Randgold Resources RRS 3rd Quarter Results

  Randgold Resources (RRS) - 3rd Quarter Results

RNS Number : 4551Q
Randgold Resources Ld
07 November 2012

Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
NASDAQ Trading Symbol: GOLD


London, 7  November 2012  - Substantial  progress at  the Kibali  gold  mine 
development project and Randgold's flagship  Loulo complex was offset by  grid 
power supply  problems  at the  Tongon  mine  and lower  grades  processed  at 
Gounkoto, as Randgold Resources' third quarter results held steady but did not
match its record second quarter performance.

Q3 profit of US$121.3 million was down 15% on the prior quarter, primarily  on 
the back of lower sales, but in line with the corresponding quarter in  2011. 
Production  was  204475ounces  of  gold  against  Q2's  210534ounces   and 
182362ounces in Q3 of 2011, while the  total cash cost per ounce was  US$737 
(Q2: US$703/Q3 2011: US$747). Ounces sold dropped by 10% quarter on  quarter, 
affected by the timing of gold shipments at quarter end being disrupted by the
annual stock take at the refinery.

Highlight of the quarter was the strong improvement at Loulo, which  increased 
production by 78% and reduced total cash  cost per ounce by 8%. Tonnes  mined 
and processed were mostly from Loulo's two underground mines, Yalea and  Gara, 
which are now  beginning to  deliver their  full potential.  Both mines  also 
achieved a steady rise in stoping and development rates.

Relative  to  Loulo's  improved  delivery,  Gounkoto's  contribution  to   the 
complex's results was down  as forecast, however  grades processed were  lower 
than planned due  to less  ore being mined  and more  medium grade  stockpiled 
material being fed to  make up for increased  plant throughput. Meanwhile,  a 
geotechnical review has  confirmed the  potential for an  underground mine  at 
Gounkoto, where an  underground resource  of more than  1millionounces at  a 
grade  in  excess  of  5g/t  has  been  identified.  Infill  drilling  for  a 
prefeasibility study, due for completion early in 2013, is underway.

Kibali's development remained on track for first gold production by the end of
2013. All key contracts have now been agreed and the mine's costing  schedule 
has been finalised.  While open  pit mining  has already  started, the  plant 
foundations are being readied to receive  the two giant mills currently  being 
trucked to the site from the port of Mombasa. The site clearing programme  is 
also on schedule, with more than  1000families already resettled in the  new 
model village of Kokiza.

Tongon suffered from frequent outages in its national grid power supply, which
continued to impact negatively on plant availability and recovery and hence on
production and costs. Since the mine was connected to the grid last December,
the erratic power supply has cost  it some 50000ounces in lost  production. 
While below plan,  production of 56381ounces  was in line  with that of  the 
prior quarter. Steps being  taken to stabilise the  power supply include  the 
installation of a new  capacitor bank and five  additional generator sets,  as 
well as a reconfiguration of the power house feeder arrangement.

In Senegal, Massawa is one of  the largest undeveloped orebodies in Africa  at 
3millionounces. Exploration continues to find additional ounces as well  as 
to improve  Randgold's understanding  of this  complex deposit.  Pilot  plant 
testwork  to  determine  the  project's  optimal  operational  parameters   is 
scheduled for  next  year.  Randgold  is currently  in  discussion  with  the 
Senegalese government about the possibility of securing a hydropower supply.

Chief executive Mark Bristow  described the third-quarter  results as a  mixed 
bag, but with the good far outweighing the bad. "The challenges we faced  are 
to be expected when you develop and  run mines in remote parts of Africa  and, 
as our record shows,  we're more than capable  of managing them. They  should 
not cloud  the  real  achievements  of  the  quarter,  particularly  the  fine 
performance by Loulo's underground mines and the rapid progress we continue to
make at Kibali. Production  and costs for the  final quarter are forecast  to 
again show significant improvements" he said.


Chief Executive  Financial Director  Investor & Media Relations
Mark Bristow     Graham Shuttleworth Kathy du Plessis
+447880711386 +441534735333    +442075577738
+447797752288 +447797711338    Email:randgoldresources@dpapr.com

Website: www.randgoldresources.com




§ Q3 production up 12% on Q3 2011, marginally lower than record Q2 2012

§ Profits for the period in line with Q3 2011 and down on Q2 2012

§ Cash and gold on hand ahead of prior quarter despite continued investment in
capital projects

§ Morila continues dividend payments and Gounkoto declares second dividend

§ Loulo contributes materially to complex performance as underground ore
production increases by 50%

§ Tongon mill throughput improves; power challenges receive attention

§ Kibali on track as key contracts are concluded and mills arrive in Africa

§ Preliminary review confirms underground mine potential at Gounkoto

§ Loulo achieves OHSAS 18001 safety accreditation; Tongon earns ISO 14001
environmental rating

§ Exploration team prepares for next field season


Randgold Resources Limited ('Randgold') had 92.1 million shares in issue as at
                              30 September 2012.






                                     Quarter Quarter Quarter 9 months 9 months
                                       ended   ended   ended    ended    ended
                                      30 Sep  30 Jun  30 Sep   30 Sep   30 Sep
US$000                                  2012    2012    2011     2012     2011
Gold sales*                          319 869 345 359 309 610  937 007  817 775
Total cash costs*                    143 607 151 623 135 147  414 849  373 987
Profit from mining activity*         176 262 193 736 174 463  522 158  443 788
Exploration and corporate
expenditure                            8 766  14 292   9 298   33 919   31 810
Profit for the period                121 349 141 875 122 865  367 232  297 229
Profit attributable to equity
shareholders                         103 341 117 463 106 779  310 244  261 583
Net cash generated from operations   126 975 157 948 124 540  360 575  414 492
Cash and cash equivalents            443 511 452 881 432 837  443 511  432 837
Gold on hand at period end            33 025   7 965   8 748   33 025    8 748
Group production (oz)^+              204 475 210 534 182 362  580 452  506 476
Group sales (oz)^+                   194 969 215 825 181 017  570 015  530 490
Group total cash cost per ounce*^+
(US$)                                    737     703     747      728      705
Group cash operating cost per
ounce*^+ (US$)                           654     618     666      644      634
Basic earnings per share (US$)          1.12    1.28    1.17     3.38     2.87

* Refer to explanation of non-GAAP measures provided.

+ Randgold  consolidates 100%  of Loulo,  Gounkoto and  Tongon and  40%  of 

These results have not been reviewed nor audited.




Revenues for the quarter decreased by 7% from Q2, reflecting the 10%  decrease 
in ounces  sold quarter  on quarter.  The  drop in  ounces sold  was  largely 
attributable to the timing of gold shipments at quarter end resulting from the
annual stock take at the refinery which prevented shipments over this  period, 
as well as a drop in the  average grade of ore processed. This was  partially 
compensated by a 3% increase in the average gold price received of US$1641/oz
compared to US$1600/oz achieved in the prior quarter and a rise in ore tonnes
processed. The group had 18595 ounces in the vault at quarter end (valued at
US$33million). Had these ounces been sold  at quarter end, sales would  have 
increased 2% quarter  on quarter.  Compared to the  corresponding quarter  of 
2011, revenue rose by 3% due to an  8% increase in the ounces sold quarter  on 
quarter, partially offset by a 2% drop in the average gold price received  (Q3 
2011: US$1666/oz).

Total cash costs  of US$143.6million were  down 5% compared  to the  previous 
quarter, reflecting the lower ounces sold. However, total cash cost per ounce
of US$737/oz increased 5% quarter on quarter, primarily due to higher costs at
Gounkoto and Tongon, as a result of lower ore grades and recoveries as well as
increased power costs  at Tongon. Total  cash cost per  ounce improved by  1% 
from the corresponding prior year quarter (Q3 2011: US$747/oz), largely due to
a 12% increase in group production to 204475 ounces, as production ramped  up 
at the Loulo-Gounkoto complex.

Profit from mining decreased by 9% from the June 2012 quarter, however it  was 
up by  1% compared  to the  September 2011  quarter's profit  from mining,  as 
explained above.

Exploration and corporate expenditure was  down 39% from the previous  quarter 
and 6% from  the September  2011 quarter. This  was mainly  due to  decreased 
exploration fieldwork and drilling activity during the quarter, following  the 
rainy season, as well as a saving in general corporate expenditure during  the 

Profit for the quarter  was US$121.3million, down 15%  on the prior  quarter, 
but in line with the corresponding quarter in 2011. However, had the gold  on 
hand been sold at quarter end, profit for the quarter would have increased  by 
US$12.1million. Depreciation increased  37% quarter  on quarter  and by  32% 
from the September 2011 quarter. The increased depreciation charge is due  to 
increased assets brought  into use  at the Loulo-Gounkoto  complex during  the 
quarter following  the on-going  investment  in the  mine, particular  in  the 
underground sections,  as well  as depreciation  related to  ore tonnes  mined 
associated with the Yalea pushback at Loulo.

Other income  of US$5.7  million this  quarter,  as well  as other  income  of 
US$3.3million  in  the   September  2011  quarter   and  other  expenses   of 
US$1.2million in the previous quarter,  mainly relate to operational  foreign 
exchange differences as a result of  settling of invoices in currencies  other 
than US  Dollar,  as  well  as the  translation  of  balances  denominated  in 
currencies such as Rand,  Canadian Dollars and Euro  to the closing US  Dollar 
rate, and reflect the sharp movements in these currencies during the quarter.

Income tax for  the quarter was  up 28% on  the prior quarter  and down by  9% 
compared to the corresponding  quarter of 2011. The  increase from the  prior 
quarter result from an increase in profits at Loulo and decrease in profits at
Gounkoto quarter on quarter, following a corresponding increase in  production 
at Loulo and corresponding drop at Gounkoto. Gounkoto currently benefits from
a corporate tax holiday until June 2013. The decrease from the  corresponding 
quarter of 2011 is  due to a  drop in profits at  Morila. Basic earnings  per 
share were down 13% to 112UScents  for the quarter ended 30 September  2012, 
compared to the June 2012 quarter  (June 2012 quarter: 128UScents) and  down 
4% from the corresponding quarter in 2011 (Sept 2011 quarter: 117UScents).

Gold sales  for the  nine months  ended  30 September  2012 increased  by  15% 
compared to the nine  months ended 30  September 2011. This was  due to a  4% 
increase in the average gold price received to US$1644/oz for the nine months
ended 30 September 2012, as well as a 8% increase in attributable ounces sold.

Profit from mining  for the nine  months ended  30 September 2012  was up  18% 
compared to the prior year's  corresponding period, following the increase  in 
gold sales and production across the group.

Profit for  the  nine  months  ended 30  September  2012  of  US$367.2million 
reflects  an  increase  of   24%  (nine  months   ended  30  September   2011: 
US$297.2million). Basic earnings per share  were up 18% to 338UScents  for 
the nine months ended 30 September 2012 (nine months ended 30 September  2011: 






During the quarter the combined Loulo-Gounkoto complex produced 130109 ounces
of gold (Loulo 68083; Gounkoto 62026),  a 2% drop on the previous  quarter's 
record but in line with plan. The sustained high production reflects  another 
strong operating  performance from  the mine  with a  further 5%  increase  in 
tonnes processed, averaging 383kt per  month over the quarter. The  increased 
throughput offset the lower head grade milled which dropped by 5% to 3.9g/t as
a result of medium grade ore being  fed from the Gounkoto stockpiles, to  make 
up for the lower tonnes mined, and recoveries were slightly down at 90.2%  (Q2 
2012: 91.5%). Total ore mined reduced slightly to 1036kt from 1110kt in the
second quarter.

