9th MINING AND MINERAL EXPLORATION FORUM
Managing Mines During the Downturn
1-3 OCTOBER 2013, MOSCOW, RADISSON SLAVYANSKAYA HOTEL
Nikolai Zelenski has led Nordgold’s management team since the company’s inception in 2007. Previously, he worked for the Russian steel company Severstal and was head of Severstal Resources’ gold division, which subsequently became Nordgold. Earlier, Nikolai covered the mining sector at McKinsey & Company.
Nikolai holds a Master of Technical Sciences degree from St. Petersburg State Technical University, a Ph.D. in Molecular Genetics from the University of Texas, and an MBA from Vanderbilt University.
PLENARY SESSION 2
Nordgold’s updated priorities in a disciplined investment environment
The decline of the gold price since the beginning of the year by more than 20% has forced mining companies to revise their strategy, reduce costs and even freeze the development of projects. Nordgold continues to implement its strategy in a disciplined investment environment. The company is focused on driving performance at its existing assets, maximising the potential of the new Bissa mine and developing the Gross project, the full feasibility study of which is expected in the end of 2013. The company's strategy also includes development of four advanced exploration projects and a diverse portfolio of early exploration projects and licenses in Russia, Kazakhstan, Burkina Faso and Guinea. A combination of our flexible capex, reduction of general and administrative expenses, improved operational efficiency, as well as the on-going implementation of Business System of Nordgold are key to ensuring we remain focused on driving down Company costs. The 2013 сapex budget has been reduced due to lower spending on exploration and at the Gross project. At the same time, the reduction of investment at Gross will have minimal effect on the overall project. Nordgold’s exploration budget is also very flexible; reduction of the budget would only affect the growth potential of reserves and resources, while the Company has secure gold reserves for the next 13 years.