London, England — MININGREVIEW.COM — 06 May 2010 – West African-focused gold mining and exploration company Randgold Resources Limited has posted a an 83% jump in first-quarter net profit, and says it has started mining at its Tongon project in the Ivory Coast.
The company’s first quarter results statement released here said that net profit had surged to US$23.9 million (R179 million) from US$13.1 million (R98 million) in the year-earlier period, as attributable production had climbed 2% to 112 663 ounces.
It went on to point out that profit had dropped 38% from the previous quarter because of lower production from its flagship Loulo mine in Mali, and plant breakdowns at the Morila mine.
“The most critical challenge we face over the next three quarters is delivering on our production and profit forecasts under very demanding conditions,” said chief executive Mark Bristow.
“Looking further ahead, we remain confident about achieving our goal of producing 1.2 million ounces by 2014.”
Randgold’s total cash costs also jumped to US$617 an ounce from US$461 in the year-earlier quarter.
In March, Randgold announced a 75% increase in reserve estimates, boosted by the acquisition of Kibali and discoveries at its Gounkoto and Massawa projects.