Nord Gold N.V NORD Financial & Operating Results Q3 2012

  Nord Gold N.V (NORD) - Financial & Operating Results Q3 2012

RNS Number : 3016R
Nord Gold N.V.
16 November 2012




Nord Gold N.V. reports financial and  operating results for the third  quarter 
and nine months ended September 30, 2012

Amsterdam, Netherlands, November 16, 2012

Nord Gold  N.V, ("Nordgold"  or  the "Company",  LSE: NORD),  an  independent, 
internationally diversified, pure-play gold producer strategically focused  on 
emerging markets, announces its financial and operating results for the  third 
quarter and ninemonths ended September 30, 2012.

Highlights for the quarter

  Revenues                                   EBITDA

US$322.5 million                            US$131.5 million

Up 27% (US$69.1 million) from Q3 2011; up   Up 18% (US$20.2  million) from  Q3 
22%  (US$57.9  million)  compared  to  Q2   2011;  up  27%  (US$28.0  million) 
2012. YoY growth  in revenues was  mainly   compared to  Q2 2012.  YoY  EBITDA 
due to higher  volume of  gold sales  (up   was positively impacted by  higher 
29%),  which  was  marginally  offset  by   production   volumes   at    Lefa, 
lower realised gold prices (down 2%).       Suzdal, Berezitovy and  Aprelkovo. 
                                            EBITDA  margin  for  Q3  2012  was 
                                            41%.
  Gold production                            Cash flow from operating
                                              activities after
194.0 thousand gold ounces                    interest and income tax paid

Q3 2012 gold production of 194.0 thousand   US$68.6 million
gold equivalent  ounces  ("Koz"),  a  17% 
increase on Q2  2012 (165.3  Koz) and  9%   Up  76%  from  Q3  2011;  up  218% 
ahead of Q3 2011 (178.4 Koz).  Production   compared to US$21.6 million in  Q2 
growth  was  mainly   driven  by   robust   2012. YoY improvement in cash flow
production volumes at Lefa during the wet   from operating activities was  due 
season and  increased recovery  rates  at   to higher  production volumes  and 
Suzdal.                                    reduced  cash  costs  at   certain 
                                            mines.

· The Company's cash and cash equivalents at September 30, 2012 were US$102.4
million with net debt at $420.8 million, compared to US$50.5 million cash  and 
cash equivalents  at 30  June 2012,  giving net  debt of  $380.4 million.  The 
increase in net  debt is largely  due to cash  used for investing  activities, 
mainly the US$148.7  million payment for  construction at Bissa.  The work  at 
Bissa is now  in its most  active phase. The  project remains on  time and  on 
budget.

· In comparison  to the  previous quarter Q3  2012 total  cash costs  ("TCC") 
decreased by 3% from US$863 to US$837  per ounce. The decrease is a result  of 
the volume effect  for fixed  costs and  SG&A together  with higher  recovery, 
lower repair and maintenance expenses, discontinuation of use of hired  mining 
equipment at Lefa mine and a positive forex effect during the period.

· Net income for Q3 2012 increased by 32% to US$58.0 million compared to the
same period last year, on the back of increased production and EBITDA and
favourable exchange rate movements.

Operating Highlights

· Lost time injury frequency  rates (LTIFR) for Q3 2012  fell by 21% to  1.96 
from 2.48 in Q3  2011. Safety continues  to be the  absolute priority for  the 
Board and management  with the objective  of Zero Harm  for our employers  and 
contractors.

· Q3 gold production of 194.0 thousand gold equivalent ounces ("Koz"), a  17% 
increase on Q2 2012 (165.3 Koz) and 9% ahead of Q3 2011 (178.4 Koz).

· Gold  production in  Q3  2012 increased  at  Lefa, Suzdal,  Berezitovy  and 
Aprelkovo from Q3  2011, while  production fell at  Taparko, Buryatzoloto  and 
Neryungri in the same period.

· Suzdal has delivered a particularly  strong performance due to a return  of 
gold recoveries to a  historic high of  69% in Q3  2012, while Berezitovy  has 
continued to perform at record levels. Taparko has achieved an improvement  in 
gold recoveries after the launch of a regrind mill in early Q3 2012.  However, 
at 83% recoveries are still below target levels, and operating settings at the
plant are being further optimized. At Buryatzoloto production decreased by 26%
relative to Q3 2011 due to a reduction in head grade.

· Nordgold continues  to make  progress resolving  operational issues  across 
most of its mines. However we anticipate robust production and have identified
clearly visible upside potential  for the rest  of 2012 and  in 2013 at  Lefa, 
Suzdal, Berezitovy  and both  Russian heap  leach operations  - Neryungri  and 
Aprelkovo. Head  grades at  Burytzoloto and  recoveries at  Taparko remain  an 
uncertainty.

Message from the CEO

"This has been a strong quarter for Nordgold, positioning us well for the rest
of the year and  more importantly a positive  2013. We have made  considerable 
progress in dealing with the operational challenges we faced in the early part
of the  year, while  our  continued focus  on  production, costs  and  working 
capital has  enabled us  to achieve  improvements in  revenue, operating  cash 
flows and net income both quarter on quarter and year on year.

We were pleased to launch our offer to the minority shareholders in High River
Gold Mines Ltd. in October. This is a significant development for the  company 
which will enable  Nordgold to increase  the free float  and liquidity in  the 
shares of  the  Company  in  London.  This  will  benefit  all  investors,  in 
particular those  High River  Gold Mines  Ltd. investors  for whom  the  offer 
represents a  great opportunity  to participate  in the  long term  growth  of 
Nordgold.

Nordgold remains  a  compelling  growth story.  Our  strong  emerging  markets 
presence and expansion projects at Gross  and Bissa, which are set to  achieve 
first gold in 2013, combined with our exciting exploration portfolio, means we
are well positioned to deliver long term shareholder growth."

  Nikolay Zelenski, Chief Executive Officer, Nordgold

Refined gold production by mines ^(1)

                                                                    9M Change,
             Q3 2012  Q3 2011 Change, Q2 2012            9M 2012  2011
               (Koz)    (Koz)     YoY   (Koz) Change,QoQ   (Koz) (Koz)     YoY
Lefa            40.7     36.9     10%    43.6       (7%)   124.1 146.4   (15%)
Taparko         29.4     33.8   (13%)    29.3         0%    91.2 105.1   (13%)
Suzdal ^(2)     27.9     10.9    156%    18.7        49%    65.7  52.1     26%
Buryatzoloto    24.7     33.6   (26%)    30.2      (18%)    86.6  98.1   (12%)
Berezitovy      33.4     25.5     31%    25.5        31%    79.2  77.7      2%
Neryungri       23.9     26.2    (9%)    11.3       115%    43.9  50.1   (12%)
Aprelkovo       13.9     11.7     19%     6.6       111%    24.3  21.3     14%
Nordgold       194.0    178.4      9%   165.3        17%   515.0 550.7    (6%)

(1) Including 3.3 thousand gold equivalent ounces of silver production for
the 9M 2012 (Q3 2012: 1.2 Koz; Q2 2012: 1.0 Koz; 9M 2011: 5.4 Koz; Q3 2011:
1.6 Koz)

(2) Including refined gold from Zherek

Safety

We deeply regret the tragic  death of one of  our colleagues at the  Aprelkovo 
mine in October 2012.

Safety continues to  be the first  priority for the  Board and the  management 
team. We  remain determined  to achieve  our objective  of Zero  Harm for  all 
employees and our contractors at all  our mine sites. We recognise we  operate 
in a hazardous  environment, but our  focus on ensuring  our employees  return 
home safely at the end of each shift is absolute.

We already can see good progress in the safety area across our mines. Q3  2012 
LTIFR of 1.96, 21% lower than the corresponding period in 2011.

Business System of Nordgold

One of the key Nordgold management  priorities for 2012 is the  implementation 
of Business  System  of Nordgold  (BSN).  BSN  will establish  best  in  class 
sustainable processes at the Company's  operating assets ensuring they are  as 
efficient, low  cost, sustainable  and above  all,  safe as  they can  be.  We 
continue to commit significant resources into this program.

The first  stage  of  BSN  implementation  began  in  Q2  2012  and  is  being 
implemented at four of  Nordgold's sites -  Taparko, Irokinda, Berezitovy  and 
Suzdal. Many new  initiatives have  already been implemented  at these  mines, 
including hot seat  change at  Taparko, decision  trees for  CIL operators  at 
Suzdal, efficiency improvement of mechanized drill and blasting operations  at 
Irokinda (one of the Buryatzoloto mines).

The financial impact of BSN implementation  is a reduction in costs, with  the 
most  notable  effect  during  2012  expected  at  Lefa  where  reduction   in 
contractors, labour costs, fuel consumption and administrative expenses should
together bring overall costs down.

We are looking forward to completing  the implementation of the first wave  of 
BSN at these mines in Q4 2012.

