Randgold Resources
chief executive
Mark Bristow
Toronto, Canada —08 March 2013 – International gold miner Randgold Resources Limited, which operates several mines in west and central Africa, sees more upside than downside for gold prices, as central banks in emerging markets buy the precious metal and producers limit new output.

Chief executive Mark Bristow told Bloomberg News in an interview here that the gold market was showing signs of inelasticity, supply was tight and production costs were high. Gold miners, which had underperformed the metal for the last six years, were under pressure to improve returns, and that would probably lead to less gold production globally, he said.

“I still believe there’s more upside than downside in the gold price, particularly if the industry is going to be driven to make those hard decisions,” Bristow continued. “I don’t think there’s much room to go below US$1,500 this year and I still believe there’s every potential for it to go US$200 above that.”

Gold for delivery in April climbed 0.4% to US$1,581.30/oz. in New York. The metal has dropped 5.7% this year following 12 consecutive annual gains.

Bristow said he was looking for opportunities to sign joint-venture agreements with exploration companies which were struggling to access finance. Randgold signed an agreement in December with Kilo Goldmines Limited, a company with licenses in the Democratic Republic of Congo (DRC), and will fund exploration on Kilo’s prospects in return for incremental ownership stakes based on certain milestones.

“With the tightness in the junior market we are expecting to do more of these Kilo-type earn-in joint ventures,” Bristow said.

Source: Bloomberg News. For more information, click here.