Total cash cost per ounce increased  by 7% to US$735/oz, reflecting the  lower 
grade ore milled  and slightly lower  recoveries. Gold sold  reduced by  15%, 
largely attributable to the timing of gold shipments at quarter end  resulting 
from the annual stock take at the refinery which prevented shipments over this
period. Consequently  profit  from  mining  activities  dropped  to  US$107.5 
million from US$130.1 million  in the previous quarter.  Gold on hand at  the 
quarter end amounted to US$22.7 million.

In line with the KPIs set out by the mine at the start of the year, the  Loulo 
mine has been recommended for OHSAS 18001 safety certification and  maintained 
its ISO14001 environmental certification.

                                     Quarter Quarter Quarter 9 months 9 months
                                       ended   ended   ended    ended    ended
                                      30 Sep  30 Jun  30 Sep   30 Sep   30 Sep
                                        2012    2012    2011     2012     2011
Tonnes mined (000)                    11 124  12 976   9 612   38 411   26 133
Ore tonnes mined (000)                 1 036   1 110   1 284    3 072    2 862
Tonnes processed (000)                 1 149   1 090     864    3 225    2 706
Head grade milled (g/t)                  3.9     4.1     3.5      3.8      3.0
Recovery (%)                            90.2    91.5    89.0     91.4     87.7
Ounces produced                      130 109 132 481  87 070  359 040  228 858
Ounces sold                          121 332 142 846  88 481  352 660  232 873
Average price received (US$/oz)        1 621   1 596   1 698    1 635    1 539
Cash operating costs* (US$/oz)           639     589     721      630      777
Total cash costs* (US$/oz)               735     685     818      726      866
Gold on hand at period end* (US$000)  22 719       -   3 178   22 719    1 962
Profit from mining activity*
(US$000)                             107 549 130 139  77 859  320 672  156 742
Gold sales* (US$000)                 196 735 227 919 150 242  576 713  358 390

* Refer to explanation of non-GAAP measures provided.


On a standalone basis, Loulo produced  68083 ounces of gold (Q2 2012:  38227 
ounces) at total cash cost per  ounce of US$716/oz (Q2 2012: US$776/oz).  The 
substantial 78% jump in production resulted in  an 8% drop in total cash  cost 
per ounce, following an 84% increase in the tonnes processed at 4.3g/t, almost
the same grade as  the previous quarter (Q2  2012: 4.4g/t). Tonnes mined  and 
processed were  mostly  from the  two  underground mines  where,  once  again, 
another steady increase  in stoping  and development was  achieved during  the 

Three Lost  Time  Injuries  (LTIs)  were recorded  during  the  quarter  which 
represents a LTIFR of 2.08 compared to zero in the previous quarter.  Actions 
steps have been taken to reinforce  safety awareness around the operation,  in 
particular defensive driving and safety training.

                                     Quarter Quarter Quarter 9 months 9 months
                                       ended   ended   ended    ended    ended
                                      30 Sep  30 Jun  30 Sep   30 Sep   30 Sep
                                        2012    2012    2011     2012     2011
Tonnes mined (000)                     3 530   5 899   3 468   16 647   13 196
Ore tonnes mined (000)                   586     306     844    1 152    2 022
Tonnes processed (000)                   546     296     602    1 129    2 364
Head grade milled (g/t)                  4.3     4.4     2.9      3.9      2.7
Recovery (%)                            90.2    91.5    88.6     93.2     87.5
Ounces produced                       68 083  38 227  51 080  131 110  178 807
Ounces sold                           63 319  42 166  52 491  124 891  182 822
Average price received (US$/oz)        1 601   1 592   1 715    1 633    1 514
Cash operating costs* (US$/oz)           624     681     848      674      863
Total cash costs* (US$/oz)               716     776     943      767      949
Gold on hand at period end* (US$000)   9 850       -   3 178    9 850    3 178
Profit from mining activity*
(US$000)                              56 019  34 401  40 533  108 153  103 298
Gold sales* (US$000)                 101 382  67 139  90 019  203 953  276 883

Randgold owns 80% of  Loulo with the  State of Mali  owning 20%. The  State's 
share is  not  a  free  carried  interest.  Randgold  has  funded  the  whole 
investment in Loulo by way of shareholder loans and therefore controls 100% of
the cash flows from Loulo until the shareholder loans are repaid.

Randgold consolidates 100%  of Loulo  and shows  the non-controlling  interest 

* Refer to explanation of non-GAAP measures provided.

Change in accounting policy - Production phase stripping costs

As previously disclosed, the group changed its accounting policy on  stripping 
costs in the production-phase of opencast miningeffective 1 January 2012.  As 
such,  all  eligible  production-phase  deferred  stripping  (the  process  of 
removing waste  from  a  surface mine  in  order  to gain  access  to  mineral 
deposits) costs  associated  with a  stripping  campaign are  capitalised  and 
depreciated over the life of the relevant  section of the orebody on a  tonnes 
milled basis.  This  is in  line  with the  recently  issued IFRIC  20  which 
endeavours to  standardise reporting  across the  mining industry.  IFRIC  20 
requires that, to the extent that  the benefit from the stripping activity  is 
realised in the form of inventory produced, the directly attributable costs of
that activity should be treated as ore stockpile inventory.

To the extent that  the benefit is  the improved access  to ore, the  directly 
attributable costs  should be  treated as  a non-current  'stripping  activity 
asset'. All stripping costs incurred since 1January 2010 are capitalised  to 
the related asset in the relevant year.

IFRIC 20 includes transitional provisions which permit the group to capitalise
eligible costs incurred from the start of the earliest period presented, which
will be  1January 2010  within  US 20-F  filings  for 2012.  Total  eligible 
production-phase stripping costs of US$12.1 million were incurred in Q4  2011, 
relating to the Yalea South pushback, and have now been capitalised.

The capitalised stripping costs  will be depreciated on  a unit of  production 
basis, over the  expected useful life  of the Yalea  orebody and  depreciation 
beganin July 2012,  in line with  the mine plan.  No other  production-phase 
stripping costs were incurred between 1January 2010 and 30 September 2011 and
the effect of costs prior to this date is immaterial.

Loulo (and therefore  the Loulo-Gounkoto complex  as well) was  the only  mine 
affected by the restatement which affects applies only to comparative  figures 
and includes Q4 2011. We note that IFRIC  20 is yet to be endorsed by the  EU 
but has been applied as its endorsement is expected during 2012. In line with
IFRIC 20, the  company's 2012 results  now include a  restatement of the  2011 

LOULO IMPACT OF IFRIC 20                                       12 months
                                                                 31 Dec

Decrease in mine production costs                                 12100
Increase in income tax expenses                                    3630
Increase in net profit                                             8470
Increase in operating retained earnings                            6776
Increase in non-controlling interests                              1694
Increase in property, plant and equipment                         12100
Increase in deferred tax                                           3 630
Increase in basic earnings per share (cents per share)                 7
Increase in fully diluted earnings per share (cents per share)         7

Yalea underground mine

The table below shows the Yalea underground progress on key indicators:

                   Quarter Quarter Quarter  9 months 9 months
                    ended   ended   ended     ended    ended
                    30 Sep  30 Jun  31 Mar    30 Sep   30 Sep
YALEA UNDERGROUND     2012    2012    2012      2012     2011
Ore tonnes mined   320 983 163 430 127 620   612 033  288 543
Waste tonnes mined 195 026 192 205 154 822   542 053  431 613
Total tonnes mined 516 009 355 635 282 442 1 154 086  720 156
Development metres   3 093   2 845   2 206     8 144    6 813

During this quarter, a total of 3093 metres of development was completed  and 
320983 tonnes  of ore  at 3.73g/t  was hauled  to surface.  The project  has 
completed 32020  metres  of development  to  date. Ore  production  for  the 
quarter increased significantly from last quarter's 163430 tonnes to  320983 
tonnes, an  improvement of  96% and  a  quarterly record.  The mine  has  now 
consistently beaten the 100kt per month mark for the last four months.

The major improvement in  production was due to  the development rate for  the 
last five months  having exceeded 1000  metres per month,  which in turn  has 
made it possible to  mine and produce from  multiple stopes. Optimal ore  and 
waste handling  system from  88L/113L  and using  the  conveyor to  hoist  all 
materials to surface has also aided the mine's production rate.

During this  quarter  Yalea underground  development  has also  shown  another 
improvement, with 3093  metres having been  completed, a 9%  increase on  the 
prior quarter.

The  major  improvement  in  development  was  due  to  the  introduction   of 
independent blasting conditions between the  two sections of Yalea,  increased 
headings availability and the high tramming turnover due to the  commissioning 
of the 88L ore and waste passes.  Development has been focused on opening  up 
stoping ground on 128L, 108L, 168L as well as the 208L.

As the total metres advanced has increased, so the cost per metre has  reduced 
by 24% from US$8287 in Q3 last year to US$6250 in Q3 this year.

Gara underground mine development

The table below shows the Gara underground progress on key indicators:

                   Quarter Quarter Quarter 9 months 9 months
                    ended   ended   ended    ended    ended
                    30 Sep  30 Jun  31 Mar   30 Sep   30 Sep
GARA UNDERGROUND      2012    2012    2012     2012     2011
Ore tonnes mined   102 785 119 067 132340  354 192   76 011
Waste tonnes mined 183 841 142 983 127 316  454 140  369 686
Total tonnes mined 286 626 262 050 259 656  808 332  445 697
Development metres   2 454   2 008   1 961    6 423    4 693

During this quarter a total of 2454 metres of development and 102785  tonnes 
at 5.31g/t was hauled to surface.

Gara declines have advanced to 2241  metres from surface at a vertical  depth 
of 314  metres. Gara  produced 102785  tonnes this  quarter against  119067 
tonnes in Q2, a 14% decrease as a  number of stope designs had to be  reviewed 
due to  flatter than  anticipated dips.  Development of  2454 metres  showed 
another improvement of  22% quarter  on quarter. The  consistent increase  in 
metres advanced has resulted in  an 18% decrease in  cost per metre from  US$8 
601 in Q3 last year to US$7 014 in Q3 this year.

Work has  continued on  building the  infrastructure to  sustain the  required 
production profile including on the conveyor belt system with the equipping of
CV1  and  CV2  now  complete.   The  second  primary  fan  was   successfully 
commissioned during the quarter which will further assist the development.


On a  standalone basis,  Gounkoto produced  62026 ounces  of gold  (Q2  2012: 
94254 ounces)  at  a  total  cash  cost per  ounce  of  US$755/oz  (Q2  2012: 
US$646/oz). The 34% reduction in ounces produced reflects a planned  decrease 
in the tonnes milled.  Mining at Gounkoto for  the quarter focussed on  waste 
stripping (the strip ratio increased from 7.8  to 15.1) and as a result  fewer 
ore tonnes were  mined. Ore  feed to the  plant was  supplemented by  372835 
tonnes of  medium  grade  stockpile  ore  causing  a  decrease  in  ore  grade 
processed. This,  along with  slightly lower  recoveries, resulted  in a  17% 
increase in  the cash  cost  per ounce  to  US$755/oz (Q2  2012:  US$646/oz). 
Construction on the mine is now completed with only sustaining capital planned
for the future.

One LTI was recorded  during the quarter. The  mine continues to make  steady 
progress  towards  its  objective   of  achieving  the   Stage  1  ISO   14001 
environmental certification by the end of the year.

The mine was officially opened on  6August 2012. A maiden dividend was  paid 
to shareholders  in July  2012 and  the second  dividend was  approved at  the 
November board meeting (US$69.0 million).

