Randgold warns Congo on changes
Randgold Resources, the London-listed gold miner, would launch international arbitration to enforce its rights in the Democratic Republic of Congo if there was no further discussion with the industry about “ill-considered” mining code revisions, CEO Mark Bristow said on Monday.
Randgold Resources, the London-listed gold miner, would launch international arbitration to enforce its rights in the Democratic Republic of Congo (DRC) if there was no further discussion with the industry about “ill-considered” mining code revisions, CEO Mark Bristow said on Monday.
Besides Randgold Resources, which is a joint shareholder with AngloGold Ashanti in the Kibali gold mine in the DRC, other multinational miners affected by the changes include Glencore and Ivanhoe Mines. The changes to the code include revoking a 10-year “stability clause”, which guaranteed legal certainty for existing investors.
Randgold Resources doubled its dividend for the year to December to $2 a share after increasing gold production 5% to 1.32-million ounces and cutting cash costs 3% to $620/oz. The value of gold sold rose 7% to $1.65bn. At end-December it had $720m cash and no debt.
Profit on mining at Kibali fell slightly to $129.5m from $130.9m in 2017, as costs of production increased while volumes were 2% higher. The mine produced 596,225oz, up from 585,946oz in 2016, at a cash cost of $773/oz.
The Loulo-Gounkouto complex in Mali delivered a strong performance, exceeding production guidance. It delivered 3% more gold at 730,372/oz and reduced cash costs by 4%.
Bristow said Randgold Resources expected to produce between 1.3-million and 1.35million ounces of gold in 2018, weighted towards the second half, at a cash cost of between $590 and $640/oz. It expected to spend between $50m and $60m on exploration and corporate expenses.