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Interim Results

Randgold Resources sustains strong performance record

03 August 2017 07:13

Randgold Resources sustained its strong performance record with second-quarter results that have positioned it well to achieve its guidance for 2017.

Results for the quarter and the half-year to June showed continuing growth in production and profit and a further reduction in total cash cost per ounce.

The company's cash pile rose over the first six months to $572.8 million despite the payment of the 2016 dividend of $94 million.

The Q2 profit of $102.8 million was up 21% on the previous quarter and the half-year profit of $187.7 million was up 53% on the corresponding period in 2016.

Production of 341,316 ounces for the quarter and 663,786 ounces for the half-year were 6% and 16% higher respectively, while total cash cost per ounce of $572 for the quarter and $595 for the half-year were down 8% and 13%.

Earnings per share of $0.89 for the quarter and $1.64 for the half-year were up 20% and 49%.

Chief executive Mark Bristow said the second quarter was a good one for Randgold, both operationally and on the exploration and new business front.

The flagship Loulo-Gounkoto complex delivered another robust performance, Tongon increased its production and Kibali finalised preparations for its underground ramp-up later this year while significantly improving its plant stability and recoveries.

Morila's numbers were in line with plan and it completed the permitting process for mining the Domba satellite deposit.

"At this stage the outlook is positive, and Randgold is trending towards the top end of its 2017 production guidance range at a total cash cost below $600 per ounce," Bristow said.

Brownfields and greenfields exploration again made significant advances, with the former continuing to extend the known reserves at Randgold's mines and projects and the latter hunting for the company's next world-class discovery within its extensive target portfolio.

"Our greenfields work continued to focus on identifying major structures capable of hosting multi-million ounce orebodies.

"A number of these structures have already been defined across the portfolio and we are making significant progress in prioritising targets that could meet our criteria.

"I believe we are well on our way to achieving our goal of defining three new projects that pass our investment filters within five years," Bristow said.

He said the extension drilling at Loulo, Gounkoto and Kibali should replace and, in some cases, add to the group's reserve base at similar grades.

On the greenfield front, Bristow highlighted the progress at the Fonondara and Gbongogo targets in Cote d'Ivoire, as well as the potential for the Saba structure, north of Gara, and the Domain Boundary structure, south of Gounkoto, to become advanced drill targets.

Latest results from the Sofia satellite deposit have also confirmed its potential to increase in size and add to the Massawa project in Senegal, he said. A feasibility study on the project is currently underway.

Story provided by StockMarketWire.com

Related Company: RRS

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