Jersey, Channel Islands — MININGREVIEW.COM — 31 July 2008 – International gold mining and exploration company Randgold Resources has almost doubled its net profit for the six months to 30 June 2008 to US$38.4 million (over R300 million), compared to US$19.6 million(R156 million) in the first half of 2007, despite the negative impact of a weakening dollar and rising input costs.
Releasing its results here today, the company added that net profit of US$20.2 million (R160 million) for the second quarter was up 11% on the previous quarter, and a significant 196% above the corresponding quarter in 2007.
It said the profit increase had been attributable to a higher received gold price, as well as higher production at the Loulo gold mine in Mali, and at the Morila joint venture in Mali, where Randgold took over management control earlier this year. Production at Loulo had increased by 11% quarter on quarter and at Morila by 13%. While total cash costs at both operations had risen, unit costs had been reasonably well contained through increased production and an intensified focus on unit consumption measurements.
In another major development, the company said the latest drilling results from its recently announced Massawa project in Senegal, had confirmed that this was a major discovery. Continued diamond drilling had so far revealed significant grades and widths within two zones, totalling 3.1 km out of the 6.5 km of strike tested to date. “Results also confirmed good continuity in geology and gold mineralisation which supports our view that Massawa is potentially a multi-million ounce project,” CEO Mark Bristow said.
At the Tongon project in Côte d’Ivoire – currently in the early stages of development as the company’s third mine – continuing infill drilling and follow-up optimisation studies completed during the quarter had resulted in a further increase of 26% in the reserve, which now stands at more than 3 million oz.
Bristow underlined the fact that the company had increased its profits – at a time when cost pressures on the mining industry were intensifying. Henoted that the company’s strong organic growth prospects continued to be enhanced by the success of its exploration programmes, currently operating in six African countries.
“In addition to Massawa, our portfolio includes a number of other advanced targets, notably Kiaka in Burkina Faso, Tiasso in the Côte d’Ivoire and Faraba near Loulo. These also provide the company with an accurate benchmark against which to measure the new business opportunities it continues to evaluate at corporate, project and joint venture levels,” he concluded.