                                     Quarter Quarter Quarter 9 months 9 months
                                       ended   ended   ended    ended    ended
                                      30 Sep  30 Jun  30 Sep   30 Sep   30 Sep
                                        2012    2012    2011     2012     2011
Tonnes mined (000)                     7 254   7 077   6 144   21 764   12 937
Ore tonnes mined (000)                   450     804     440    1 920      840
Tonnes processed (000)                   603     794     262    2 096      342
Head grade milled (g/t)                  3.5     4.0     4.8      3.7      5.1
Recovery (%)                            90.3    91.5    89.5     90.4     88.8
Ounces produced                       62 026  94 254  35 990  227 930   50 051
Ounces sold                           58 013 100 680  35 990  227 769   50 051
Average price received (US$/oz)        1 644   1597   1 673    1 637    1 628
Cash operating costs* (US$/oz)           657     550     536      605      463
Total cash costs* (US$/oz)               755     646     636      704      561
Gold on hand at period end* (US$000)  12 869       -       -   12 869        -
Profit from mining activity*
(US$000)                              51 530  95 738  37 326  212 519   53 444
Gold sales* (US$000)                  95 353 160 780  60 223  372 760   81 507

Randgold has created  a new  company, Gounkoto,  to hold  the Gounkoto  mining 
permit and mining  assets. Randgold owns  80% of Gounkoto  with the State  of 
Mali owning  20%.  Randgold  consolidates  100% of  Gounkoto  and  shows  the 
non-controlling interest separately.

* Refer to explanation of non-GAAP measures provided.

Gounkoto underground project

A preliminary geotechnical  investigation has identified  no fatal flaws  with 
the ground conditions of the high grade jog zone beneath the northern  portion 
of the current  Gounkoto pit.  Preliminary resource  estimation confirms  the 
potential for plus 1Moz mineral  resource at above 5g/t. Additional  drilling 
to convert the entire resource to  indicated classification is expected to  be 
completed in the fourth quarter.

The area is more geotechnically complex with a number of well-defined  brittle 
faults which will likely result in  multiple mining methods being employed  to 
extract the ore. Away from the faults however the geotechnical  investigation 
has identified that the bulk of the ore will be exploited by open stope mining
methods. The prefeasibility study, planned for completion in early 2013  will 
now focus on a preliminary mine  design and schedule, together with trade  off 
of  optimal  backfill  methods.  Assuming  the  completion  of  a  successful 
prefeasibility study, we anticipate completing  the full feasibility study  by 
the end of 2013 and  starting the decline in  2014. The underground ore  will 
then complement the ore delivery from  the Gounkoto open pit where  production 
is expected to decline from 2016 due to the deepening pit.


During the quarter,  Morila produced 44960  ounces of gold,  down 17% on  the 
previous quarter (Q2 2012: 54052 ounces) but ahead of plan. The decrease  in 
production followed the drop in the ore grade processed to 1.4g/t from  1.7g/t 
in the previous quarter and a small reduction in tonnes milled in the  current 
quarter. The drop  in tonnes  processed resulted  from the  SAG mill  gearbox 
repair while the lower grade ore was  as per the plan. Profit from mining  of 
US$39.2 million was up on the previous quarter's US$38.5 million, as a  result 
of the higher average gold price received and lower cash cost per ounce.

Notwithstanding the  lower  production,  the  total cash  cost  per  ounce  of 
US$781/oz was 12% down on the previous quarter's US$885/oz as a result of  the 
processing of mostly marginal ore, which  carried no cost of mining (this  was 
not the case in the previous  quarter) and hence the stockpile adjustment  was 
greatly reduced.

No LTIs were recorded during this quarter as in the previous quarter,  another 
excellent performance.

The mine continued with the advancement of the pit 4S pushback project with  a 
view to obtaining government  support and a board  decision on the project  by 
the end  of the  year. Further  advancements were  made in  the  agribusiness 
initiative including  the  recruitment of  a  professional farm  manager.  An 
expansion programme on the existing pilot projects to maximise the use of mine
infrastructure and to optimise production was also put in place.

MORILA RESULTS                       Quarter Quarter Quarter 9 months 9 months
                                       ended   ended   ended    ended    ended
                                      30 Sep  30 Jun  30 Sep   30 Sep   30 Sep
                                        2012    2012    2011     2012     2011
Tonnes mined (000)                         -       -       -        -       16
Ore tonnes mined (000)                     -       -       -        -       16
Tonnes processed (000)                 1 080   1 102   1 130    3 338    3 415
Head grade milled (g/t)                  1.4     1.7     1.8      1.6      1.8
Recovery (%)                            91.1    92.1    91.8     91.6     90.6
Ounces produced                       44 960  54 052  60 955  153 643  178 900
Ounces sold                           44 960  54 052  60 955  153 643  178 900
Average price received (US$/oz)        1 653   1 596   1 701    1 648    1 540
Cash operating costs* (US$/oz)           682     789     692      678      700
Total cash costs* (US$/oz)               781     885     795      777      793
Profit from mining activity*
(US$000)                              39 193  38 463  55 260  133 745  133 785
Stockpile adjustment** (US$/oz)           83     336     263      171      280
Attributable (40% proportionately
Gold sales* (US$000)                  29 723  34 509  41 484  101 277  110 237
Ounces produced                       17 984  21 621  24 382   61 457   71 560
Ounces sold                           17 984  21 621  24 382   61 457   71 560
Profit from mining activity*
(US$000)                              15 677  15 385  22 104   53 498   53 514

* Refer to explanation of non-GAAP measures provided.

** The  stockpile  adjustment per  ounce  reflects the  charge  expensed  in 
respect of stockpile  movements during  the period  divided by  the number  of 
ounces  sold.  Total  cash  cost   per  ounce  includes  non-cash   stockpile 


During Q3,  Tongon produced  56 381  ounces of  gold in  line with  the  prior 
quarter's 56  432 ounces.  Gold  production for  the quarter  was  positively 
impacted by an increase in mill availability and throughput but was offset  by 
a slight  decrease  in  gold  recovery and  grade  compared  to  the  previous 
quarter. Tongon successfully mined through the transition zone of the orebody
in the southern area of  the South Zone (SZ) pit  during the rainy season  and 
has demonstrated a steady increase in milled tonnes from 756kt in Q1, 853kt in
Q2 and 966kt in Q3  of 2012, with the  plant throughput rate now  consistently 
above 500tph. The percentage of transition ore fed to the plant decreased  as 
mining progressed from transition, deeper into hard sulphide ore. Blasted ore
fragmentation improved in the latter half of the quarter, also contributing to
the improved throughput.

Mill availability improved from 79.4% in Q2 to 85.7% in Q3 but is still not at
the planned 92%  availability. The main  contributor to operational  downtime 
continued to  be the  number and  frequency of  grid power  interruptions  and 
exceptionally high wear  mechanical failures of  pipes and pumps,  due to  the 
abrasive ore. The total number of plant stoppages associated with grid  power 
supply failurescontinued to be excessive, similar to those which occurred  in 
Q2 and still unacceptably high in terms of what is required to enable the grid
power to  be  utilised  98% of  the  time.  The planned  installation  of  an 
additional capacitor  bank, to  stabilise  the incoming  grid power,  and  the 
installation of five new 1MW generator  sets to remediate this issue is  still 
scheduled for the end of Q4  as per plan. Higher level piping  specifications 
and the use of ceramic wear liners  are being trialled to minimise the  effect 
that the highly abrasive sulphide ore has on the life of piping and pumps.

Gold recovery decreased in Q3 to 78.6% compared to 81.9% achieved in Q2.  The 
reduced recovery was due to the  abnormal number of process upsets  associated 
with frequent grid  power interruptions  as well  as the  slightly lower  head 
grade in  Q3.  At  the  end  of Q3  an  additional  10tpd  oxygen  plant  was 
successfully installed and commissioned to  augment the existing 20tpd  oxygen 
plant. The additional oxygen supply is expected to ensure adequate oxygen  is 
supplied to  the CIL  Aachen reactors  and lances  and contribute  towards  an 
improved gold recovery. Significant progress  was made in the flotation  area 
where the  flotation  cells underflow  pipes,  which were  wearing  frequently 
causing significant downtime,  were replaced  with ceramic  lined launders  to 
enable continuous operation.  Local operator  on-the-job training,  knowledge 
transfer and short  term interval  controls remain critical  to achieving  the 
targeted production KPIs and this is the current focus of management  assisted 
by a team of Randgold corporate experts.

Mining continued in the SZ pit in Q3. A total of 5 280kt was mined which  was 
a 12.8% improvement on the previous quarters' of 4 680kt. Notwithstanding the
rainy season,  mining  performance  improved  during  the  quarter  as  mining 
activities progressed from transition material  into hard sulphide rock.  Ore 
fragmentation also improved  significantly increasing excavator  productivity, 
reducing the number  of crusher  bin blockages and  increasing the  downstream 
crusher throughput rate.

Gold sold for  the quarter  was 55  653 ounces, 8.4%  higher than  the 51  358 
ounces sold  in Q2,  resulting in  an increased  profit from  mining  activity 
quarter on quarter. However, total cash cost per ounce increased to US$720/oz
from US$676/oz for the previous quarter, reflecting the lower average grade of
the ore mined  and lower recoveries.  Costs were also  adversely impacted  by 
operating generator sets to  supplement the shortfall  in national grid  power 
supply. The new  capacitor bank  being installed in  Q4 is  expected to  help 
eliminate the  adverse effect  of  grid power  supply  spikes but  until  more 
consistent power availability is achieved, costs will remain under pressure.

No LTIs  nor  major environmental  incidents  occurred during  Q3.  The  mine 
recorded 629 days without incurring any LTIs, equivalent to 8516 904 LTI free
hours. The mine also achieved  its ISO 14001 environmental accreditation  and 
continues with  an  extensive  safety  aspect  identification  and  risk-based 
assessment towards  the  mine's  goal  of achieving  its  OHSAS  18001  safety 
accreditation by the end of the year.

                                     Quarter Quarter Quarter 9 months 9 months
                                       ended   ended   ended    ended    ended
                                      30 Sep  30 Jun  30 Sep  30 Sept   30 Sep
                                        2012    2012    2011     2012     2011
Tonnes mined (000)                     5 280   4 680   2 933   14 026   12 676
Ore tonnes mined (000)                 1 209   1 073     607    3 126    2 480
Tonnes processed (000)                   966     853     755    2 575    2 358
Head grade milled (g/t)                  2.3     2.5     3.2      2.4      2.9
Recovery (%)                            78.6    81.9    90.9     80.3     92.3
Ounces produced                       56 381  56 432  70 910  159 955  206 058
Ounces sold                           55 653  51 358  68 154  155 898  226 057
Average price received (US$/oz)        1 678   1 615   1 730    1 661    1 545
Cash operating costs* (US$/oz)           675     628     585      662      465
Total cash costs* (US$/oz)               725     676     637      712      511
Gold on hand at period end* (US$000)  10306   7 965 5 570   10 306    5 570
Profit from mining activity*
(US$000)                              53 036  48 212 117 884  147 988  349 148
Gold sales* (US$000)                  93 411  82 931  74 500  259 017  233 532

Randgold owns  89% of  Tongon with  the  State of  Côte d'Ivoire  and  outside 
shareholders owning 10%  and 1% respectively.  The outside shareholders'  and 
State's shares are not free carried interests. Randgold has funded the  whole 
investment in Tongon by way of  shareholder loans and therefore controls  100% 
of the  cash  flows from  Tongon  until  the shareholder  loans  are  repaid. 
Randgold consolidates 100%  of Tongon and  shows the non-controlling  interest 

* Refer to explanation of non-GAAP measures provided.





The Kibali project progressed on schedule  during the quarter with the  'first 
gold' still targeted for the end of Q4 2013. All material contracts have  now 
been awarded inclusive of the vertical  shaft sinking contract. As such,  the 
required accommodation in the construction camp has dramatically increased  as 
more contractors arrived  on site  and in  order to  accommodate the  required 
imported skills  from  other areas  in  the  DRC. The  construction  camp  is 
currently undergoing  expansion  from  700  to  1500  beds  to  satisfy  this 
additional demand.