BSN will continue its efficiency improvement programs into 2013. The target is
to  have  a  total  cash  cost  reduction;  a  significant  increase  in   the 
productivity of  our  equipment;  increased utilization  and  availability  of 
mining equipment  at  all  open  pits  and an  improvement  in  the  level  of 
operational management at the processing plants.

Exploration & Development

Nordgold continued to progress development work  at Bissa and Gross during  Q3 
2012. The Bissa project is  on track to deliver first  gold in H1 2013 and  we 
now believe that production  of gold at  Bissa can be  started in the  earlier 
part of the announced  period. Mining fleet is  available on site and  started 
pre-stripping of the pits, while part  of the fleet is assisting the  tailings 
storage facility construction. Ball and SAG mills are installed and mechanical
alignment is  complete.  CIL  tanks  are installed,  while  piping  and  other 
auxiliary mechanical equipment  installation and  most of  electrical work  is 
still to be finished.

The pre-feasibility  study for  Gross was  completed by  Snowden this  summer. 
Since then, new drilling data has been incorporated into the geological model,
helping to  enhance the  KPIs of  the project.  The economics  of the  project 
appear to be robust and stable. Gold production is expected to commence in  Q4 
2013.

Offer to High River Gold Minority Shareholders

On October 19, 2012  Nordgold announced its offer  to acquire the  outstanding 
shares of  High River  Gold Mines  Ltd  ("High River")  not already  owned  by 
Nordgold and its  affiliates. Nordgold currently  owns 630,627,472 High  River 
shares, constituting approximately 75 percent of High River.

The offer represents an attractive opportunity for High River shareholders  to 
retain exposure to High  River's asset base, whilst  also benefiting from  the 
stronger  growth  profile  associated   with  heritage  Nordgold  assets,   in 
particular the Lefa mine,  and the substantial mineral  reserves at the  Gross 
development.

Under the terms of  the proposed offer, eligible  High River shareholders  who 
tender their High  River Shares  to the Offer  (defined below)  will have  the 
right to elect to receive either:

(i) 0.285 (the "Exchange Ratio") Nordgold global depositary receipts ("GDRs")
for each High River share held by them (the "GDR Offer"); or

(ii) C$1.40  in  cash for  each  High River  share  held by  them  (the  "Cash 
Alternative", together with the GDR Offer the "Offer").

Completion of  this transaction  will mark  an important  streamlining of  our 
corporate structure  and  better  position  Nordgold as  one  of  the  leading 
emerging market gold producers. It also represents an outstanding  opportunity 
for High River shareholders to share in the long terms growth of Nordgold.

Dividends

We remain focused on  delivering a dividend to  our shareholders based on  the 
net profit  that  Nordgold delivers  on  an  annual basis.  According  to  our 
dividend policy, we intend to distribute approximately 25% of annual  earnings 
as dividends.

Outlook

Nordgold now anticipates 2012 full year production at the lower end of our
previously announced range of 720 to 770 koz.









Financial Results Summary

Financial
results,                        Change,           Change,                   Change,
US$000         Q3 2012  Q3 2011     YoY   Q2 2012     QoQ   9M 2012 9M 2011     YoY
Revenue        322,532  253,435     27%   264,664     22%   851,072 796,868      7%
EBITDA ^(3)    131,541  111,279     18%   103,504     27%   349,192 379,589    (8%)
EBITDA
margin, %
^(3)             40.8%    43.9% (3.1pp)     39.1%   1.7pp     41.0%   47.6% (6.6pp)
Net
income/(loss)   57,962   43,759     32%     5,558    943%   123,214 173,782   (29%)
Cash flows
from
operating
activity        68,592   38,999     76%    21,596    218%    70,971 213,320   (67%)
Capital
expenditures   118,448   91,113     30%   127,826    (7%)   342,779 197,889     73%
incl.
Exploration     31,273   36,068   (13%)    35,585   (12%)    96,273  76,562     26%
Free cash
flow ^(4)     (43,737) (43,931)      0% (111,740)   (61%) (270,145)  20,886 (1393%)
Cash and cash
equivalents    102,406  184,478   (44%)    50,524    103%   102,406 184,478   (44%)
Total debt     523,234  439,500     19%   430,939     21%   523,234 439,500     19%
Net debt ^(3)  420,828  255,022     65%   380,415     11%   420,828 225,022     94%
TCC ^(3)      161,275  121,446     33%   141,806     14%  426,411 368,962     16%
TCC, US$/oz
^(3)               837      687     22%       863    (3%)      833     677     23%

(3) EBITDA, EBITDA margin, net debt and TCC are not measures defined by
IFRS. See "Non-IFRS Financial Measures".

(4) Free cash flow is a non-IFRS measure, used by Nordgold as an indicator
of financial strength and performance. Free cash flow is defined as cash flow
from operating activities, as reported in accordance with IFRS, less
adjustments for cash flows used in investing activities, as reported in
accordance with IFRS.



Revenue increased  from US$796.9  million in  the first  9 months  of 2011  to 
US$851.1 million in the same period of 2012. This increase was the result of a
higher average sales price, which amounted to US$1,654 per ounce in the  first 
9 months of  2012. In the  same period of  2011, the average  sales price  was 
US$1,529 per  ounce.  Sales  volumes  in  the first  9  months  of  2012  were 
marginally lower compared to the same period in 2011 and amounted to 514.6 Koz
and 521.2 Koz respectively.

Revenue in Q3 2012 increased to  US$322.5 million from US$253.4 million in  Q3 
2011. This increase was  the result of  higher sales volumes  - 193.2 Koz  and 
149.4 Koz respectively. The average sales price  was lower in Q3 2012 than  in 
Q3 2011 and amounted to US$1,670 per ounce compared to US$1,697 per ounce.  In 
comparison with Q2 2012, revenue in Q3 2012 increased from US$264.7 million to
US$322.5 million. This increase was the result of higher sales volumes  (193.2 
Koz in Q3 2012 in  comparison to 165.2 Koz  in the previous quarter)  together 
with higher average sales prices (US$1,670  per ounce in Q3 2012 and  US$1,602 
per ounce in Q2 2012).

Cost of sales for the 9 months ended September 30, 2012 was US$562.1  million, 
US$102.6 million higher than cost of sales in the 9 months ended September 30,
2011, which was US$459.5 million. The  increase was a result of lower  average 
recovery levels together with inflation  and increased use of main  production 
consumables, such as materials and spares, fuel and energy, services and staff
costs.

Cost of sales in Q3 2012 was US$220.0 million, US$75.0 million higher than  Q3 
2011, which  was US$145.0  million.  The increase  was  mainly due  to  higher 
production levels together with inflation, and lower average recovery  levels. 
Compared to Q2 2012,  cost of sales  in Q3 2012  increased by US$42.9  million 
from US$177.1 million. The increase was mainly due to higher production levels
together with growth  in the consumption  rate of fuel  and energy at  certain 
mines, together with higher staff  costs due to an  increase in the number  of 
personnel. This increase was partly offset by lower consumption of  materials, 
spare parts and services but intensified by lower average grades of ore.

Total cash costs  for the first  9 months  of 2012 increased  from US$677  per 
ounce in the first 9 months of 2011 to US$833 per ounce. This increase was due
to lower recovery levels partly offset by the higher volumes of ore  processed 
which had a positive effect on reducing fixed costs. Negative factors included
inflation and  an  increased  use  of main  production  consumables,  such  as 
materials and spares, fuel and energy, services and staff costs.

TCC for Q3  2012 increased  from US$687  per ounce in  Q3 2011  to US$837  per 
ounce. This increase was  due to lower  recovery levels, inflation,  increased 
use of  consumables  and salary  indexation.  In comparison  to  the  previous 
quarter Q3 2012 TCC decreased from US$863 to US$837 per ounce. The decrease is
a result of the volume effect on  fixed costs and SG&A together with a  higher 
recovery in Q3 2012, lower repair and maintenance expenses, discontinuation of
use of hired mining equipment on Lefa mine and a positive forex effect.

General and administrative expenses increased by US$26.3 million from  US$21.7 
million in the 9  months ended September  30, 2011 to  US$48.0 million in  the 
same period  of  2012. The  increase  was primarily  due  to income  from  the 
reversal of a bad debt allowance in the first half of 2011, increases in staff
costs and payroll tax costs.

In comparison  to  Q3  2011,  general  and  administrative  expenses  remained 
generally the same in Q3 2012 with  a slight increase from US$15.5 million  in 
Q3 2011 to US$16.1 million  in Q3 2012 due to  higher staff costs and  payroll 
tax costs. General and administrative expenses in Q3 2012 remained broadly  at 
the same level in comparison to  the previous quarter and amounted to  US$16.1 
million compared to US$16.9 million in Q2 2012.

EBITDA decreased  from US$379.6  million in  the  first 9  months of  2011  to 
US$349.2 million in  the first  9 months  of 2012.  This decrease  was due  to 
higher  production  costs,   lower  sales  volume   and  higher  general   and 
administrative costs partly compensated by higher sales prices.

EBITDA for Q3 2012 amounted  to US$131.5 million and  was higher than both  Q3 
2011 (US$111.3 million) and Q2 2012  (US$103.5 million). The increase was  due 
to higher revenues partly offset by higher costs.

