Randgold Resources- 1st Quarter Results and update
02.05.2013 | Marketwired
LONDON -- (Marketwired) -- 05/02/13 -- Randgold Resources (LSE: RRS) (NASDAQ: GOLD)RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
NASDAQ Trading Symbol: GOLD
OPTIMISED BUSINESS PLAN KEEPS RANDGOLD'S GROWTH STRATEGY ON TRACK
London, 2 May 2013 - A planned decrease in the grade mined at Gounkoto and a reduction in recoveries due to copper-rich ore from the Yalea South pit pushback had a greater than expected impact on the Loulo-Gounkoto complex's performance in the first quarter of the year, but Randgold Resources says its growth strategy remains intact.
The company says it reacted promptly to the recent drop in the gold price, and has reviewed all its operations and projects, with a focus on managing cashflows. At Loulo-Gounkoto, the review has resulted in a change in the mining plan, which reduces the expenditure on capital and operational development of the underground mines, as well as the build-up of lower grade stockpiles, while efficiently feeding the ore mined to the plant. The net effect is a small reduction in grade, and consequently the complex has reduced its anticipated production for the year from 590 000 to 560 000 ounces. Capital expenditure and working capital tied up in stockpiles have each been reduced by about US$20 million.
Loulo-Gounkoto's reduced contribution and higher costs, a larger than usual amount of gold unsold at the end of the quarter and the lower gold price were reflected in Randgold's Q1 results, announced today. Production of 199 013 ounces was down 7% quarter on quarter and profit dropped by 43% to US$81.6 million.
RANDGOLD ENQUIRIES:
Chief Executive Financial Director Investor & Media Relations
Mark Bristow Graham Shuttleworth Kathy du Plessis
+44 788 071 1386 +44 1534 735 333 +44 20 7557 7738
+44 779 775 2288 +44 779 771 1338 Email: randgold@dpapr.com
Website: www.randgoldresources.com
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