Bulk earth and civil works

During the quarter,  the team  focused on  finishing bulk  earthworks for  the 
metallurgical  facility  and   other  areas   on  the   critical  path.   The 
metallurgical footprint has now been handed  over to the civil contractor  and 
mass concrete  works  on  the  project  have  commenced.  Work  included  the 
following highlights:

· The boxcut  was redesigned  to accommodate the  additional clay  material 
encountered and is now expected to be handed over to the decline contractor in

· Bulk earthworks erection for the vertical shaft platform started.

· Bulk  concrete  works  for the  mill  commenced  and is  on  schedule  to 
accommodate the mills in early 2013.

· Concrete foundations  for the  first four  CIL tanks  were completed  and 
erection of steel work for the CIL facility has started.

· Both  mills  were brought  from  the manufacturing  facility  in  Europe, 
offloaded at the  Mombasa port in  Kenya and  are now on  the 1800  kilometre 
journey to site.

· Aggregate production was accelerated  to accommodate the higher  off-take 
requirement of concrete in the various construction projects.


The open  pit  mining contractor  is  fully established  and  has  accelerated 
activity to maintain the  schedule. The sinking  contractor for the  vertical 
shaft is currently establishing onsite. The engineering and design contractor
for the vertical  shaft has been  appointed and  some 25% of  design has  been 
completed. The owners  team structures  are functional and  all systems  have 
been established to manage the various long term mining contracts.

Relocation Action Plan (RAP)

The RAP  continued  at  pace and  more  than  1 000  families  have  now  been 
resettled. Following the repair of the  storm damaged houses in the  previous 
quarter, some alterations to existing houses are to be undertaken in Q4 in the
Chauffer village to upgrade the houses in that village to the specification of
the houses that have been rebuilt elsewhere. On average, 45 houses are  being 
completed per week and the next three villages are planned to be relocated  by 
year end.

Capital expenditure

Project expenditure ramped up during the quarter as forecast but was below the
budgeted amount. Total expenditure for the quarter under review was  US$143.3 
million, bringing capital expenditure for  the year to US$305.6 million  (100% 
of the project). The project is still estimating capital expenditure for 2012
and 2013 in line with  our previous forecast although  the cash flow split  is 
now likely to be skewed towards the 2013 year.


During the  quarter, 11  LTIs were  recorded at  the project.  The Lost  Time 
Injury Frequency  Rate (LTIFR)  was  3.72 compared  to  2.28 in  the  previous 
quarter.  Management  has  intensified  its  focus  on  safety  and  increased 
awareness across the project  and is committed to  reducing the LTIFR in  line 
with its  stated  objectives,  notwithstanding  the  challenging  construction 
environment and number  of contractor  employees with  no previous  industrial 
safety exposure.


Building on from  the work programme  highlighted in the  previous quarter,  a 
close spaced reverse  circulation drill  programme has started  at Massawa  in 
order to improve our  understanding of the late  high grade mineralisation  in 
the Central Zone. This is  expected to aid us  in improving our knowledge  of 
the frequency, continuity and tenor of the high grade mineralisation, which is
designed to lead  to an  improved estimate of  this portion  of the  orebody. 
Drilling is expected to be completed in Q4 and analysis of the data is planned
for early 2013.

Exploration continues to look for incremental ounces for the project, with  an 
updated  target  generation  programme   identifying  30  new  targets   being 
prioritised for follow up work.  The current metallurgical testwork has  also 
been completed and generated a detailed  scope of work, including pilot  plant 
testwork to improve our confidence in the recoveries and to determine  optimal 
operational parameters  and  processing  costs, planned  for  2013.  We  have 
engaged with  the new  Senegalese government  at  a high  level to  keep  them 
updated on  the project  and highlight  the need  for a  more efficient  power 
solution as part of our greater West African power initiative.





The third  quarter  is traditionally  the  quietest  period of  the  year  for 
fieldwork, with  activity  tailing off  as  access to  projects  becomes  more 
difficult with the onset  of the annual wet  season across West Africa.  This 
period's focus has been  on reporting and  updating interpretations from  data 
collected during  the  field season  and  preparing budgets  and  future  work 
programmes. Work  around the  operations, however,  is less  affected by  the 
weather as infrastructure is more developed.

This year  drilling at  the Yalea,  Tongon SZ  and Kibali  deposits  continued 
throughout the quarter:



During the quarter  a detailed geological  and structural review  of the  high 
grade Jog Zone below the  base of the open pit  was completed to progress  the 
underground prefeasibility  study. The  Gounkoto  Jog Zone  is located  in  a 
'left-hand' step in the strike of the  host shear zone which is also  mimicked 
in the Wrench Zone  at Gounkoto, Yalea  Deposit, as well  as the higher  grade 
portions of the Baboto South and Loulo 3 deposits. The occurrence of all five
in  left-stepping  segments  of  the   host  shear  zone  confirms  the   high 
prospectivity of this type of structural trap and the identification of  these 
are an important exploration tool going forward.

Two mineralised zones within  the Jog Zone at  Gounkoto remain open for  short 
strike length steeply plunging  shoots below and to  the south of the  current 
drilling. Further potential also remains  down-dip of the mineralised  shoots 
delineated in the  Wrench Zone.  One deep  hole at  the base  of the  current 
drilling contains a 122  gram per metre intersection  which may be either  the 
upper part of another major mineralised zone below the -400mRL, or an outlying
intensely mineralised intersection.

A new phase of drilling  has commenced at Gounkoto  to infill gaps within  the 
resource model in the  Jog Zone as  well as test  opportunities to extend  the 
high grade mineralisation.


At Loulo,  further drilling  was completed  at Loulo  3 and  Yalea.  Detailed 
interpretations and  models  for  Baboto  were  finalised  and  reconnaissance 
diamond holes were drilled at a new target, Yalea Ridge South.

Results from deeper drilling, below the base of the pit at Loulo 3,  confirmed 
the geological model with all  holes intersecting the targeted structure,  but 
also confirmed  the  highly  variable nature  of  the  mineralisation  (nugget 
effect) at the  Loulo 3 deposit  with most holes  returning narrow and  weakly 
mineralised intersections.

Only two  holes of  the programme  returned high  grade intersections  at  the 
southern part of the  Yalea structure: L3DH109 -  25.1 metres at 5.73g/t  from 
272.20; and L3DH111 - 14.13 metres at 3.48g/t from 336metres. However  these 
holes represent only a small portion of the strike extent at Loulo3 and  more 
work is required before further drilling is motivated to better understand the
controls on high grade mineralisation.

At Yalea, the major high-grade mineralised shoot ('purple patch') which  forms 
the core  of  the deposit  is  located along  the  intersection of  the  north 
striking Yalea Shear Zone and north northeast striking Yalea Structure. Bends
in the dip and strike of each  bound the northern, upper, and lower limits  of 
the 'purple patch'.

The southern  end  of the  Yalea  deposit remains  open  at depths  below  the 
-500mRL. Additional gently to  steeply south-plunging mineralised shoots  may 
be present along intersections of the  Yalea Structure, Yalea Shear Zone,  and 
smaller shears in  the footwall  of the deposit.  A drill  hole is  currently 
being planned to test this target area.

Five diamond drill holes were completed to further evaluate the Yalea deposit:
three concentrated on  the 'purple  patch' while  two were  drilled below  the 
current resource model to test for possible repetitions of the 'purple patch'.

· YDH262 was drilled 60 metres to the south of the current boundary of  the 
'purple patch'  and returned  16.65  metres at  11.11g/t from  709.95  metres, 
confirming a continuation of the high grade mineralisation.

· YDH264 was drilled inside the boundary  of the 'purple patch', but in  an 
area that had  been poorly drilled  during the exploration  phase. This  hole 
returned 14.7 metres at 18.02g/t from 712.3 metres.

· YDH261 was drilled on the lower boundary contact of the 'purple  patch'. 
Gold  assay  results  are  pending   but  observations  expect  only  a   weak 
intersection to be returned. However, it  was also noted that a fault  passes 
through the location of  the orezone suggesting a  displacement of high  grade 

· Two  holes were  drilled  towards the  north of  the  deposit to  test  a 
potential  north  plunge  to  mineralisation  and  repetition  of  high  grade 
mineralisation: YDH259Areturned 5.15  metres at 8.11g/t  from 1 322.95  metres 
from a hangingwall  splay off  the main  Yalea shearwhileYDH258  in the  main 
Yalea Structurereturned anomalous results from a broad alteration zone as  the 
structure did not reactivate during the  main mineralising event in this  part 
of the orebody.

Two reconnaissance diamond holes were also drilled into the Yalea Ridge  South 
target to  test under  previous  high grades  in RC  holes  and to  provide  a 
structural  interpretation  around  which   to  build  a  more   comprehensive 
structural model. These holes failed to confirm the high grades however  they 
did  confirm  extensive  silica-carbonate-albite  alteration  and   structural 
complexity in terms of faulting and folding.

The target still remains a high priority  as it has all the ingredients of  an 
anomalous system  along  which mineralising  fluids  have passed  and  further 
modelling is required to  locate potential traps  of mineralisation along  the 
target, which locates below  a thick blanket of  transported gravels from  the 
Falémé drainage system.


Further  mapping  of  the  Kolgold  target   was  carried  out  to  add   some 
interpretation and understanding to the  high grade lithosamples (62.9g/t  and 
20.4g/t) which  had  previously  been collected  from  there.  The  fieldwork 
identified a north-south  trend with a  number of parasitic  'S' shaped  folds 
suggesting the  target locates  on the  western limb  of a  larger  antiform. 
Higher grades  are  located  in  the  folded  areas.  Trenching  prior  to  a 
reconnaissance phase of drilling will be completed in Q4.

Mali South

A new project  manager, Mohammed Diarra,  has taken over  at Mali South.  The 
camp at Nimissila, which is very remote,  has been closed for much of the  wet 
season due to  access issues and  the team  has been working  on updating  the 
interpretations for the  Nimisila JV  and the  whole Mali  South region.  Two 
permits are still in the process of being transferred to Randgold as part  our 
deal in Burkina Faso with Volta Resources.


An updated  interpretation and  prospectivity analysis  of the  Mako belt  has 
provided the team with new initiatives and  a host of new targets to focus  on 
during this coming field season. Of particular importance is the  recognition 
of a second terrain boundary to the  west of the Main Transcurrent Shear  Zone 
(MTZ) which hosts  the Sofia  mineralisation as  well as  the Sabodala  mine. 
Meanwhile, on the ground, a set  of weakly anomalous and patchy  intersections 
were returned from a RAB programme at East Mandinka.

The South Kawsara target, however, returned some encouraging results with some
significant intersections  associated with  a coherent  gold in  soil  anomaly 
which was recently RAB tested.  Intersections include: KCSRAB032 -39  metres 
at 0.36g/t;and KCSRAB034 - 15 metres at 1.82g/t including 9 metres at 2.84g/t
(from 6 metres) and  6 metres at 3.89g/t  which have delineated a  1kilometre 
strike length  and a  plus 15metre  wide altered  and mineralised  zone  with 
potential along strike to be followed up in Q4.

At Massawa  preparations  are  underway to  complete  a  5 metre  by  5  metre 
orientation grade control study over a  150 metre segment of the Central  Zone 
orebody to investigate grade variability associated with the high grade quartz
stibnite phase of gold mineralisation.


Work completed during the quarter includes integrating latest drill data  from 
Diaouala, completing the AC  drilling on the Nielle  permit as well as  infill 
diamond drilling in the Tongon SZ orebody.

In the Diaouala permit, a 3000 metre RC reconnaissance drilling programme was
completed at the  Kokoriko target,  while detailed mapping  and rock  sampling 
were carried out  in the southern  part of  the permit to  identify new  drill 
opportunities. Drill results confirm the occurrence of a mineralised envelope
of roughly 6.5metres wide averaging 1.40g/t and extending over 2.2kilometres
with possible higher grade in the eastern zone of the target.