Taxes other than income taxes decreased by US$1.6 million from US$56.1 million
in the first  9 months of  2011 to US$54.5  million in the  first 9 months  of 
2012. The decrease relates to lower  production and sales levels as the  major 
constituent of this item relates to mining tax.

Taxes other than income taxes remained at the  same level in Q3 2012 as in  Q3 
2011 and amounted to US$20.8 million  in both periods and increased by  US$3.4 
million in comparison  to Q2  2012 from  US$17.3 million.  The deviations  are 
explained by the levels of production and sales in corresponding periods.

Other net  operating  income/(expenses)  increased  by  US$14.6  million  from 
expenses of US$8.5 million in the 9 months ended September 30, 2011 to  income 
of US$6.1 million in the 9 months  ended September 30, 2012. This increase  in 
net operating income resulted from  more significant amounts of impairment  of 
available for sale financial assets and  loss from inventory write-off in  the 
first 9  months of  2011  than in  the first  9  months of  2012, as  well  as 
increased income from the reversal of provisions and contingencies in 2012.

Mostly the  same factors  resulted  in the  increase  of other  net  operating 
income/(expenses) in  Q3 2012  in comparison  to Q3  2011 from  an expense  of 
US$0.9 million to income of US$4.7 million, except for the gain from inventory
write-off in  Q3  2011.  Other  net operating  income/(expenses)  in  Q3  2012 
remained broadly the same compared to  Q2 2011 and amounted to US$4.7  million 
and US$4.1 million respectively.

Finance income in the first 9 months of 2012 decreased by US$6.9 million  from 
US$10.1 million in the first 9 months of 2011 to US$3.1 million in the first 9
months of 2012.  The decrease was  due to  a foreign exchange  gain of  US$5.0 
million in the  first 9 months  of 2011 and  a loss of  US$7.2 million in  the 
first 9 months  of 2012.  This factor also  influenced the  change in  finance 
cost, but the main reason for  finance cost deviation was the US$15.7  million 
of equity transaction costs in the  first 9 months of 2011. Interest  expenses 
decreased from  US$24.6 million  in the  first  9 months  of 2011  to  US$22.0 
million in the first 9 months of 2012.

The foreign exchange result also led to  the increase in finance income in  Q3 
2012 compared to the previous quarter  and amounted to a US$10.5 million  gain 
in Q3 2012 and a US$35.0 million  loss in Q2 2012. Interest expense  increased 
in Q3 2012 from US$6.6 million in Q2 2012 to US$8.4 million in Q3 2012.

Nordgold's  primary  source  of  liquidity   is  cash  flows  from   operating 
activities. Nordgold's  cash  flows  from  operations  decreased  by  US$142.3 
million from US$213.3 million in the first 9 months of 2011 to US$71.0million
in the same  period in 2012.  The decrease  was principally due  to the  lower 
profit for  the  period,  more  significant changes  in  working  capital  and 
interest paid in nine months 2012. Cash flows from operating activities in  Q3 
2012 were higher  than both in  Q3 2011 and  Q2 2012 and  amounted to  US$68.6 
million, US$39.0 million and US$21.6 million respectively. The increase was  a 
result of higher cash flows from operations  and the lower amount of tax  paid 
in Q3 2012 in comparison to Q3 2011 and Q2 2012.

The principal uses of liquidity were investments in exploration and evaluation
activity,  acquisition  of   property,  plant  and   equipment  and   business 
combinations.

Cash flows used in  investing activities in the  9 month period were  US$341.1 
million, US$148.7 million higher than in  the same period of 2011. The  amount 
of cash flows  used in investing  activity increased due  to more  significant 
levels  of  exploration  activity  and  acquisition  of  property,  plant  and 
equipment. In Q3 2012  cash flows used in  investing activities were  US$112.3 
million, which was  US$29.4 million higher  than Q3 2011  and US$21.0  million 
lower than Q2 2012.

Cash flows  from financing  activities for  the first  9 months  of 2012  were 
US$148.4 million which  was US$186.6 million  higher than cash  flows uses  in 
financing activities in the first 9 months of 2011. The deviation is explained
by cash flows for acquisitions on  non-controlling interests used in the  nine 
months 2011 together with  net inflow from debt  finance received in the  nine 
months 2012. Cash  flows from  financing activities  in Q3  2012 were  US$91.0 
million; this was higher than both Q3  2011 and Q2 2012, which were  US$(51.5) 
million and US$3.5 million respectively. The reasons for the improvement  were 
the acquisition of  non-controlling interests  in Q3 2011  and additional  net 
inflow from debt finance in Q3 2012.

Principal Risks

The  Group  has  a  well-established  system  of  internal  control  and  risk 
management, designed to  safeguard our  assets and reputation.  The Board  has 
overall responsibility  for  our internal  controls  and for  reviewing  their 
effectiveness,  and  has   delegated  their  implementation   to  our   senior 
management.

The Group faces a number of risks that are typical of our industry, as well as
those relating to our operations and the  markets in which we operate. In  the 
2011 Annual Report, the Group has described certain risk categories that could
have a material adverse  effect on its operations  and financial position.  In 
the Group's view, the nature and potential impact of these risk categories  on 
the business are not materially  different for the first  half of 2012. It  is 
not anticipated that the nature of the principal risks and uncertainties  that 
affect the Group will change in the second half of the current financial year.





Operating Results Summary

Operating                      Change,         Change,                 Change,
results        Q3 2012 Q3 2011     YoY Q2 2012     QoQ 9M 2012 9M 2011     YoY
LTIFR             1.96    2.48   (21%)    1.03     90%    1.60    2.05   (22%)
Run of mine,
kt ^(5)         19,349  16,158     20%  18,487      5%  57,634  51,640     12%
Waste mined,
kt ^(5)         15,709  12,354     27%  14,437      9%  46,648  39,748     17%
Ore mined, kt    3,913   3,745      4%   4,331   (10%)  11,843  11,689      1%
Stripping
ratio, tn/tn
^(5)              4.01    3.30     22%    3.33     20%    3.94    3.40     16%
Ore milled, kt   4,656   4,588      1%   3,979     17%  11,238  12,071    (7%)
Grade, g/t        1.70    1.65      3%    1.83    (7%)    1.86    1.84      1%
Recovery, %      77.9%   79.4% (1.5pp)   76.2%   1.7pp   78.2%   81.3% (3.1pp)
Gold
production,
Koz              194.0   178.4      9%   165.3     17%   515.0   550.7    (6%)
Gold sold, Koz   193.2   149.4     29%   165.2     17%   514.6   521.2    (1%)
Average
realised gold
price per
ounce sold,
US$/oz           1,670   1,697    (2%)   1,602      4%   1,654   1,529      8%

Ore processed multiplied by head grade and multiplied by recovery may not be
equal to gold produced due to differences in work in progress figures and
volumes of silver production

(5) Presented only for open pit mines.

In the nine months ended September 30, 2012 the Company produced 11,843 kt  of 
mined ore, a 1% increase from 11,689 kt in the first nine months of 2011.  Ore 
milled in the nine months ended September 30, 2012 decreased to 11,238 kt from
12,071 kt in the nine months ended September 30, 2011.

Gold production was 35.7 Koz lower than  in the first nine months of 2011  and 
amounted to 515.0 Koz (nine months  ended September 30, 2011: 550.7 Koz).  The 
decrease was largely  as a  result of lower  ore milled  volumes and  recovery 
levels at certain mines. The volume of  gold sold decreased from 521.2 Koz  in 
the nine months ended September,  30 2011 to 514.6 Koz  in the same period  of 
2012.

We provide a more detailed explanation in  the mine site summary below in  the 
next section.



Operating Review
Summary

Guinea

Lefa

                

Overview

Lefa mine  has  demonstrated improvements  in  a number  of  production  KPIs. 
Availability and productivity of mining and processing equipment has  improved 
significantly YoY which translated into higher production volumes in Q3  2012. 
Importantly, the heavy wet season that peaks in Q3 has had a minimal impact on
Lefa productivity this  year due  to preparatory  measures taken  by the  mine 
management. Head grade in Q3  2012 was 13% lower compared  to a year ago,  and 
12% lower compared  to the  previous quarter. The  geological model  indicates 
that ore  grade  will start  improving  in  December and  better  grades  will 
continue in 2013. Gold recovery at Lefa,  while better than in Q1 2012 and  in 
line with Q2 2012, is still below target levels. To address this we are in the
process of implementing a series  of technical improvements: upgrading  Carbon 
in Pulp ("CIP")  tanks into Carbon  in Leach ("CIL")  tanks, and erecting  new 
screening systems,  and additional  elution columns  to improve  the  recovery 
rate. These improvements  are expected  to be completed  by the  end of  2012. 
Production costs remained high  during Q3 2012; as  head grade and  recoveries 
improve going  forward,  and the  efficiency  program starts  to  deliver  its 
initial results, we expect cash costs to fall significantly.

