London, England — 10 August 2012 – Driven by strong contributions from all its operations, Randgold Resources posted a 41% increase in profit to US$245.9 million for the six months to 30June, boosting basic earnings per share for the half-year by 32% to US$2.25. Profit for the second quarter of US$141.9 million was up 36% on the previous quarter.
A results statement for the first half of 2012 released here said that with a record performance from Randgold’s flagship Loulo-Gounkoto complex, production for the quarter had increased by 27% to 210,534oz against the previous quarter’s 165,443oz.
Production for the half-year was also up 16% at 375,977oz (six months to June 2011: 324,114 oz). While total cash cost per ounce of US$723 for the six months was up 6% year on year, reflecting the higher cost of production at Tongon in the first six months, total cash costs for the quarter were US$703/oz, down 6% from the previous quarter, supporting a trend to lower cash costs on the back of higher grades and increased production, the statement added.
Chief executive Mark Bristow said that in a solid operational quarter Randgold had also continued to advance the development of the giant Kibali gold project in the Democratic Republic of Congo.
“The most outstanding achievement of the quarter was that of the Loulo-Gounkoto complex, which set new records in profit, production and underground development while continuing to reduce costs and reaching one million lost-time injury-free hours,” he added.
Despite the political crisis in Mali during the quarter, the complex’s production reached a new high of 132,481oz, with the plant processing a record 1Mt and the Yalea underground development stepping up to 1,000m per month, another record. Set to deliver 500,000oz in 2012, the complex is now poised to take its place as one of the largest gold producers in Africa,” Bristow declared.
Randgold’s Tongon mine in Côte d’Ivoire also showed a steady increase in production after successfully negotiating the tricky transitional zone of the ore body, with output rising from
47,141oz to 56,432oz quarter on quarter. The plant is scheduled to reach its designed sulphide processing capacity during the third quarter.
“While we have a very full operational and developmental load at present, our focus still remains fixed on the future,” Bristow said. “Our capital projects team is well on the way to building our next mine and the exploration teams continue to feed new prospects into our project pipeline, working to ensure that we have the organic resources to maintain our growth momentum,” he added.
“We are also looking at the opportunities that are being created by the current dynamics of the gold mining industry, particularly in the junior sector. In any event, we are well positioned not just to deliver but to keep on delivering,” Bristow concluded.
Caption, Pic 1: Part of Randgold’s record-breaking flagship Loulo-Gounkoto complex in Mali.
Source: Randgold Resources. For more information, click here.