In the Nielle  permit, work has  focused on validating  field observations  at 
brownfields targets  and also  aircore drilling  at Coucal  and Coucal  South, 
close to the mine.  Gold assay results  are pending. Unfortunately  drilling 
could not be completed at Katosol as planned due to access problems during the
wet season and has now been rescheduled for Q4.

The SZ infill drilling is still progressing and in addition to the  dilational 
zone intersected last quarter, this  drilling has recently highlighted a  high 
grade zone towards the northern section of  the pit with TND374 - 9.20  metres 
at 4.49g/t (from 135.40 metres) including 5.50 metres at 6.38g/t and 5  metres 
at 7.97g/t (from 283.60 metres) including  2.28 metres at 14.03g/t and a  wide 
intersection in the southeastern  end of the pit  (35.70 metres at  2.21g/t). 
The aim of this drilling has been  to convert inferred ounces to the  measured 
and indicated category.

Work completed  in the  Boundiali  permit consisted  of data  integration  and 
compilation and defining  priority programmes  for the  upcoming field  season 
where 30 new targets were added during the field season.


Results from a first phase of mapping and rock sampling confirm the continuity
of mineralised structures identified at  Tiossera and Kounkana targets  within 
the Kampti  permit.  Results returned  up  to  11.1g/t and  16.3g/t  in  rock 
samples. Results of  a petrographic study  of 23 rock  specimens from  Kampti 
permit confirmed a  volcanic and  intrusive suite of  rocks (gabbro,  diorite, 
granodiorite, tonalite,  andesite,  basalt, lapilli-tuff  and  felsic  igneous 
rock), in line with field observations.

A work programme, including drilling, has been established to test the surface
expression and potential of the  Tiossera and Kounkana mineralised systems  as 
well as the other identified targets  within Kampti permit. The key issue  at 
Kampti is to quickly establish if the high grade mineralisation has sufficient
widths to be economic.



The principal aim currently at Kibali  is to complete the inventory review  of 
the resources  acquired from  Moto. To  identify and  mitigate the  potential 
uncertainty in inherited datasets, a  programme of relogging of all  available 
RC chips and  drill core in  conjunction with data  reviews are conducted  for 
each deposit to generate a geological model. So far no issues of concern have
been identified.

Two areas have been identified in the KCD deposit as having high potential for
resource to reserve conversion, totalling plus 1Moz.

· At  the  north-eastern end  of  the 5000  lode  is an  area  which  hosts 
mineralisation currently allocated as part  of an inferred resource; the  area 
also has mineralisation that  is currently part of  the stope designs for  the 
5000 lode  reserve. Three  diamond holes  have been  motivated to  test  this 
area. The resource department estimates indicate that the drill holes have an
overall potential to  convert approximately  0.53Moz of gold  at greater  than 

· A review of the drilling and mineralised intersections in the vicinity of
the south-west termination  of the 9000  lode stope designs  has identified  a 
significant gap  in  drill spacing  that  has  potential to  host  high  grade 
mineralisation. An initial three-hole programme  has been designed to  infill 
the gap. The target area is approximately 240 metres long by 260 metres  wide 
and 30  metres thick.  Successfully intersecting  high grade  material  could 
motivate a  second phase  of  the resource  conversion drilling  programme  to 
target a larger zone of approximately 460  metres long by 260 metres wide  and 
30 metres  thick,  with  expected  average grades  above  4g/t  and  with  the 
potential to add more than 0.50Moz.

At Gorumbwa, drilling  has begun  to convert  0.39Moz at  3.36g/t of  inferred 
ounces within a potential open pit.

At Kalimva, a second phase of diamond drilling, comprising five holes has been
completed with positive results returned over a 750 metre strike: KVDD007 - 21
metres at  2.13g/t including  8 metres  at 3.98g/t;  KVDD009 -  9.3 metres  at 
1.31g/t and  14.9 metres  at  2.19g/t including  3.3  metres at  4.48g/t;  and 
KVDD010 - 20.15 metres at 3.27g/t including 1.8 metres at 16g/t.

A first reconnaissance phase of drilling has also been completed at Ikamva,  2 
kilometres to the west  of Kalimva. Drill hole  IVDD006 returned a  promising 
intersection of 34.8 metres at 2.42g/t associated with a fold hinge.

A new potentially high grade target  named Rhino has been identified in  close 
proximity to the mine site where 23 lithosamples have returned values  ranging 
from 0.2g/t to 7g/t with an average grade of greater than 2g/t associated with
folding in volcaniclastics and ironstone.



                                   Quarter  Quarter  Quarter 9 months 9 months
                                     ended    ended    ended    ended    ended
                                    30 Sep   30 Jun   30 Sep   30 Sep   30 Sep
US$000                                2012     2012     2011     2012     2011
Gold sales on spot                 318 332  346 563  308 822  936 232  815 612
Total revenues                     318 332  346 563  308 822  936 232  815 612
Other income                         5 747    1 049    3 302    7 853    5 483
Total income                       324 079  347 612  312 124  944 085  821 095
Mine production costs              117 318  102 939  101 719  317 465  270 099
Movement in production inventory
and ore stockpiles                (16357)    5 946    (382) (21190)   14 481
Depreciation and amortisation       40 172   29 370   30 435   93 485   74 836
Other mining and processing costs   21 987   21 200   16 101   60 247   48 481
Mining and processing costs        163 120  159 455  147 873  450 007  407 897
Transport and refining costs           620      575      546    2 055    1 306
Royalties                           16 185   18 218   14 611   47 864   37 783
Exploration and corporate
expenditure                          8 766   14 292    9 298   33 919   31 810
Other expenses                           -    1 210        -    5 437    5 034
Total costs                        188 691  193 750  172 328  539 282  483 830
Finance income                         538      375    (587)    1262      620
Finance costs                         (61)  (1042)    (359)    (706)  (2026)
Finance income/(costs) - net           477    (667)    (946)      556  (1406)
Profit before income tax           135 865  153 195  138 850  405 359  335 859
Income tax expense                (14516) (11320) (15985) (38127) (38630)
Profit for the period              121 349  141 875  122 865  367 232  297 229
Other comprehensive income
Gain/(loss) on available-for-sale
financial assets                       223  (2657)  (3 332)  (1837)  (8372)
Other comprehensive income             223  (2657)  (3332)  (1837)  (8372)
Total comprehensive income         121 572  139 218  119 533  365 395  288 857
Profit attributable to:
Owners of the parent               103 341  117 463  106 779  310 244  261 583
Non-controlling interests           18 008   24 412   16 086   56 988   35 646
                                   121 349  141 875  122 865  367 232  297 229
Total comprehensive income
attributable to:
Owners of the parent               103 564  114 806  103 447  308 407  253 211
Non-controlling interests           18 008   24 412   16 086   56 988   35 646
                                   121 572  139 218  119 533  365 395  288 857
Basic earnings per share (US$)        1.12     1.28     1.17     3.38     2.87
Diluted earnings per share (US$)      1.11     1.26     1.15     3.34     2.82
Average shares in issue (000)       91 949   91 860   91 444   91 864   91 222

These results  are presented  as the  third quarter  report. They  have  been 
prepared in accordance with International Financial Reporting Standards (IFRS)
as adopted  by the  European Union  on a  basis that  is consistent  with  the 
accounting policies applied by the group in its audited consolidated financial
statements for  the year  ended 31  December 2011,  except for  the change  in 
accounting policy on production-phase stripping cost, and which will form  the 
basis of  the 2012  Annual Report.  This announcement  has been  prepared  in 
compliance with IAS 34 - Interim Financial Reporting.



                                                   At       31 Dec        At
                                               30 Sep         2011    30 Sep
US$000                                           2012 (Restated)^+      2011
Non-current assets
Property, plant and equipment               1566 583  1291291^+ 1174 405
Cost                                        1897 616  1528839^+ 1404 729
Accumulated depreciation and amortisations  (331033)    (237548) (230324)
Deferred tax                                        -            -       379
Long term ore stockpiles                            -            -     4 298
Trade and other receivables                     4 262        2 436     2 828
Mineral properties                            406 000      406 000   406 000
Total non-current assets                    1976 845  1699727^+ 1587 910
Current assets
Inventories and ore stockpiles                273 600      218 950   207 390
Trade and other receivables                   254 716      130 988   124 293
Cash and cash equivalents                     443 511      487 644   432 837
Available-for-sale financial assets             6 027        7 498     8 376
Total current assets                          977 854      845 080   772 896
Total assets                                2954 699  2544807^+ 2360 806
Equity attributable to owners of the parent 2496 952  2191266^+ 2059 782
Non-controlling interests                     155 921    111950^+    89 551
Total equity                                2652 873  2303216^+ 2149 333
Non-current liabilities
Loans from minority shareholders                3 093        2 614     2 792
Deferred tax                                   33 500     21370^+    12 874
Provision for rehabilitation                   40 888       39 809    29 795
Total non-current liabilities                  77 481     63793^+    45 461
Current liabilities
Trade and other payables                      209 428      158 903   145 750
Current tax payable                            14 917       18 895    20 262
Total current liabilities                     224 345      177 798   166 012
Total equity and liabilities                2954 699  2544807^+ 2360 806

+ The group changed its accounting policy on production-phase stripping
costs with effect from 1 January 2012. As a result, the 2011 results have
been restated (refer to 'Change in accounting policy - Production phase
stripping costs' for further details).

Property, plant and equipment  at cost increased by  US$368.8 million for  the 
nine months ended 30September 2012. This is attributed to continued  capital 
expenditure across the group's  projects and operations. Capital  expenditure 
of US$172.7 million at Loulo related primarily to decline developments at  the 
Gara and Yalea  underground mines,  as well as  stripping costs  on the  Yalea 
South pushback being deferred (refer to page 3 for further details).  US$15.9 
million was  incurred  on  capital expenditure  at  Gounkoto,  principally  in 
respect of  roads, infrastructure,  water  and crushing  facilities.  Capital 
expenditure at Kibali amounted to US$150.8 million (attributable) and  related 
primarily to work performed on the metallurgical plant (including earthworks),
open pit mining, RAP construction  and freight costs. Capital expenditure  of 
US$25.8 million was spent at the Tongon mine, primarily on metallurgical plant
and power plant engineering. The group's capital commitments at  30September 
2012  amounted  to  US$129.5  million,  mainly  related  to  Kibali  (US$114.2 

The US$54.7  million  rise  in  inventories  and  current  ore  stockpiles  is 
primarily as a result of an increase in gold inventory at Loulo, Gounkoto  and 
Tongon, due to the timing of gold shipments at quarter end resulting from  the 
annual stock take at the refinery which prevented shipments over this period.
The increase  is also  attributable to  an increase  in stores  at Tongon  and 
Kibali, due to increased demand.

The increase in current trade and other receivables of US$123.7 million during
the nine months ended 30September 2012 is substantially due to an increase in
recoverable VAT balances at Loulo, Morila  and Kibali of US$25.1 million  over 
the period.  Trade  and other  receivables  at Kibali  increased  by  US$25.8 
million following a ramp-up in  construction. The rise is further  attributed 
to the  increase  in  other  receivables  related  to  the  Gounkoto  dividend 
amounting to US$19.5 million as explained previously in the Q2 report.  Trade 
and other receivables still  include amounts relating  to disputed tax  claims 
with the State of Mali at Loulo and Morila. The group had received claims for
various taxes from the State of Mali totalling US$84.6 million, in respect  of 
the Loulo  and Morila  mines.  Having taken  professional advice,  the  group 
considers the claims to be wholly without merit or foundation and is  strongly 
defending its position, including following the appropriate legal process  for 
such disputes  within  Mali.  Both  companies  have  legally  binding  mining 
conventions which guarantee fiscal stability,  govern the taxes applicable  to 
the companies and allow for international  arbitration in the event a  dispute 
cannot be resolved in  the country. Management continues  to engage with  the 
Malian authorities at the highest level to resolve this issue.