                       Q3    Q3 Change,    Q2 Change,                  Change,
Operating results    2012  2011     YoY  2012     QoQ 9M 2012 9M 2011      YoY
LTIFR                0.82  0.00    n.a.  0.91   (10%)    0.88    0.95     (7%)
Run of mine, kt     5,838 3,783     54% 6,405    (9%)  19,386  14,812      31%
Waste mined, kt     4,686 2,581     82% 4,576      2%  14,545   9,776      49%
Ore mined, kt       1,152 1,201    (4%) 1,829   (37%)   4,841   5,036     (4%)
Stripping ratio,     4.07  2.15     89%  2.50     63%    3.00    1.94      55%
tn/tn
Ore milled, kt      1,582 1,441     10% 1,466      8%   4,424   4,464     (1%)
Grade, g/t           0.99  1.14   (13%)  1.13   (12%)    1.08    1.20    (10%)
Recovery, %         83.3% 85.3% (2.0pp) 83.6% (0.3pp)   83.3%   86.4%  (3.1pp)
Gold production,     40.7  36.9     10%  43.6    (7%)   124.1   146.4    (15%)
Koz
Gold sold, Koz       40.7  36.9     10%  43.6    (7%)   124.1   146.4    (15%)
Average realised    1,654 1,716    (4%) 1,616      2%   1,653   1,518       9%
gold price per
ounce sold, US$/oz
                       Q3    Q3 Change,    Q2 Change,                  Change,
Financial results    2012  2011     YoY  2012     QoQ 9M 2012 9M 2011      YoY
Revenue, US$m        67.3  63.3      6%  70.4    (4%)   205.0   222.3     (8%)
EBITDA, US$m ^(6)    17.1  17.0      1%  14.7     16%    48.4    83.6    (42%)
EBITDA margin, %    25.4% 26.8% (1.4pp) 20.8%   4.6pp   23.6%   37.6% (14.0pp)
^(6)
TCC, US$/oz ^(6)    1,269 1,027     24% 1,202      6%   1,180     838      41%

Ore processed multiplied by head grade and multiplied by recovery may not be
equal gold produced due to differences in work in progress figures and volumes
of silver production.

(6) EBITDA, EBITDA margin and TCC are not measures defined by IFRS. See
"Non-IFRS Financial Measures".



Operating Review
Summary continued

Burkina Faso

Taparko           

Overview

Taparko mine YoY production dropped 13%. Since the beginning of 2012,  Taparko 
has experienced a  drop in  recoveries to levels  below 80%.  To address  this 
problem, a regrind  mill and two  leach tanks  were installed at  the mine  in 
early August 2012.  During the installation,  plant productivity was  reduced, 
resulting in  lower ore  processing  volumes. Since  the installation  of  the 
regrind mill, recoveries at Taparko have  started to improve, reaching 83%  in 
Q3 2012. This is however still below our target of 85-90% and mine  management 
continues to optimize milling parameters.

                                 Q3  Change,    Q2 Change,    9M    9M Change,
Operating results    Q3 2012  2011      YoY  2012     QoQ  2012  2011     YoY
LTIFR                    0.00  0.00     n.a.  0.00    n.a.  0.00  2.13    n.a.
Run of mine, kt         3,100 3,378     (8%) 2,715     14% 8,789 8,737      1%
Waste mined, kt         2,669 2,962    (10%) 2,314     15% 7,595 7,643    (1%)
Ore mined, kt             431   416       4%   401      7% 1,194 1,093      9%
Stripping ratio,
tn/tn                    6.19  7.12    (13%)  5.77      7%  6.36  6.99    (9%)
Ore milled, kt            406   364      12%   361     12% 1,171 1,096      7%
Grade, g/t               2.80  2.89     (3%)  3.19   (12%)  3.00  3.33   (10%)
Recovery, %             82.8% 83.9%  (1.1pp) 79.0%   3.8pp 82.2% 84.8% (2.6pp)
Gold production, Koz     29.4  33.8    (13%)  29.3      0%  91.2 105.1  -(13%)
Gold sold, Koz           29.4  33.8    (13%)  29.3      0%  91.2 105.1  -(13%)
Average realised gold
price per ounce sold,
US$/oz                  1,688 1,689       0% 1,597      6% 1,653 1,525      8%
                                 Q3  Change,    Q2 Change,    9M    9M Change,
Financial results     Q3 2012  2011      YoY  2012     QoQ  2012  2011     YoY
Revenue, US$m            49.6  57.1    (13%)  46.8      6% 150.7 160.3    (6%)
EBITDA, US$m ^(7)        26.4  38.5    (31%)  28.1    (6%)  89.2 107.9   (17%)
EBITDA margin, % ^(7)   53.3% 67.3% (14.0pp) 60.1% (6.8pp) 59.2% 67.3% (8.1pp)
TCC, US$/oz ^(7)         720  516      40%  599     20%  625  458     36%

Ore processed multiplied by head grade and multiplied by recovery may not be
equal gold produced due to differences in work in progress figures and volumes
of silver production.

(7) EBITDA, EBITDA margin and TCC are not measures defined by IFRS. See
"Non-IFRS Financial Measures".





Operating Review
Summary continued

Russia

Buryatzoloto      

Overview

While ore milled  volumes and  recovery remained stable  at both  Buryatzoloto 
underground mines, head grade reduced  significantly (-32% YoY; -20% QoQ)  due 
to lower than expected geological ore grade and higher dilution. As previously
announced, we have intensified  preparation works in order  to gain access  to 
new ore blocks. Also, we are currently  working on a new geological model  for 
the Buryatzoloto mines, which should  provide better visibility on the  shapes 
of the  ore bodies  and their  grade distribution.  Due to  the complexity  of 
Buryatzoloto's geology, the new  model will only be  applied to mine  planning 
towards the  end  of H1  2013.  Until then,  grade  will remain  a  source  of 
uncertainty for Buryatzoloto production.

                          Q3    Q3  Change,    Q2 Change,    9M    9M  Change,
Operating results       2012  2011      YoY  2012     QoQ  2012  2011      YoY
LTIFR                   3.37  6.37    (47%)  2.11     60%  3.20  3.38     (5%)
Ore mined, kt            172   162       6%   178    (3%)   519   487       7%
Ore milled, kt           178   177       1%   173      3%   522   506       3%
Grade, g/t              4.49  6.59    (32%)  5.58   (20%)  5.29  6.62    (20%)
Recovery, %            92.8% 92.3%    0.5pp 92.2%   0.6pp 93.2% 91.8%    1.4pp
Gold production, Koz    24.7  33.6    (26%)  30.2   (18%)  86.6  98.1    (12%)
Gold sold, Koz          24.7  21.5      15%  30.2   (18%)  86.6  85.7       1%
Average realised gold
price per ounce sold,
US$/oz                 1,661 1,691     (2%) 1,623      2% 1,652 1,526       8%
                          Q3    Q3  Change,    Q2 Change,    9M    9M  Change,
Financial results       2012  2011      YoY  2012     QoQ  2012  2011      YoY
Revenue, US$m           41.1  36.3      13%  49.1   (16%) 143.0 130.8       9%
EBITDA, US$m ^(8)       16.7  19.2    (13%)  23.7   (29%)  68.5  80.3    (15%)
EBITDA margin, % ^(8)  40.7% 52.8% (12.1pp) 48.3% (7.6pp) 47.9% 61.4% (13.5pp)
TCC, US$/oz ^(8)        783  692      13%  724      8%  761  707       8%

Ore processed multiplied by head grade and multiplied by recovery may not be
equal to gold produced due to differences in work in progress figures and
volumes of silver production.

(8) EBITDA, EBITDA margin and TCC are not measures defined by IFRS. See
"Non-IFRS Financial Measures".



Operating Review
Summary continued

Russia

Berezitovy        

Overview

Productivity  (ore  milled)  increased  by  20%  YoY  with  record   quarterly 
production volumes of 33.4 Koz compared to 25.5 Koz for Q3 2011 (31%  increase 
YoY). With the second  crusher and new  pinion successfully installed  halfway 
through Q2 2012,  we expect strong  production performance at  the mine  going 
forward. The  new heap  leach operation  on site  is on  track to  start  gold 
production in Q4 2012.

