RANDGOLD FIRES ON ALL CYLINDERS TO DELIVER ANOTHER ROBUST PERFORMANCE
Driven by strong contributions from all its operations, Randgold Resources posted a 41% increase in profit to US$245.9 million for the six months to June, boosting basic earnings per share for the half-year by 32% to US$2.25. Profit for the second quarter of US$141.9 million was up 36% on the previous quarter.
With a record performance from Randgold's flagship Loulo-Gounkoto complex, production for the quarter increased by 27% to 210 534 ounces against the previous quarter's 165 443 ounces. Production for the half-year was also up 16% at 375 977 ounces (six months to June 2011: 324 114 ounces). While total cash cost per ounce of US$723 for the six months was up 6% year on year, reflecting the higher cost of production at Tongon in the first six months, total cash costs for the quarter were US$703/oz, down 6% from the previous quarter, supporting a trend to lower cash costs on the back of higher grades and increased production.
Chief executive Mark Bristow said in a solid operational quarter Randgold had also continued to advance the development of the giant Kibali gold project in the Democratic Republic of Congo. Construction of the processing plant and the first hydropower station as well as open pit mining and underground development were now underway and on track for first production towards the end of next year. In another significant development, the Gounkoto mine repaid all its capital in its first year of production and declared a maiden dividend of US$65.1 million.
"The most outstanding achievement of the quarter, however, was that of the Loulo-Gounkoto complex, which set new records in profit, production and underground development while continuing to reduce costs and reaching one million Lost-Time Injury-Free hours. Despite the political crisis in Mali during the quarter, the complex's production reached a new high of 132 481 ounces, with the plant processing a record one million tonnes and the Yalea underground development stepping up to 1 000 metres per month, another record. Set to deliver 500 000 ounces in 2012, the complex is now poised to take its place as one of the largest gold producers in Africa," he said.
Randgold's Tongon mine in Côte d'Ivoire also showed a steady increase in production after successfully negotiating the tricky transitional zone of the orebody. Ore treated rose from 756 kilo-tonnes to 853 kilo-tonnes quarter on quarter, with production rising from 47 141 ounces to 56 432 ounces quarter on quarter. The plant is scheduled to reach its designed sulphide processing capacity during the third quarter.
"While we have a very full operational and developmental load at present, our focus still remains fixed on the future," Bristow said. "Our capital projects team is well on the way to building our next mine and the exploration teams continue to feed new prospects into our project pipeline, working to ensure that we have the organic resources to maintain our growth momentum. We are also looking at the opportunities that are being created by the current dynamics of the gold mining industry, particularly in the junior sector. In any event, we are well positioned not just to deliver but to keep on delivering."