The decrease  in  cash of  US$44.1  million  since 31  December  2011  largely 
reflects the  dividend of  US$36.7million  which was  paid to  the  company's 
shareholders in  May 2012,  as well  as the  State of  Mali's portion  of  the 
Gounkoto dividend (US$13.0 million) which was  paid in July 2012. The  strong 
cashflows from  operations  have been  invested  in the  group's  considerable 
programme of capital projects.

The increase in  deferred taxation of  US$12.1 million relates  mainly to  the 
stripping costs  that have  been deferred  at Loulo  following the  change  in 
accounting policy on 1 January 2012  (refer to 'Change in accounting policy  - 
Production phase stripping costs' for further details).

The increase  in trade  and other  payables of  US$50.5 million  for the  nine 
months ended  30  September 2012,  mainly  reflect the  effect  of  additional 
contractors and accruals at the Loulo-Gounkoto complex, as well as at  Kibali, 
in line  with  increased  production  and mining  activity,  as  well  as  the 
liability that  was recognised  in relation  to the  dividend payable  to  the 
Malian State (US$19.5 million), as explained previously in the Q2 report.

The decrease in current tax payable of US$4.0 million or 21% is the result  of 
the change in the corporate tax rate  in Mali in March 2012. The  corporation 
tax rate in Mali  has recently been  changed from 35%  to 30%. This  affected 
both the Morila  and Loulo  mines. Gounkoto is  currently in  a tax  holiday, 
following the signing of the mining convention in March 2012.


                                 CONSOLIDATED CASH FLOW STATEMENT

                                                      9 months  9 months
                                                         ended     ended
                                                        30 Sep    30 Sep
US$000                                                    2012      2011
Profit after tax                                       367 232   297 229
Income tax expense                                      38 127    38 630
Profit before income tax                               405 359   335 859
Adjustment for non-cash items                          114 755    90 398
Effects of change in operating working capital items (139667)     7 149
 Receivables                                       (133 095)  (18679)
 Inventories and ore stockpiles                     (54650)   (7042)
 Trade and other payable                              48 078    32 870
Income tax paid                                       (19872)  (18914)
Net cash generated from operating activities           360 575   414 492
Additions to property, plant and equipment           (368776) (345482)
Net cash used by investing activities                (368776) (345482)
Proceeds from issue of ordinary shares                  13 822    15 633
Dividends paid to company's shareholders              (36737)  (18 221)
Dividends paid to non-controlling interests           (13017)         -
Net cash used by financing activities                 (35932)   (2588)
Net increase in cash and cash equivalents             (44133)    66 422
Cash and cash equivalents at beginning of period       487 644   366 415
Cash and cash equivalents at end of period             443 511   432 837






Randgold  has  identified  certain  measures  that  it  believes  will  assist 
understanding of the  performance of the  business. As the  measures are  not 
defined under IFRS they may not  be directly comparable with other  companies' 
adjusted measures. The non-GAAP measures are not intended to be a  substitute 
for, or  superior to,  any IFRS  measures of  performance but  management  has 
included them as  these are  considered to  be important  comparables and  key 
measures used within the business for assessing performance.

These measures are explained further below:

Total cash costs and  cash cost per ounce  are non-GAAP measures. Total  cash 
costs and total cash  cost per ounce are  calculated using guidance issued  by 
the Gold Institute. The Gold Institute was a non-profit industry  association 
comprising  leading   gold   producers,  refiners,   bullion   suppliers   and 
manufacturers. This institute  has now  been incorporated  into the  National 
Mining Association. The  guidance was  first issued  in 1996  and revised  in 
November 1999. Total cash costs, as defined in the Gold Institute's guidance,
include  mine   production,  transport   and  refinery   costs,  general   and 
administrative costs, movement in  production inventories and ore  stockpiles, 
transfers to and from deferred stripping where relevant and royalties.  Under 
the company's accounting policies there are no transfers to and from  deferred 

Total cash cost  per ounce+  is calculated by  dividing total  cash costs,  as 
determined using the  Gold Institute  guidance, by  gold ounces  sold for  the 
periods presented.  Total  cash costs  and  total  cash cost  per  ounce  are 
calculated on a consistent basis for the periods presented. Total cash  costs 
and total cash  cost per ounce  should not  be considered by  investors as  an 
alternative to operating profit or net profit attributable to shareholders, as
an alternative to other IFRS measures or an indicator of our performance. The
data does  not  have  a  meaning prescribed  by  IFRS  and  therefore  amounts 
presented may not be comparable to data presented by gold producers who do not
follow  the  guidance   provided  by  the   Gold  Institute.  In   particular 
depreciation and amortisation would be included in a measure of total costs of
producing gold under IFRS, but are not included in total cash costs under  the 
guidance  provided  by  the  Gold  Institute.  Furthermore,  while  the  Gold 
Institute has provided a  definition for the calculation  of total cash  costs 
and total cash cost per ounce, the calculation of these numbers may vary  from 
company to  company  and may  not  be  comparable to  other  similarly  titled 
measures of other companies. However, Randgold believes that total cash  cost 
per ounce  is a  useful indicator  to  investors and  management of  a  mining 
company's  performance  as   it  provides   an  indication   of  a   company's 
profitability and  efficiency,  the trends  in  cash costs  as  the  company's 
operations mature,  and a  benchmark of  performance to  allow for  comparison 
against other companies.

Cash operating cost+  and cash  operating cost  per ounce+  are calculated  by 
deducting royalties from total cash costs.  Cash operating cost per ounce  is 
calculated by  dividing cash  operating  costs by  gold  ounces sold  for  the 
periods presented.

Gold salesis a non-GAAP measure. It represents the sales of gold at spot  and 
the gains/losses on  hedge contracts  which have  been delivered  into at  the 
designated maturity date. It excludes  gains/losses on hedge contracts  which 
have been rolled forward to match future sales. This adjustment is considered
appropriate because no cash is received/paid in respect of these contracts.

Profit from mining  activity+ is  calculated by subtracting  total cash  costs 
from gold sales for all periods presented. 

Gold on handrepresents gold in doré at the mines multiplied by the  prevailing 
spot gold price at the end of the period.

+ The group  changed its  accounting policy on  production phase  stripping 
costs with effect from  1 January 2012.  As a result,  the 2011 results  have 
been restated  (refer  to 'Change  in  accounting policy  -  Production  phase 
stripping costs' for further details).

The following  table  reconciles  total  cash costs  and  profit  from  mining 
activity as non-GAAP measures, to the information provided in the statement of
comprehensive income,  determined in  accordance with  IFRS, for  each of  the 
periods set out below:

NON-GAAP                             Quarter Quarter Quarter 9 months 9 months
                                       ended   ended   ended    ended    ended
                                      30 Sep  30 Jun  30 Sep   30 Sep   30 Sep
US$000                                  2012    2012    2011     2012     2011
Gold sales on spot                   318 332 346 563 308 822  936 232  815 612
Elimination of intercompany sales      1 537 (1204)     788      775    2 163
Gold sales                           319 869 345 359 309 610  937 007  817 775
Mine production costs                117 318 102 939 101 719  317 465  270 099
Movement in production inventory

and ore stockpiles                  (16357)   5 946   (382) (21190)   14 481
Transport and refinery costs             620     575     546    2 055    1 306
Royalties                             16 185  18 218  14 611   47 864   37 783
Other mining and processing costs     21 987  21 200  16 101   60 247   48 481
Elimination of intercompany sales      3 854   2 745   2 552    8 408    1 837
Total cash costs                     143 607 151 623 135 147  414 849  373 987
Profit from mining activity          176 262 193 736 174 463  522 158  443 788
Ounces sold                          194 969 215825 181 017  570 015  530 490
Total cash cost per ounce sold*          737     703     747      728      705
Cash operating cost per ounce sold*      654     618     666      644      634
Gold on hand at period end*           33 025   7 965   8 748   33 025    8 748

* Refer to explanation of non-GAAP measures provided.



                                                               Total equity        Non-
                         of   Share   Share     Other Retained attributable controlling    Total
                   ordinary capital premium reserves* earnings    to owners   interests   equity
                     shares  US$000  US$000    US$000   US$000    of parent      US$000   US$000
Balance - 31 Dec     91 082           1 362                                                1 845
2010                    170   4 555     320    31 596  393 570    1 792 041      53 905      946
Fair value
movement on
financial assets          -       -       -   (8372)        -      (8372)           -  (8372)
income/(expense)          -       -       -   (8372)        -      (8372)           -  (8372)
Net profit for the
period                    -       -       -         -  261 583      261 583      35 646  297 229
income for the
period                    -       -       -   (8372)  261 583      253 211      35 646  288 857
payments                  -       -       -    17 134        -       17 134           -   17 134
Share options
exercised           460 600      27  15 606         -        -       15 633           -   15 633
Exercise of
options previously
expensed under
IFRS 2                    -       -   4 336   (4336)        -            -           -        -
Shares vested^#       6 400       -     448     (448)        -            -           -        -
Dividend relating
to 2010                   -       -       -         - (18221)     (18221)           - (18221)
Lapsed options
originally issued
on acquisition of
Moto                      -       -       -      (16)        -         (16)           -     (16)
Balance - 30 Sep     91549           1382                                                2149
2011                    170   4 582     710    35 558  636 932    2059 782      89 551      333
Balance - 31 Dec     91717           1386                                                2303
2011 (restated)^+       070   4 587     939    40 531  759 209    2191 266     111 950      216
Fair value
movement on
financial assets          -       -       -   (1837)        -      (1837)           -  (1837)
income/(expense)          -       -       -   (1837)        -      (1837)           -  (1837)
Net profit for the
period                    -       -       -         -  310 244      310 244      56 988  367 232
income for the
period                    -       -       -   (1837)  310 244      308 407      56 988  365 395
payments                  -       -       -    19 636        -       19 636           -   19 636
Share options
exercised           257 298      13  13 809         -        -       13 822           -   13 822
Exercise of
options previously
expensed under
IFRS 2                    -       -   3 427   (3427)        -            -           -        -
Shares vested^#      76 285       3   4 643   (4088)        -          558           -      558
Dividend relating
to 2011                   -       -       -         - (36737)     (36737)           - (36737)
interest share of
Gounkoto dividend         -       -       -         -        -            -    (13017) (13017)
Balance - 30 Sep     92050           1408              1032                             2652
2012                    653   4 603     818    50 815      716    2496 952     155 921      873

+ The group  changed its  accounting policy on  production phase  stripping 
costs with effect from  1 January 2012.  As a result,  the 2011 results  have 
been restated  (refer  to 'Change  in  accounting policy  -  Production  phase 
stripping costs' for further details).

* Other reserves includes the cumulative charge recognised under IFRS 2 in
respect of share option schemes (net  of amounts transferred to share  capital 
and share premium)  and the mark-to-market  valuation of derivative  financial 
instruments designated as cash  flow hedges, as well  as the foreign  currency 
translation reserve and the movements in current available-for-sale  financial 

# Restricted shares  were issued  as remuneration  to executive  directors, 
non-executive directors and  senior management.  Shares were  also issued  to 
executive directors  following approval  of their  2011 annual  bonuses.  The 
transfer between 'other reserves' and 'share premium' in respect of the shares
vested represents the cost calculated in accordance with IFRS 2.




The group is subject  to a variety  of risks and  uncertainties which are  the 
result of not only the  business environment in which  we operate but also  of 
other factors  over  which  we  have  little or  no  control.  The  board  is 
responsible for the group's systems of risk management and internal control as
well as reviewing their operational effectiveness on a regular basis.