                        Q3    Q3 Change,    Q2 Change,                 Change,
Operating results     2012  2011     YoY  2012     QoQ 9M 2012 9M 2011     YoY
LTIFR                 0.00  1.97    n.a.  1.80    n.a.    1.20    0.67     79%
Run of mine, kt      3,852 4,829   (20%) 4,233    (9%)  12,443  13,735    (9%)
Waste mined, kt      3,403 4,462   (24%) 3,771   (10%)  11,090  12,466   (11%)
Ore mined, kt          449   367     22%   462    (3%)   1,353   1,269      7%
Stripping ratio,
tn/tn                 7.57 12.16   (38%)  8.16    (7%)    8.19    9.82   (17%)
Ore milled, kt         439   366     20%   333     32%   1,016   1,058    (4%)
Grade, g/t            2.65  2.54      4%  2.67    (1%)    2.70    2.59      4%
Recovery, %          89.8% 91.0% (1.2pp) 89.8%   0.0pp   90.0%   89.5%   0.5pp
Gold production, Koz  33.4  25.5     31%  25.5     31%    79.2    77.7      2%
Gold sold, Koz        33.4  15.4    117%  25.5     31%    79.3    67.6     17%
Average realised
gold price per ounce
sold, US$/oz         1,671 1,620      3% 1,588      5%   1,648   1,505     10%
                        Q3    Q3 Change,    Q2 Change,                 Change,
Financial results     2012  2011     YoY  2012     QoQ 9M 2012 9M 2011     YoY
Revenue, US$m         55.8  24.9    124%  40.5     38%   130.7   101.7     29%
EBITDA, US$m ^(9)     34.0  11.3    201%  22.1     54%    75.2    52.0     45%
EBITDA margin, %     60.9% 45.5%
^(9)                              15.4pp 54.6%   6.3pp   57.5%   51.1%   6.4pp
TCC, US$/oz ^(9)      595  619    (4%)   675   (12%)     641     590      9%

Ore processed multiplied by head grade and multiplied by recovery may not be
equal gold produced due to differences in work in progress figures and volumes
of silver production.

(9) EBITDA, EBITDA margin and TCC are not measures defined by IFRS. See
"Non-IFRS Financial Measures".



Operating Review
Summary continued

Russia

Neryungri         

Overview

As usual with Russian heap leach operations, the mine began to produce
increasing amounts of gold in Q2 and Q3 2012 in warmer weather. Four new dump
trucks, an excavator and a mobile crusher arrived in May, and as anticipated,
we achieved higher mining volumes and productivity at the Neryungri mine in H2
2012, with a lower stripping ratio.

                                     Change,    Q2 Change,    9M    9M Change,
Operating results    Q3 2012 Q3 2011     YoY  2012     QoQ  2012  2011     YoY
LTIFR                   0.00    2.19    n.a.  0.00    n.a.  0.00  2.91    n.a.
Run of mine, kt        2,933   2,027     45% 2,761      6% 8,662 6,465     34%
Waste mined, kt        2,187   1,322     65% 2,228    (2%) 7,201 4,417     63%
Ore mined, kt            746     704      6%   533     40% 1,461 2,048   (29%)
Stripping ratio,
tn/tn                   2.93    1.88     56%  4.18   (30%)  4.93  2.16    129%
Ore milled, kt         1,091   1,014      8%   687     59% 1,992 2,153    (7%)
Grade, g/t              1.03    1.10    (6%)  0.94     10%  1.00  1.12   (11%)
Recovery, % ^(10)      75.0%   75.2% (0.2pp) 75.0%   0.0pp 75.0% 75.0%   0.0pp
Gold production, Koz    23.9    26.2    (9%)  11.3    112%  43.9  50.1   (12%)
Gold sold, Koz          23.2    21.1     10%  11.2    106%  43.5  44.8    (3%)
Average realised
gold price per ounce
sold, US$/oz           1,673   1,686    (1%) 1,574      6% 1,653 1,583      4%
                                     Change,    Q2 Change,    9M    9M Change,
Financial results    Q3 2012 Q3 2011     YoY  2012     QoQ  2012  2011     YoY
Revenue, US$m           38.8    35.6      9%  17.7    119%  71.8  71.0      1%
EBITDA, US$m ^(11)      18.2    18.3      0%   7.4    145%  33.2  29.2     14%
EBITDA margin, %
^(11)                  46.9%   51.3% (4.4pp) 42.1%   4.8pp 46.2% 41.1%   5.1pp
TCC, US$/oz ^(11)       730    557     31%  843   (13%)  772  582     33%

Ore processed multiplied by head grade and multiplied by recovery may not be
equal gold produced due to differences in work in progress figures and volumes
of silver production.

(10) Technical recovery rate. Actual recovery may differ due to seasonal
effects.

(11) EBITDA, EBITDA margin and TCC are not measures defined by IFRS. See
"Non-IFRS Financial Measures".



Operating Review
Summary continued

Russia

Aprelkovo         

Overview

We continue to mine ore from the pit and substantially reduce volumes that we
used from the Run of Mine ("ROM") stockpile. We expect that the processing of
higher grade ores will balance the reduced recoveries of transitional and
sulfide ores. We expect this to lead to flat production for the full year
2012.

                          Q3    Q3  Change,    Q2 Change,    9M    9M  Change,
Operating results       2012  2011      YoY  2012     QoQ  2012  2011      YoY
LTIFR                   7.02  0.00     n.a.  0.00    n.a.  2.72  0.00     n.a.
Run of mine, kt        2,892 2,143      35% 1,856     56% 7,056 7,029       0%
Waste mined, kt        2,135 1,460      46% 1,123     90% 5,126 5,816    (12%)
Ore mined, kt            758   683      11%   733      3% 1,930 1,213      59%
Stripping ratio, tn/tn  2.82  2.14      32%  1.53     84%  2.66  4.79    (45%)
Ore milled, kt           520   976    (47%)   739   (30%) 1,329 2,181    (39%)
Grade, g/t              1.43  0.73      96%  1.32      8%  1.35  0.78      73%
Recovery, % ^(12)      47.7% 60.1% (12.4pp) 47.7%   0.0pp 47.7% 60.0% (12.3pp)
Gold production, Koz    13.9  11.7      19%   6.6    111%  24.3  21.3      14%
Gold sold, Koz          13.9   9.8      42%   6.6    110%  24.3  19.5      25%
Average realised gold
price per ounce sold,
US$/oz                 1,690 1,666       1% 1,575      7% 1,660 1,578       5%
                          Q3    Q3  Change,    Q2 Change,    9M    9M  Change,
Financial results       2012  2011      YoY  2012     QoQ  2012  2011      YoY
Revenue, US$m           23.4  16.4      43%  10.4    125%  40.3  30.8      31%
EBITDA, US$m ^(13)       9.4   7.4      27%  3.6    161%  15.4  12.4      24%
EBITDA margin, % ^(13) 40.0% 45.4%  (5.4pp) 34.4%   5.6pp 38.2% 40.1%  (1.9pp)
TCC, US$/oz ^(13)       884  667      33%  865      2%  876  650      35%

Ore processed multiplied by head grade and multiplied by recovery may not be
equal gold produced due to differences in work in progress figures and volumes
of silver production.

(12) Technical recovery rate. Actual recovery may differ due to seasonal
effects.

(13) EBITDA, EBITDA margin and TCC are not measures defined by IFRS. See
"Non-IFRS Financial Measures".



Operating Review
Summary continued

Kazakhstan

Suzdal

                 

Overview

Production at Suzdal substantially increased in Q3 2012 due to an increase  in 
head grade and  recovery. The recovery  rate has grown  by over 10  percentage 
points as a result  of a series of  measures implemented at the  metallurgical 
plant, including optimization of floatation, CIL configuration, and parameters
of bio-leaching. The current recovery level of  69% is at a historic high  for 
Suzdal. Nevertheless, management  sees potential for  further improvement  and 
will continue to optimize plant metallurgy  in order to achieve recoveries  in 
excess of 70%. We also expect to benefit from the significantly increased  ore 
milled levels (137  kt in  Q3 2012,  an increase of  14% YoY)  and head  grade 
improvements (7.72 g/t in Q3 2012, an increase of 23% YoY).

                            Q3    Q3 Change,    Q2 Change,    9M    9M Change,
Operating results         2012  2011     YoY  2012     QoQ  2012  2011     YoY
LTIFR                     2.27  0.00    n.a.  0.00    n.a.  0.78  1.65   (53%)
Ore mined^(16), kt         102   120   (15%)   103    (1%)   340   331      3%
Ore milled^(16), kt        137   120     14%   108     27%   369   378    (2%)
Grade^(16), g/t           7.72  6.30     23%  7.52      3%  7.52  6.80     11%
Recovery^(16), %         69.0% 58.2%  10.8pp 65.0%   4.0pp 65.0% 62.2%   2.8pp
Gold production, Koz
^(14)                     27.9  10.9    156%  18.7     49%  65.7  52.1     26%
Gold sold, Koz ^(14)      27.9  10.9    156%  18.7     49%  65.7  52.1     26%
Average realised gold
price per ounce sold,
US$/oz ^(14)             1,667 1,821    (8%) 1,593      5% 1,666 1,535      9%
                            Q3    Q3 Change,    Q2 Change,    9M    9M Change,
Financial results         2012  2011     YoY  2012     QoQ  2012  2011     YoY
Revenue, US$m             46.6  19.8    136%  29.8     56% 109.5  79.9     37%
EBITDA, US$m ^(15)        16.3   6.1    167%   9.0     83%  37.5  30.4     23%
EBITDA margin, % ^(15)   35.0% 30.9% (4.1pp) 30.3%   4.7pp 34.2% 38.1% (3.9pp)
TCC, US$/oz ^(14)(15)      715   859   (17%)   884   (19%)   784   777      1%

Ore processed multiplied by head grade and multiplied by recovery may not be
equal gold produced due to differences in work in progress figures and volumes
of silver production.

