New projects for Randgold after profit boost

RANDGOLD Resources was on track to deliver new projects in the next five years, the London-listed gold producer, said yesterday as it delivered a profit boost in the quarter to June.

Randgold chief executiv Mark Bristow said he had just completed his annual exploration review, revisiting all Randgold’s projects with a team of senior exploration, resource and evaluation executives.

“I’m very encouraged by what I’ve seen. Our resource triangle is well stocked and a number of targets are already at the advanced evaluation and significant resource definition stages. We’re well-positioned to deliver on our objective of defining three new projects in the next five years,” he said.

Profit was 21 percent higher in the quarter to June to $102.8 million (R1.36 billion) on the previous quarter and the half-year profit of $187.7m was up 53 percent on the corresponding period in 2016, the company said yesterday.

Earnings a share of $0.89 for the quarter and $1.64 for the half-year were up 20 percent and 49 percent, respectively.

Net cash of $572.8m was up 11 percent during the first 6 months of the year, after paying $94m annual dividends.

Bristow said the second quarter had been a good one for Randgold, both operationally and on the exploration and new business front, and the company’s outlook was positive.

“Randgold is trending towards the top end of its 2017 production guidance range at a total cash cost below $600 per ounce,” he added.

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

Randgold, which has mines in Mali and Ivory Coast, 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 their next worldclass discovery.