The group's business  units and  functions assess the  potential economic  and 
non-economic consequences of their respective  risks using a group level  risk 
standard. Principal risks  and uncertainties are  identified when the  board, 
through the business  unit or function  determines the potential  consequences 
could be  materially  significant  at a  group  level  or where  the  risk  is 
connected and may trigger  a succession of events  that, in aggregate,  become 
material to the group. Once  identified, each principle risk and  uncertainty 
is reviewed by the relevant internal experts and by the board.

The following describes the main known principal risks and uncertainties  that 
could materially affect the  group. The group's  strategy takes into  account 
known risks but there may be additional  risks unknown to the group and  other 
risks, currently believed to be immaterial, which could develop into  material 
risks. The risk factors outlined below omit the management detail on how each
risk is managed and mitigated and the potential financial impact of the  risks 
on the group.

A full analysis of  the group's risk  factors as well  as its risk  management 
processes are documented on pages 118 to  124 of the 2011 Annual Report  which 
should be considered  along with items  3, 11, 17  and 18 of  the 2011  Annual 
Report on  Form-20F,  both of  which  are  available on  the  group's  website 
www.randgoldresources.com.  As  we   operate  in  a   dynamic  and   changing 
environment risks are  continually evaluated to  ensure the business  achieves 
its strategic objectives, however management  believe the principle risks  and 
uncertainties have  not  changed significantly  from  those described  in  the 
Annual Report and the Annual Report  Form 20F. A formal annual risk  analysis 
and review is  performed across the  business out of  which the following  key 
risks were identified.

The principal risks and uncertainties should be considered in connection  with 
any forward looking statements in  this document and the cautionary  statement 

Gold price volatility         Earnings and cash flow volatility from sudden or
                              significant declines in the gold price.
Country risk                  Inadequate monitoring  of  in-country  political 
                              instability and changes to political environment
                              may impact the ability to sustain operations.
Corporate, social and         Poor management of stakeholder communication and
environmental responsibility  expectations   with   a   lack   of    community 
                              development activities may lead to the inability
                              to sustain operations in the area and impact the
                              group's ability to expand into other regions.
Supply routes                 Due to the remote location of the operations the
                              disruption of supply route may cause delays with
                              construction and mine activities.
Production and capital cost   Failure to  control  cash cost  per  ounce  will 
control                       result in reduced profits. Failure or inability
                              to monitor capital  expenditure and progress  of 
                              capital projects may result in financial  losses 
                              and overspend on projects.
Insufficient liquidity,       The group may be required  in the long term,  to 
inappropriate financial       seek funding from the global credit and  capital 
strategy, poor treasury       markets to develop  its properties.  Volatility 
management and inability to   and uncertainty in those markets could adversely
access funding from global    affect the group's operations, treasury position
credit and capital markets    and the ability to obtain financing and  capital 
                              resources    required    by    the     business. 
                              Inappropriate  treasury   management   of   the 
                              group's surplus  cash,  counter  party  risk  or 
                              significant  changes  in  exchange  rates  could 
                              adversely  affect  the  group's  operations  and 
In country tax regimes        Failure to  adapt or  react  to changes  in  tax 
                              regimes and regulations may result in fines  and 
                              financial   losses.   Inability   to    enforce 
                              legislation  over  tax  or  incorrectly  applied 
                              legislation may  result in  lengthy  arbitration 
                              and loss of profits.
Sustained resource and        The group's  mining  operations may  yield  less 
exploration failure           gold under  actual  production  conditions  than 
                              indicated by its gold reserve figures, which are
                              estimates based  on  a  number  of  assumptions, 
                              including   mining    and   recovery    factors, 
                              production costs and gold price.
Environmental, health, safety Failure to  maintain environmental,  health  and 
and security incident         safety  standards'  may  result  in  significant 
                              environmental    or    safety    incidents    or 
                              deterioration in  safety  performance  standards 
                              leading to loss of  life or significant loss  of 
                              time and disruption or damage to operations.
Risks associated with         The group's underground projects are subject  to 
underground mining            the risks  associated  with  underground  mining 
                              which may affect the profitability of the group.
Lack of identification of new Lack  of  identification   of  new   exploration 
exploration targets           targets may lead  to a  loss of  revenue and  an 
                              inability   to   grow    and   meet    strategic 
                              objectives.  Exploration  and  development  are 
                              costly activities with no guarantee of  success, 
                              but are  necessary  for  future  growth  of  the 
Failure to attract and retain The loss  of  any  key  staff  or  the  lack  of 
its key staff and poor        internal succession planning and the failure  to 
succession planning           attract appropriate staff  within the group  may 
                              cause short term disruption to the business  and 




The company has again made great progress on all its organic growth  projects, 
and in  particular at  Kibali  where development  is  expected to  reach  full 
capacity in the fourth  quarter with first gold  still targeted for 2013  year 
end. At Tongon mill throughput has been increased and the focus going forward
will be on stabilising the power interruptions and improving the metallurgical
recoveries. Fourth  quarter  production  for  the group  is  forecast  to  be 
significantly higher than the third quarter. However, the underperformance of
Tongon suggest  that  the annual  production  will be  at  the bottom  of  our 
guidance set at the start of the year and consequently costs are also expected
to be higher than  targeted with total cash  costs of approximately  US$700/oz 

As is customary,  the company will  be finalising its  2013 budget during  the 
fourth quarter and guidance for 2013 will be given with the year end results.
At this stage the five year production profile is expected to reflect a modest
improvement from previous  guidance. However, the  anticipated cash cost  and 
capital profile is expected  to reflect the change  to the underground  mining 
sequence at Loulo, the impact  of the pit 4S  pushback at Morila, should  this 
project be approved, and the power supply issues at Tongon. Managing our cost
profile as  well as  ensuring that  we leverage  our successes  in the  skills 
development of national management teams, will remain our priority. The group
remains focused on  its strategy  to deliver  value for  all its  stakeholders 
through discovery and development of world class orebodies and has pipeline of
high quality  projects and  exploration  targets. Notwithstanding  this  core 
strategy,  management  routinely  reviews  corporate  and  asset   acquisition 
opportunities, focused on Africa.

The directors confirm to the best of their knowledge that:

a) These third quarter results have  been prepared in accordance with IAS  34 
as adopted by the European Union; and

b) The interim management  report includes a fair  review of the  information 
required by the FSA's Disclosure and Transparency Rules (4.2.7R and 4.2.8R).

By order of the board

D M Bristow G P Shuttleworth

Chief Executive Financial Director

7 November 2012



In the 17  years of its  existence, Randgold has  discovered five  world-class 
gold deposits, the most recent being Gounkoto in 2009. "Given that we've made
these discoveries at the rate of one every three to five years, we're  working 
hard to  find  the  next  big one,"  says  general  manager  exploration  Paul 

The third quarter  of the year,  which coincides with  the West African  rainy 
season, is  the  time when  the  exploration team  turns  from field  work  to 
modelling,  reviewing,  analysing   and  prioritising   existing  targets   in 
preparation for the new field  season. The aim is to  build up and fine  tune 
Randgold's prospect inventory  from which  the next  world-class discovery  is 
expected to emerge.

"We've got plenty to  work with," says Harbidge.  "At Kibali we're  exploring 
the extensions to the known orebodies as well as auditing the extensive target
inventory we  acquired along  with the  Kibali project.  This could  yield  a 
million resource ounces  or more, and  we'll be reporting  on progress in  our 
end-of-year resource and reserve statement. We're also looking further afield
on this vast lease area, which is both highly prospective and underexplored."

At Tongon, near-mine exploration is  expected to replace depleted ounces.  An 
infill diamond drilling  programme aimed  at promoting  inferred to  indicated 
resources has been completed and the data is now being modelled for an updated
resource estimate. At Gounkoto, infill drilling has started for a feasibility
study on an underground mine.

In Senegal, Randgold's Massawa is one of the largest undeveloped orebodies  in 
Africa at 3 million ounces.  Exploration continues to find additional  ounces 
as well as to improve Randgold's understanding of this complex deposit.

"It's become clear  that Massawa will  need a pressure  oxidation process  and 
this is  very  power-intensive.  We're in  discussions  with  the  Senegalese 
government about the possibility  of securing more  affordable grid power  for 
the project and, on a  broader front, we're also  talking to Senegal and  Mali 
about a public/private initiative to develop  a West African power grid  which 
could supply not only Massawa  but also the Loulo-Gounkoto complex,"  Harbidge 

Meanwhile, the next step at Massawa will be pilot plant testwork to  determine 
optimal operational parameters. This is scheduled for 2013.


Randgold Resources' cash and gold on hand  stood at US$477 million at the  end 
of Q3, up from Q2's US$462  million, despite expenditure of US$130 million  on 
capital investments during the  quarter. This included  US$70 million on  the 
Kibali  mine  development  project  and   US$50  million  on  the   continuing 
development of Loulo's underground mines.

Randgold CFO Graham Shuttleworth says this  shows the overall strength of  the 
company's business, which  generated US$127 million  net cash from  operations 
during the quarter and US$361 million for the year to date. It also  reflects 
the operations' disciplined and proactive management of costs.

"While group capital expenditure will remain high until the end of 2013, we're
confident that Randgold can fully fund its future growth, even at gold  prices 
considerably below the current level," he said.


Tongon increased its mill throughput and held production steady in Q3  despite 
the disruption caused by frequent interruptions of the power supply from  Côte 
d'Ivoire's national power grid.

General manager Luiz Correia estimates that short but persistent power outages
have cost the  mine almost  50 000  ounces of  gold in  lost production  since 
Tongon was connected to  the grid last  December and have  also had a  serious 
impact on its costs.

"What is  so frustrating  is  that the  power  issue, which  we're  vigorously 
addressing, has masked the significant progress made at Tongon during the last
quarter. Mill availability was increased from 79.4% in Q2 to 85.7% in Q3  and 
is on track to reach the target  of 92%, despite the process upsets caused  by 
the erratic power supply."

"We've successfully mined  through the  transitional zone of  the orebody  and 
steadily  increased  the  throughput  rate.  Also  during  this  quarter,  we 
installed and  commissioned a  third  oxygen plant  which will  contribute  to 
improving the recovery rate. All in all, we're steadily clawing our way  back 
to plan," he said.

To solve the power problem, a  capacitor bank is being installed to  stabilise 
the  incoming  supply  and  an  additional  five  generator  sets  are   being 
commissioned to counter the  expected power outages.  Both these actions  are 
scheduled for completion  by the  end of this  year. The  power house  feeder 
arrangement is  also being  configured  so that,  if necessary,  one  complete 
milling stream  and downstream  recovery  circuit can  be  run on  the  diesel 
generator sets while  the balance of  the plant remains  on grid power.  This 
will minimise the impact of power interruptions and allow the plant to achieve
its targets while the national energy authority resolves its power  production 
issue. In  addition,  Tongon and  the  Ivorian government  are  currently  in 
discussion regarding the supply of more consistent power to the mine.

During the injury-free  quarter, Tongon achieved  its ISO 14001  environmental 
accreditation and is  on track  to pass  the first  phase of  its OHSAS  18001 
safety accreditation by the beginning of 2013.


The careful replanning of Loulo's underground mines started paying off in  the 
third quarter when the operation's production  soared from Q2's 38 227  ounces 
to 68 083 ounces, with total cash cost per ounce dropping by 8% to US$716/oz.

Tonnes mined and processed were mostly  from the two underground mines,  Yalea 
and Gara, where once  again a steady increase  in stoping and development  was 
achieved during the quarter.