(14) Represents figures for Celtic Group, includes gold from Zherek.TCC does
not include Zherek

(15) EBITDA, EBITDA margin and TCC are not measures defined by IFRS. See
"Non-IFRS Financial Measures". EBITDA and EBITDA margin include Balazhal
figures

(16) Represents figures for Alel



Telephone Conference and Q&A Session

Nordgold CEO  Nikolay  Zelenski and  CFO  Sergey Zinkovich  will  present  the 
Company's financial  and operating  results  for the  third quarter  and  nine 
months ended September 30, 2012 in a  conference call today at 9.00 am  London 
time. The presentation will  be followed by a  Q&A session. To participate  in 
the telephone conference, please register in advance.

Registration Details

Conference Title: Nordgold Presentation of 9m 2012 Financial Results

Conference ID: 4576455



Please use one of the following dial-in numbers to connect to the conference:

Russia

810-8002-198-4011

United Kingdom

44-20-7190-1595 (Local access)

0800-358-5263 (Toll free)



Webcast

The press  and  analyst  conference  will also  be  broadcast  live  over  the 
Internet, and will be available as a recording on the Company's website  after 
the conference.

To register and participate in the webcast please follow the link:
http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=1881

Materials

The Company's financial and operating results  for the third quarter and  nine 
months ended  September  30,  2012  and the  presentation  materials  will  be 
available from  7:00 am  London time  on November  16, 2012  on the  Company's 
official website: www.nordgold.comand will be available at www.sedar.com.





Non-IFRS Financial Measures

This press release includes certain measures that are not measures defined  by 
IFRS. These measures are  EBITDA and EBITDA margin,  total cash costs and  net 
debt, and they are used by the management of Nordgold to assess the  Company's 
financial performance. However, these measures  should not be used instead  of 
or considered as alternatives to Nordgold's historical financial results based
on IFRS. There are no generally accepted principles governing the  calculation 
of these measures  and the criteria  upon which these  measures are based  can 
vary from company to company.



EBITDA and EBITDA Margin

EBITDA results  from operating  activities adjusted  for income  tax  expense, 
finance income and costs, depreciation and amortisation charges, impairment  / 
(reversal of impairment)  of non-current  assets, negative  goodwill, the  net 
result  from  the   disposal  of   property,  plant   and  equipment,   equity 
remeasurement loss / (gain),  social expenses and  charity donations, and  net 
gain on disposal of subsidiaries. Nordgold uses EBITDA in the reporting of its
segments and in assessing its growth and operational efficiencies. The  EBITDA 
margin is EBITDA as a percentage of sales.

Information regarding  EBITDA and  the EBITDA  margin or  similar measures  is 
sometimes used  by  investors  to  evaluate  the  efficiency  of  a  company's 
operations and its ability  to employ its earnings  toward repayment of  debt, 
capital expenditures and working capital requirements.

EBITDA, by itself, does not provide  a sufficient basis to compare  Nordgold's 
performance with  that of  other companies  and should  not be  considered  in 
isolation or as a substitute for operating  profit or any other measure as  an 
indicator of operating  performance, or  as an alternative  to cash  generated 
from operating activities as a measure of liquidity.

Total Cash Cost

Total cash costs  measure what Nordgold  considers to be  the cash costs  most 
relevant to  its  principal  operations.  Total cash  cost  is  calculated  by 
subtracting  non-cash,  central   corporate  and   ancillary  or   exceptional 
operational costs  (including  depreciation and  amortisation,  provision  for 
asset  retirement  obligations,   allowance  for   slow-moving  and   obsolete 
inventories, fair value adjustments  for work-in-progress and finished  goods, 
corporate overheads, allowance  for bad debts,  unused employee vacation  time 
and employee bonuses,  change in  finished goods and  revenue of  by-products) 
from cost of sales, general and  administrative expenses and taxes other  than 
income tax.

Net Debt

In order to assess Nordgold's liquidity position, management uses a measure of
net cash or debt, which is the sum of short- and long-term debt finance, which
are  divided  between  debt  and   lease  liabilities,  less  cash  and   cash 
equivalents. Short-term  and long-term  debt include  loans and  other  credit 
facilities, accrued interest and bank overdrafts.





Enquiries

Nordgold                                              
Alexey Shchedrin                                      Tel: +7 (917) 502 2048

Director of Corporate Communications & Investor
Relations
Diana Asonova                                         Tel: +7 (916) 347 9847

Press Secretary
Maitland                                              
Peter Ogden                                           Tel: +44 (0)20 7379 5151

James Devas

For further information on Nordgold please visit the Company's website -
www.nordgold.com

Notes to Editors

About Nordgold

Nordgold (LSE: NORD) is a pure-play emerging-markets gold producer established
in 2007. The  Company has  expanded rapidly through  acquisitions and  organic 
investment, achieving a rate of growth  unmatched in the industry during  that 
period. In 2011 Nordgold's gold production reached 754 Koz.

The Company's proved and probable gold reserves as of January 1, 2012 totalled
12.7 Moz, while measured, indicated  and inferred resources were estimated  at 
29.5 Moz.

The company operates 8 active mines and has 2 development projects, 5 advanced
exploration projects and a diverse portfolio of early exploration projects and
licenses in  Russia, Kazakhstan,  Burkina Faso  and Guinea.  Nordgold  employs 
about 10,000 workers in CIS and West Africa.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release, including any information
as to  Nordgolds  estimates,  strategy,  projects,  plans,  prospects,  future 
outlook, anticipated  events  or  results or  future  financial  or  operating 
performance  and  production,  may  constitute  "forward-looking  information" 
within the meaning  of Canadian  securities laws. All  statements, other  than 
statements  of  historical   fact,  constitute  forward-looking   information. 
Forward-looking information can often,  but not always,  be identified by  the 
use of words such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends",  "anticipates", "predicts",  "potential", 
"continue" or  "believes", or  variations (including  negative variations)  of 
such words,  or statements  that  certain actions,  events or  results  "may", 
"could", "would", "should", "might", "potential to", or "will" be taken, occur
or be achieved or  other similar expressions concerning  matters that are  not 
historical facts. The purpose of forward-looking information is to provide the
reader with information about management's expectations and plans. Readers are
cautioned  that  forward-looking  statements  are  not  guarantees  of  future 
performance. All forward-looking statements made or incorporated in this press
release are qualified by these cautionary statements.

Forward-looking   information   involves   significant   risks,   assumptions, 
uncertainties and  other factors  that may  cause actual  future realities  or 
anticipated events to differ materially from those expressed or implied in any
forward-looking information and, accordingly, should not be read as guarantees
of future performance or realities. Material factors or assumptions that  were 
applied  in  formulating  the  forward-looking  information  contained  herein 
include the assumption  that the  business and  economic conditions  affecting 
Nordgold's operations  will continue  substantially  in their  current  state, 
including, without limitation,  with respect to  industry conditions,  general 
levels of  economic activity,  market  prices for  gold, competition  for  and 
scarcity of gold mine assets,  achievement of anticipated mineral reserve  and 
mineral resource tonnages  or grades,  ability to  develop additional  mineral 
reserves, acquisition  of  funding  for  capital  expenditures,  adequacy  and 
availability of production,  processing and  product delivery  infrastructure, 
electricity costs, continuity  and availability of  personnel and third  party 
service providers,  local  and  international laws  and  regulations,  foreign 
currency exchange rates and interest  rates, inflation, taxes, and that  there 
will be no  unplanned material  changes to  Nordgold's facilities,  equipment, 
customer and  employee relations  and credit  arrangements. Nordgold  cautions 
that the foregoing list of material factors and assumptions is not exhaustive.
Many of these assumptions are based on factors and events that are not  within 
the control  of  Nordgold and  there  is no  assurance  that they  will  prove 
correct. The risks and other factors that may cause actual future realities or
anticipated events to differ materially from those expressed or implied in any
forward-looking information include, but are  not limited to the  satisfaction 
or waiver of  the conditions to  completing the Offer;  Nordgold's ability  to 
execute  its  development   and  exploration  programs;   the  financial   and 
operational performance  of Nordgold;  civil  disturbance, armed  conflict  or 
security issues at the  mineral projects of  Nordgold; political factors;  the 
capital requirements associated with operations; dependence on key personnel;
compliance  with   environmental   regulations;  estimated   production;   and 
competition.

Actual performance or achievement could differ materially from that  expressed 
in, or implied by, any forward-looking information in this press release  and, 
accordingly,  investors  should   not  place  undue   reliance  on  any   such 
forward-looking information. Further,  any forward-looking information  speaks 
only as of the  date on which  such statement is made,  and Nordgold does  not 
undertake any obligation to update any forward-looking information to  reflect 
information, events, results,  circumstances or  realities after  the date  on 
which such statement  is made or  to reflect the  occurrence of  unanticipated 
events, except  as  required  by  applicable  Canadian  securities  laws.  All 
forward-looking information contained  in this press  release is qualified  by 
such cautionary statements. New risk factors emerge from time to time, and  it 
is not possible  for management to  predict all  of such risk  factors and  to 
assess in advance the impact of each such factor on Nordgold's business or the
extent to  which any  factor,  or combination  of  factors, may  cause  actual 
realities to differ  materially from  those contained  in any  forward-looking 
information.








