Load in the pit at
Randgold’s Morila mine
 
London, England — MININGREVIEW.COM — 28 July 2009 – International gold mining and exploration company Randgold Resources Limited has reported a 6.4% fall in second-quarter profit, and has announced a share offering to raise about US$330 million (R2.6 billion) for its Gounkoto and Massawa projects in Senegal and Mali.
 
Releasing its half-year results here, the West Africa-focused company said some of the proceeds from the offering of 5 million shares could also be used to finance a joint US$501 million (R4 billion) bid with AngloGold Ashanti for Moto Goldmines.

Randgold “’ which is listed in London and has a market capitalisation of £3.1 billion pounds (almost R40 billion) “’ also maintained its production target for the year and said it was on course for longer-term goals.

“We’re on track to get Loulo up to 400 000 ounces by the end of next year, and we’re heading for production of 700 000 ounces by end of 2011,” chief executive Mark Bristow told Reuters.

For the second quarter to end-June, gold production rose 10% from the previous quarter to 121 685 ounces, thanks to higher ore grades and throughput at its Loulo complex in Mali.

But the complex experienced poorer than expected recovery “’ down to 78 % from 87% in the first quarter “’ as it had to process high grade material from the Yalea mine.

Randgold posted a second-quarter net profit of US$18.9 million (R150 million), down from the US$20.2 million (R160 million) reported for the same quarter last year, but up from US$13 million (R100 million) in the first quarter.

Randgold also gave an update on drilling results from the Gounkoto find, showing high grades of over 9 g/t.

“We manage our business at US$650/oz., and I still believe there’s lots of upside,” he said, adding that he expected the gold price to stay above US$900/oz for a couple of years.

The high gold prices meant it was a good time to ask shareholders for money and carry out a share offering, he added.