Nord Gold NV, Russian billionaire Alexey Mordashov’s producer of the metal, swung to a loss in the second quarter as financing and production costs increased.
The net loss was $3.4 million after a $26 million profit a year before, Nord Gold said today in a report on its website. Sales slid 12 percent to $264.7 million as production fell.
Nord Gold cut output 17 percent to 165,300 troy ounces, it said. Costs per ounce grew 20 percent to $863, led by West African projects. Finance costs more than doubled to $42 million as interest was repaid to OAO Severstal. Nord Gold reiterated a lower full-year output target of 720,000 to 770,000 ounces.
The company may cut its medium-term production targets in the second half, hurting 2013 earnings, Nikolay Sosnovsky, an analyst at VTB Capital, wrote yesterday in a note to clients.