
25.04.2012/2011/XNUMX Amsterdam - The Netherlands-based subsidiary of the Russian steel manufacturer Severstal Nord Gold was able to double its net profit for the XNUMX financial year. And the first quarter of this year was also satisfactory for the gold producer, despite some problems, as the company was able to increase its sales in the period mentioned.
After all, the company's revenue in the first quarter 2012 increased by eight percent compared to the same period last year (244 million dollars) to now 264 million dollars. However, the group had to accept a production decline of eleven percent in the March quarter. Thus, Nord Gold promoted a total of 155.700 troy ounces of gold, in the first trimester of 2011, the issue was still 174.200 troy ounces. Although the gold sales of the company were declining at 10 percent compared to the same period last year and reached only 156.200 troy ounces (2011 173.900 troy ounces of gold). However, the company benefited from higher gold prices in the first quarter of this year, as it rose by about 20 percent to an average of 1.689 dollars per troy ounce.
Production increase announced
And the company also recently announced a gold production increase for the current fiscal year: to increase output in 2012 to 800.000 to 850.000 troy ounces of gold equivalent. Although this seems quite ambitious, considering that in the first quarter of the year noticeably less than 25 percent of the planned annual output was produced. However, quarter-on-quarter decline resulted in problems in deposits in Burkina Faso, Guinea and two mines in Russia, which have since been rectified. , In that sense, the goal of raising gold's output to that amount this year is quite realistic.
Now that the funding shortfalls have been eliminated, the company wants to increase gold output not only this year but also in 2013. The company intends to produce a total of one million troy ounces of gold equivalent next year. If the gold price does not subside significantly, the company should continue to come up with decent business results.
(Www.emfis.com)