                          

                    Nord Gold N.V.

                          

                          

                          

                          

 Consolidated interim condensed financial statements

as at and for the nine months ended September 30, 2012

                          
























                                   Contents



Consolidated        interim         condensed        income         statements 
 1

Consolidated     interim     condensed     statements     of     comprehensive 
income 2

Consolidated     interim      condensed      statements      of      financial 
position 3

Consolidated      interim       condensed       statements       of       cash 
flows 4

Consolidated    interim     condensed     statements     of     changes     in 
equity 5

Notes     to     the     consolidated     interim     condensed      financial 
statements 6-17



1.
Operations
6

2. Basis for preparation of the consolidated interim condensed
financial statements 6

3. Segment
reporting
8

4.
Sales
10

5. General and administrative
expenses
11

6. Other operating expenses,
net
11

7. Finance income and
costs
12

8. Related party
transactions
13

9. Related party
balances
13

10. Debt
finance
14

11. Earnings per
share
15

12. Acquisitions and
disposals
16

13. Commitments and
contingencies
16

14. Events after the reporting
period
17







                               Nine months ended         Three months ended
                                 September 30,             September 30,
                               2012         2011         2012         2011
                      Note  (unaudited)  (unaudited)  (unaudited)  (unaudited)
Sales                  4      851,071    796,868    322,532    253,435
Cost of sales                (562,128)   (459,537)   (220,023)   (145,010)
Gross profit                  288,943    337,331    102,509    108,425
General and
administrative
expenses               5      (48,028)    (21,712)    (16,118)    (15,503)
Taxes other than
income tax                    (54,511)    (56,146)    (20,758)    (20,802)
Other operating
income/(expenses),
net                    6        6,080     (8,524)      4,720       (852)
Profit from
operations                    192,484    250,949     70,353     71,268
Finance income         7        3,133     10,050     11,287      2,124
Finance costs          7      (29,187)    (40,244)     (8,361)    (21,466)
Profit before income
tax                           166,430    220,755     73,279     51,926
Income tax expense            (43,216)    (46,973)    (15,317)     (8,167)
Profit for the period         123,214    173,782     57,962     43,759
Attributable to:
Shareholders of the
Company                        76,873    110,296     40,950     27,690
Non-controlling
interest                       46,341     63,486     17,012     16,069
Weighted average
number of shares
outstanding during
the period (millions
of shares)             11     358.794    358.794    358.794    358.794
Earnings per share
Basic and diluted
profit per share (US
dollars)               11        0.21       0.31       0.11       0.08









                         Nine months ended September     Three months ended
                                     30,                   September 30,
                             2012           2011         2012         2011
                         (unaudited)    (unaudited)   (unaudited)  (unaudited)
Profit for the period        123,214       173,782      57,962      43,759
Foreign exchange              25,838       (45,874)      51,821     (82,020)
differences
Changes in fair value of       4,036             -       5,366           -
cash flow hedges
Revaluation of
available-for-sale             4,055       (19,957)      20,440      (2,769)
financial investments
Deferred tax on
revaluation of                  (522)         1,902      (2,911)      (1,715)
available-for-sale
investments
Other comprehensive
income/(loss) for the         33,407       (63,929)      74,716     (86,504)
period, net of tax
Total comprehensive          156,621       109,853     132,678     (42,745)
income for the period
Attributable to:
Shareholders of the          102,470        61,776      99,233     (37,063)
Company
Non-controlling interest      54,151        48,077      33,445      (5,682)





                                         September 30, 2012
                                   Note     (unaudited)      December 31, 2011
Assets
Current assets
Cash and cash equivalents                          102,406           217,133
Accounts receivable                                 89,918            74,328
Inventories                                        525,763           375,281
VAT recoverable                                     85,990            57,031
Short-term financial investments                    18,199             4,043
Income tax receivable                                6,155             3,051
Total current assets                               828,431           730,867
Non-current assets
Property, plant and equipment                      753,565           574,831
Intangible assets                                1,251,914         1,242,820
Long-term financial investments                     92,427            86,371
Investment in joint venture                          4,856             4,769
Restricted cash                                      4,880             3,857
Deferred tax assets                                  2,137             2,709
Other non-current assets                             1,549             1,657
Total non-current assets                         2,111,328         1,917,014
Total assets                                     2,939,759         2,647,881
Liabilities and shareholders'
equity
Current liabilities
Short-term debt finance             10               1,385           316,328
Accounts payable                                   193,316           172,697
Income tax payable                                  16,096            18,238
Provisions                                          24,500            24,538
Total current liabilities                          235,297           531,801
Non-current liabilities
Long-term debt finance              10             521,849            84,062
Provisions                                          65,641            61,283
Deferred tax liabilities                           195,966           201,034
Other non-current liabilities                       10,262            13,474
Total non-current liabilities                      793,718           359,853
Total liabilities                                1,029,015           891,654
Equity
Share capital                                    1,244,501         1,244,501
Additional capital                                 862,340           862,340
Foreign exchange differences                       (52,454)           (71,367)
Retained earnings                                 (473,480)          (550,353)
Revaluation reserves                                37,026            30,342
Total equity attributable to                     1,617,933         1,515,463
shareholders of the Company
Non-controlling interest                           292,811           240,764
Total equity                                     1,910,744         1,756,227
Total equity and liabilities                     2,939,759         2,647,881







                                               Nine months ended September 30,
                                                    2012             2011
                                                (unaudited)       (unaudited)
Operating activities
Profit for the period                                123,214         173,782
Adjustments for non-cash movements:
Finance costs, net                                    26,054          30,194
Income tax expense                                    43,216          46,973
Depreciation and amortization                        154,565         126,429
Impairment of non-current assets                         205           1,453
Net loss from associates and joint ventures              116             414
Gain on disposal of subsidiaries                           -            (412)
Loss on disposal of property, plant and                  430             528
equipment
Movements in provisions for inventories,               4,429         (13,267)
receivables and other provisions
Impairment of available-for-sale financial               240           6,167
assets
Changes in operating assets and liabilities:
Accounts receivable                                  (15,245)          (2,445)
Inventories                                         (133,628)         (90,845)
VAT recoverable                                      (28,421)         (20,548)
Accounts payable                                       5,970          13,361
Net other changes in operating assets and              6,243           7,984
liabilities
Cash flows from operations                           187,388         279,768
Interest paid                                        (60,401)         (10,038)
Income taxes paid                                    (56,016)         (56,410)
Cash flows from operating activities                  70,971         213,320
Investing activities
Additions to property, plant and equipment          (232,782)        (120,604)
Additions to exploration and evaluation assets       (96,793)         (76,111)
Additions to other intangible assets                    (218)            (136)
Additions to financial investments                   (14,101)         (13,800)
Acquisition of entities under common control               -              37
Proceeds from disposal of property, plant and            112           1,235
equipment
Proceeds from disposal of financial                      400          12,223
investments
Proceeds from disposal of subsidiaries, net of             -             457
cash disposed
Interest received                                      2,266           4,265
Cash used in investing activities                   (341,116)        (192,434)
Financing activities
Proceeds from debt finance                           529,136         116,883
Repayment of debt finance                           (378,669)         (86,029)
Payment of finance lease liabilities                       -            (572)
Acquisition of non-controlling interest                    -         (59,440)
Proceeds from issue of share capital                       -              43
Equity transaction costs paid                              -          (9,171)
Dividends paid                                        (2,104)               -
Cash from / (used in) financing activities           148,363         (38,286)
Net (decrease) / increase in cash and cash          (121,782)         (17,400)
equivalents
Cash and cash equivalents at beginning of the        217,133         212,204
period
Effect of exchange rate fluctuations on cash           7,055         (10,326)
and cash equivalents
Cash and cash equivalents at end of the period       102,406         184,478







