Concurrently, Moody's upgraded the senior unsecured
The outlook on both entities remains stable.
The decision to upgrade Nordgold's rating to Ba1 reflects the Company's track record of deleveraging, operational and geographical diversification, with nine active mines, good reserve base, which is dominated by open-pit mines, competitive operating costs, resulting in a Moody's-adjusted EBITDA margin of above 40% on a sustained basis and history of organic growth and good corporate governance.
The upgraded ratings are also based on Moody's expectations that Nordgold will continue to deliver a strong operating performance, which will allow it to maintain modest levels of leverage under various gold price scenarios.
This takes into account the Company's dividend policy, which anticipates relatively high dividend distributions starting from 2022 of 50% of the Company's pre-dividend free cash flows, adjusted by the amount of the development capital spending, provided that the Company's reported net debt/EBITDA is below 1.5x. Nordgold intends to pay the dividend of about
Contact:
Olga Ulyeva
Email: olga.ulyeva@nordgold.com
About Nordgold
Nordgold is an internationally diversified one million ounce gold producer with about 7,800 people operating a portfolio of nine mines (in
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