With Loulo regaining its place as  the complex's major producer, Gounkoto  was 
able to  feed  lower-grade  stockpile  material during  the  wet  season  when 
handling oxide ore from the  Yalea pushback was difficult. Construction  work 
at Gounkoto  is  now complete  and,  following  its maiden  dividend  paid  to 
shareholders in  July, a  second dividend  of US$69  million was  declared  in 

"As we've seen again this quarter,  the ability to exploit multiple  orebodies 
on the two adjoining leases gives management some very valuable  flexibility," 
says group general manager evaluation Rod Quick.

Given the high gold price and a  plant which is running comfortably in  excess 
of its designed throughput, Loulo was able to process all ore from Yalea, Gara
and Gounkoto as mined, with no high-grading and very little stockpiling.

The next big focus at Loulo is on the introduction of cemented aggregate  fill 
as an  interim  measure  to  allow limited  mining  of  the  high-grade  zones 
underground while  construction of  the paste  backfill plant  is  proceeding. 
Scheduled for completion by the end of 2013, this will provide full access to
the high-grade ore at Yalea and Gara.


Randgold eyes  its fourth  underground mine  of  the group  and third  in  the 
Loulo/Gounkoto complex in the northern depth extension below the Gounkoto open

This is testimony to  the quality of  the orebodies in  the region which  have 
already produced the Yalea and Gara underground mines on the Loulo permit.  A 
prefeasibility  geotechnical  review  and   interim  resource  estimate   have 
confirmed  the  potential  for   an  underground  mine   at  Gounkoto  and   a 
prefeasibility study  is currently  underway  involving open  pit  underground 
interface studies,  geotechnical  rock  mass  classification  studies,  mining 
method analysis followed by mine, vent, backfill and costing studies.

Additional drilling to convert the remaining portion of the estimated resource
of more than one million ounces at above 5g/t to the indicated classification,
is scheduled for completion this  year and expected in  to be included in  the 
updated mineral resource declaration early next year.

Assuming a positive  result to  the prefeasibility study,  a full  feasibility 
study will be  scheduled for  completion by  the end of  2013 in  line with  a 
planned start of the decline in 2014.


Indicative of  the steady  progress being  made with  the development  of  the 
Kibali gold project, two  giant 7 megawatt mills  are currently being  trucked 
halfway across Africa, from the east coast port of Mombasa to the mine site at
Doko in the north east of the Democratic Republic of Congo.

The mills, a key component of the  production plant at Kibali, are each  being 
transported in three massive sections. Each mill weighs 170 tonnes and is 9.5
metres long and 6.1 metres in diameter  and when installed will be capable  of 
milling a combined 7.2  million tonnes a year.  Manufactured in Europe,  they 
were landed at the port of Mombasa on 20 October and are due to arrive at  the 
mine site at the end of November after a 1 800 kilometre road trip. The mills
are expected to be set on their foundations at the plant early next year.

In the meantime, open pit mining is already underway at Kibali. In  addition, 
the boxcut  for  the project's  underground  twin decline  section  is  almost 
complete and in the fourth quarter of this year work is scheduled to start  on 
the development of the  twin declines and the  sinking of the vertical  shaft. 
The relocation programme,  designed to  rehouse the villagers  from the  mine 
area in the new model Kokiza village, is also progressing rapidly. New houses
are being built at  the rate of 45  a week and more  than 1 000 families  have 
been resettled to  date. This  means that the  whole mine  footprint has  now 
effectively been cleared for development.

Kibali is  being  developed by  project  co-owner Randgold,  which  will  also 
operate  the  mine.  Randgold  already  operates  the  Morila  mine  and  the 
Loulo-Gounkoto complex in Mali as well as the Tongon mine in Côte d'Ivoire.

Randgold chief executive  Mark Bristow  said that once  in production,  Kibali 
would prove an enormous boon to  the DRC, generating economic welfare  through 
the payment of dividends and taxes to the State, which has a 10% stake in  the 
project, as well as creating jobs and a demand for support services for  local 

"It's a great  example of  what can  be achieved  in Africa  when an  investor 
friendly government partners with a mining  company in a long term  commitment 
to the sustainable creation and sharing of wealth," he said.


Randgold chief executive Mark Bristow has warned African governments that they
risk damage to  their economies by  trying to squeeze  quick returns from  the 
mining companies in their countries. Randgold has gold mines in Mali and Côte
d'Ivoire and is currently developing the giant Kibali gold project in the DRC.

Speaking at the recent  DRC's Mining and Energy  Indaba, Bristow said  current 
moves in a number  of African countries  to amend mining  codes on terms  less 
favourable to the mining companies were dangerously short sighted as they  did 
not take into account the increased  risk this might present to the  long-term 
sustainability of the resources industry and its ability to contribute to  job 
creation and economic development.

Bristow noted that when  the Kibali gold mine  pours its first gold  scheduled 
for the end of next year,  it would rank as one  of the largest gold mines  in 
Africa and would be an economic boom to the whole of the DRC.

"To achieve that,  we need the  support of  all our stakeholders  in the  DRC, 
including the government, as well as of our international investors," he said.

"Over a projected lifetime of 16 years,  it is anticipated that more than  50% 
of the net pre-tax value generated by  the project will be distributed to  the 
State in the form of  taxes, royalties and dividends.  The DRC state will  in 
fact receive more than  the other shareholders who  are financing 100% of  the 
project. This figure does not reflect the jobs it will create or the money it
will spend  with local  businesses.  What's important  to  note is  that  the 
estimates from our  feasibility study are  based on the  DRC's current  mining 
code and fiscal parameters. Any drastic changes to these will have a negative
impact on costs, profits and even the life of the mine."

He said that  increasing the tax  burden on those  who had taken  the risk  of 
investing in the  DRC would  not only  damage the  country's fledgling  mining 
industry, it  would  also  discourage future  investors  from  developing  new 
operations which would  make profits,  pay taxes and  provide employment.  "I 
need hardly tell you how damaging that would  be to the growth of the DRC  and 
its economy," he said.


Randgold and  other gold  mining companies  in Mali  have donated  a total  of 
US$735 000 in  emergency funding  to avert an  interruption of  the Mass  Drug 
Administration (MDA) programme fighting a range of neglected tropical diseases
(NTDs) endemic to that country.

The donations by Randgold Resources,  Avion Gold including personal  donations 
by its shareholders  Forbes & Manhattan  and executives John  Begeman and  Don 
Dudek, AngloGold Ashanti,  IAMGOLD, Resolute Mining,  Gold Fields and  African 
Mining  &  Exploration,  were  made  to  The  End  Fund,  a   non-governmental 
organisation committed to providing access to treatment for these NTDs.

Since the inception of the programme in 2007, with funding support provided by
USAID,  significant  progress  has  been  made  in  reducing  the   incidence, 
prevalence and  intensity of  these  diseases among  Mali's population  of  11 
million. However,  the coup  in  Mali earlier  this  year prompted  USAID  to 
suspend its funding, threatening the continued implementation of the treatment

NTDs are a group of  debilitating conditions, primarily found in  impoverished 
areas,  which   can  cause   blindness,  chronic   pain,  severe   disability, 
disfigurement and malnutrition. They reduce productivity and can cripple  the 
country's potential  for social  development  and economic  growth.  Although 
there are  inexpensive,  safe and  effective  treatments available  for  NTDs, 
eradicating them requires consecutive treatments and post-endemic surveillance
for many years.


Randgold has held an open day at the Kibali gold project in the DRC to  update 
community  leaders,  including  religious   leaders,  businessmen  and   local 
administrators, on the  progress that has  been made with  development of  the 

Mark Bristow,  chief  executive  of  project  developer  and  45%  shareholder 
Randgold, said  the  open  day  was  organised  in  line  with  the  company's 
philosophy of active and transparent engagement with the community.

The event was used to update attendees on the overall development, the current
status of the relocation action plan, which involves the resettlement of  some 
14 villages to the new  model town of Kokiza,  the job creation potential  and 
business opportunities  that  will be  created  and other  community  projects 
currently being developed. Kokiza will ultimately accommodate 3 800 families,
and construction of all their homes,  as well as a civic infrastructure  which 
will include schools, clinics, shops and churches, is progressing rapidly.

Senior management also used the day as an opportunity to address queries  from 
delegates and to  share with  them the challenges  encountered, which  Bristow 
said  had  been  overcome  in  large  measure  because  of  the  support   and 
co-operation Randgold had  received from  the community  and the  authorities. 
Bristow said Kibali was  a national asset, of  which the DRC government  owns 
10%, and encouraged the community to take full advantage of the many  economic 
opportunities it will generate.

The completed Kibali  operation will  comprise an  integrated underground  and 
open pit  mine,  a twin-circuit  sulphide  and  oxide plant  with  a  designed 
throughput of 6 million tonnes per annum and four self-constructed  hydropower 
stations as well as a standby  high-speed thermal power generator for  back-up 
during the dry season.


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WEBSITE www.randgoldresources.com

historical information contained  herein, the matters  discussed in this  news 
release are forward-looking statements  within the meaning  of Section 27A  of 
the US Securities Act of  1933 and Section 21E  of the US Securities  Exchange 
Act of 1934, and applicable Canadian securities legislation.  Forward-looking 
statements include, but  are not limited  to, statements with  respect to  the 
future price of gold,  the estimation of mineral  reserves and resources,  the 
realisation of mineral reserve estimates,  the timing and amount of  estimated 
future production,  costs of  production,  reserve determination  and  reserve 
conversion  rates.  Generally,  these   forward-looking  statements  can   be 
identified by the use of forward-looking terminology such as 'will',  'plans', 
'expects'  or  'does  not  expect',  'is  expected',  'budget',   'scheduled', 
'estimates', 'forecasts', 'intends', 'anticipates'  or 'does not  anticipate', 
or 'believes', or variations of such  words and phrases or state that  certain 
actions, events  or  results 'may',  'could',  'would', 'might'  or  'will  be 
taken', 'occur' or 'be achieved'. Assumptions upon which such forward-looking
statements are based  are in turn  based on  factors and events  that are  not 
within the control of Randgold and there is no assurance they will prove to be
correct. Forward-looking statements are subject  to known and unknown  risks, 
uncertainties and other factors  that may cause the  actual results, level  of 
activity, performance or achievements of  Randgold to be materially  different 
from those expressed or implied by such forward-looking statements,  including 
but not limited  to: risks related  to the integration  of Randgold and  Moto, 
risks related to mining operations, including political risks and  instability 
and risks  related  to international  operations,  actual results  of  current 
exploration  activities,  conclusions  of  economic  evaluations,  changes  in 
project parameters as plans continue to  be refined, as well as those  factors 
discussed in the section entitled  'Risk Factors' in Randgold's Annual  Report 
on Form 20-F for the year ended 31  December 2011 which was filed with the  US 
Securities and Exchange  Commission (the  'SEC') on 31  March 2012.  Although 
Randgold has attempted to identify  important factors that could cause  actual 
results  to  differ  materially   from  those  contained  in   forward-looking 
statements, there  may  be other  factors  that cause  results  not to  be  as 
anticipated, estimated  or intended.  There  can be  no assurance  that  such 
statements will prove  to be  accurate, as  actual results  and future  events 
could  differ   materially  from   those  anticipated   in  such   statements. 
Accordingly, readers  should  not  place undue  reliance  on  forward-looking 
statements.  Randgold  does  not  undertake  to  update  any  forward-looking 
statements herein, except in accordance with applicable securities laws.

CAUTIONARY NOTE TO US INVESTORS: The  SEC permits companies, in their  filings 
with the  SEC, to  disclose only  proven  and probable  ore reserves.  We  use 
certain terms in  this release,  such as 'resources',  that the  SEC does  not 
recognise and strictly  prohibits us from  including in our  filings with  the 
SEC. Investors are  cautioned not  to assume  that all  or any  parts of  our 
resources will ever be  converted into reserves which  qualify as 'proven  and 
probable reserves' for the purposes of the SEC's Industry Guide number 7.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


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