                                                                                            Non-controlling
                             Attributable to the shareholders of Nord Gold N.V.                interest        Total
                                             Foreign
                     Share     Additional   exchange    Retained   Revaluation
                    capital     capital    differences  earnings    reserves      Total
Balance at January 1,244,501    862,340     (46,671)  (715,643)      47,266  1,391,793         231,031  1,622,824
1, 2011
Profit for the
period                    -          -           -   110,296           -    110,296          63,486    173,782
(unaudited)
Foreign exchange
differences                -          -     (34,782)         -           -    (34,782)         (11,092)    (45,874)
(unaudited)
Revaluation of
available-for-sale
financial                  -          -           -         -     (15,088)    (15,088)          (4,869)    (19,957)
investments
(unaudited)
Deferred tax on
revaluation of
available-for-sale         -          -           -         -       1,350      1,350             552      1,902
investments
(unaudited)
Total
comprehensive
income for the                                                                     61,776          48,077    109,853
period
(unaudited)
Acquisition of
entities under             -          -           -      (630)           -       (630)               -       (630)
common control
(unaudited)
Acquisitions of
non-controlling
interest without a         -          -           -    (2,622)           -     (2,622)         (56,818)    (59,440)
change in control
(unaudited)
Balance at
September 30, 2011 1,244,501    862,340     (81,453)  (608,599)      33,528  1,450,317         222,290  1,672,607
(unaudited)
Balance at January 1,244,501    862,340     (71,367)  (550,353)      30,342  1,515,463         240,764  1,756,227
1, 2012
Profit for the             -          -           -    76,873           -     76,873          46,341    123,214
period (unaudited)
Foreign exchange
differences                -          -      18,913         -           -     18,913           6,925     25,838
(unaudited)
Changes in fair
value of cash flow         -          -           -         -       4,036      4,036               -      4,036
hedges (unaudited)
Revaluation of
available-for-sale
financial                  -          -           -         -       3,040      3,040           1,015      4,055
investments
(unaudited)
Deferred tax on
revaluation of
available-for-sale         -          -           -         -        (392)       (392)            (130)       (522)
investments
(unaudited)
Total
comprehensive                                                                     102,470          54,151    156,621
income for the
period (unaudited)
Dividends                  -          -           -         -           -          -          (2,104)     (2,104)
(unaudited)
Balance at
September 30, 2012 1,244,501    862,340     (52,454)  (473,480)      37,026  1,617,933         292,811  1,910,744
(unaudited)



1. Operations



Nord Gold N.V. (the "Company") and  its subsidiaries (together referred to  as 
the "Group") comprise a Dutch public  limited liability company as defined  in 
the Netherlands  Civil Code,  and companies  located abroad.  The Company  was 
established as a private  limited liability company in  2005 named Sakha  Gold 
B.V. and was renamed to a public liability company Severstal Gold N.V. on July
30, 2009  and  further  to a  limited  liability  company Nord  Gold  N.V.  on 
September 29, 2010.



The Company's registered  office is  Luna ArenA, Herikerbergweg  238, 1101  CM 
Amsterdam Zuidoost, the Netherlands.



As at  December  31,  2011  the Company's  ultimate  parent  company  was  JSC 
Severstal, an integrated steel and mining  company with key assets in  Russia, 
the US and Europe  (the "Severstal Group"). The  immediate parent company  was 
Lybica Holding B.V.,  Severstal Group's 100%  owned subsidiary. The  Company's 
ultimate controlling party was Alexey Mordashov.



In November  2011,  the Severstal  Group  decided to  spin  off the  Group  by 
exchange of 100% shares  ofNord Gold N.V. for  JSC Severstal shares and  GDRs 
based on the  relative fair  values. In  January 2012,  the Company  completed 
exchange of  10.6 %  of  its shares  with non-controlling  shareholders  which 
became traded on the London Stock Exchange  in the form of GDRs. The  exchange 
between Lybica  Holding B.V.  and  Rayglow Limited,  an entity  controlled  by 
Alexey Mordashov, of JSC Severstal shares  for 89.4% of the Company's  shares 
("Shares") was completed  in March  2012 and those  Shares were  then sold  to 
Canway Holding B.V., a company controlled by Alexey Mordashov who remains  the 
ultimate controlling party.



The Group's principal activity is the  extraction, refining and sale of  gold. 
Mining and  processing facilities  are located  in Burkina  Faso, Guinea,  the 
Republic of  Buryatia,  the Republic  of  Yakutia,  the Amur  region  and  the 
Transbaikal region of the Russian Federation, Kazakhstan.



2.  Basis  for  preparation  of  the  consolidated  interim  condensed 
financial statements



Statement of compliance



These consolidated interim condensed  financial statements have been  prepared 
in accordance with IAS 34 Interim  Financial Reporting and do not include  all 
of the information required for full annual financial statements.



The Board of  Directors is responsible  for the preparation  of the  condensed 
consolidated  half-year  financial  statements  for  the  nine  months   ended 
September 30,  2012,  in  accordance with  International  Financial  Reporting 
Standards (IFRS) as adopted by the  European Union. The responsibility of  the 
Board of  Directors includes  selecting  and applying  appropriate  accounting 
policies  and  making  accounting  estimates   that  are  reasonable  in   the 
circumstances.



Accounting policies



The accounting policies  applied by  the Group in  these consolidated  interim 
condensed financial statements are the same  as those applied by the Group  in 
its consolidated financial statements as at  and for the year ended  December 
31, 2011,  except  that the  Group  has adopted  those  new/revised  standards 
mandatory for  financial annual  periods  beginning on  January 1,  2012.  The 
adoption of  the pronouncements  did  not have  a  significant impact  on  the 
Group's condensed consolidated interim financial statements.



Since April  2012,  the  Group  has  held  derivative  financial  instruments. 
Derivative financial instruments are initially recognized at fair value on the
date a derivative contract is entered into and are subsequently re-measured at
their fair  value.  The fair  value  of derivative  financial  instruments  is 
classified as a non-current asset or long-term debt if the remaining  maturity 
of the derivative financial instrument is more than 12 months and as a current
asset or  liability if  the  remaining maturity  of the  derivative  financial 
instrument is less than 12 months after the balance sheet date.



The method of recognizing  the resulting gain or  loss depends on whether  the 
derivative is designated as a hedging instrument and if so, the nature of  the 
item being hedged.  The Group designates  certain derivatives as  hedges of  a 
particular risk associated with a recognized liability (cash flow hedge).



The Group  documents at  the  inception of  the transaction  the  relationship 
between hedging instruments and hedged items,  as well as its risk  management 
objectives and strategy for undertaking various hedge transactions. The  Group 
also documents  its assessment,  both at  hedge inception  and on  an  ongoing 
basis, of whether the  derivatives that are used  in hedging transactions  are 
highly effective in offsetting changes in fair values or cash flows of  hedged 
items. The  ineffective part  is recognized  immediately in  the statement  of 
income. If a hedging relationship  is terminated and the derivative  financial 
instrument is not sold, future changes in its fair value are recognized in the
statement of income.



The effective  part of  changes in  the  fair value  of derivatives  that  are 
designated and qualified  as cash flow  hedges are recognized  in equity.  The 
gain or loss  relating to  the ineffective part  is recognized  in the  income 
statement within finance income  or costs. Amounts  accumulated in equity  are 
reclassified to the statement  of income in the  same periods the hedged  item 
affects profit or loss.  The gain or  loss relating to  the effective part  of 
derivate financial instruments  is recognized in  the income statement  within 
the line where the result from the hedged transaction is recognized.



When a hedging instrument matures or is sold, or when a hedge no longer  meets 
the criteria for  hedge accounting, any  cumulative gain or  loss existing  in 
equity at  that time  remains in  equity  and is  recognized when  the  hedged 
transaction is ultimately recognized  in the income  statement. When a  hedged 
transaction is no longer expected to  occur, the cumulative gain or loss  that 
was reported in equity is transferred to the income statement.



Critical accounting judgements, estimates and assumptions



The  preparation  of  consolidated  interim  condensed  financial   statements 
requires management to make judgements, estimates and assumptions that  affect 
the application of accounting policies and the reported amounts of assets  and 
liabilities,  income   and   expense.   Actual   results   may   differ   from 
theseestimates.



In preparing these  consolidated interim condensed  financial statements,  the 
significant judgements made by management  in applying the Group's  accounting 
policies and the key sources of estimation uncertainty were the same as  those 
that applied to the consolidated financial  statements as at and for the  year 
ended 31December 2011 except described below.



During 2012 the Group revised useful lives of certain mineral rights following
an updated independent report on mineral reserves and resources valuation. The
effect of the change  in accounting estimate  on these condensed  consolidated 
interim financial statements was an increase in depreciation expense in amount
of US$ 9.6 million.



Effective April 1, 2012 the Company changed its functional currency from  Euro 
to US dollars. The presentation currency for the Group remains US dollars. The
change in functional  currency is  appropriate based  on the  fact that  since 
April 2012 most of the Company's  investing and financing activities and  cash 
flows are  denominated in  US  dollars while  the  impact of  the  operational 
activities on the Company's  financial position remains insignificant.  Having 
considered the aggregated effect of all the factors management concluded  that 
the Company's  functional  currency  had changed  to  US  dollars.  Management 
believes that  this  change  more clearly  reflects  the  Company's  financial 
position and significantly reduces its  exposure to currency risk. The  change 
in functional currency  has been  accounted for prospectively  since April  1, 
2012. The Company will no longer have currency exchange effects deriving  from 
USD denominated monetary assets  and liabilities. Conversely, monetary  assets 
and liabilities denominated in other currencies than USD may now generate such
currency effects. As the presentation currency  of the Group is US dollar  the 
change of the  Company's functional currency  from Euro to  US dollars has  no 
impact on the Group's equity and comparative information for previous periods.



Financial risk management



The Group's risk management policies  are established to identify and  analyse 
the risks faced by the Group, to set appropriate risk limits and controls, and
to monitor risks and adhere

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