Ready for another plunge

RANDGOLD Resources, the best-performing gold mining stock in the past decade, is getting ready for another plunge in prices. “We are already starting to see what we would need to restructure should the gold price continue to go down,” chief executive Mark Bristow said in London yesterday. “The industry would be fried at $800 (R10 208). It’s a very real possibility.” The company would write down the value of assets if gold fell below $1 000 an ounce, and cut production with prices below $800. It is making plans to remain cash-flow positive in that scenario, Bristow said. Randgold has so far avoided the worst of the turmoil that has wiped out profits for some gold miners and led producers to reduce asset values and raise cash. The industry is fighting to lower costs and debt levels. – Bloomberg