New projects for Rand­gold af­ter profit boost

The Star Early Edition - - COMPANIES - Di­neo Faku

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.

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