HomeGoldRandgold 'done with acquisitions'

Randgold ‘done with acquisitions’

The stockpile at
Randgold’s Loulo
project in Mali
Denver, United States — MININGREVIEW.COM — 17 September 2009 – International gold mining and exploration company Randgold Resources Limited is not interested in mining low-grade gold ore or increasing exploration spending, even though gold has risen above US$1 000 an ounce.

“Randgold, “’ whose operations are solely based on African countries including Mali and Senegal “’ is done with acquisitions for the time being,” CEO Mark Bristow told Reuters here in an interview on the sidelines of the Denver Gold Forum.

Asked if Randgold will boost its exploration budget due to gold’s rally above US$1 000 an ounce, Bristow said the gold mining industry as a whole did not usually follow through with a long-term strategy.

“Exploration is something you shouldn’t use like an accelerator. You should not have to step on it when the gold price is up, and take your foot off the accelerator when the gold price is down.

When you see some of the bigger mining companies, in their desire to grow, accept lower-grade, high-volume assets, that changes your whole risk profile,” he added.

“If the price of gold comes down, companies that venture into lower-quality gold mines do not have the same flexibility as companies working with higher-grade gold ore,” Bristow said.

“We do not manipulate our exploration budget according to the market sentiment. We change our exploration budget according to the opportunity and qualities of our exploration portfolios,” he added.

As for the price of gold, Bristow stood by his forecast that gold would hit US$1 200 an ounce by the end of the year. “The gold price is in a very good place at the moment. We have survived at these (high) levels despite deflationary pressures that the world is seeing,” he said.

In July, Randgold and top African miner AngloGold Ashanti teamed up to buy Moto Goldmines, which owns a project in the mineral-rich Democratic Republic of Congo (DRC).

“There is no doubt in mind that the DRC represents a new game for us in terms of managing risk,” Bristow continued. The key to manage geopolitical risk is to build a strong relationship with the government.