Randgold Resources- 1st Quarter Results and update

Randgold Resources- 1st Quarter Results and update 
LONDON -- (Marketwired) -- 05/02/13 --  Randgold Resources (LSE: RRS)
(NASDAQ: GOLD) 


 
 
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
NASDAQ Trading Symbol: GOLD
 
OPTIMISED BUSINESS PLAN KEEPS RANDGOLD'S GROWTH STRATEGY ON TRACK
 
London, 2 May 2013 - A planned decrease in the grade mined at
Gounkoto and a reduction in recoveries due to copper-rich ore from the
Yalea South pit pushback had a greater than expected impact on the
Loulo-Gounkoto complex's performance in the first quarter of the year,
but Randgold Resources says its growth strategy remains intact.
 
The company says it reacted promptly to the recent drop in the gold
price, and has reviewed all its operations and projects, with a focus
on managing cashflows. At Loulo-Gounkoto, the review has resulted in a
change in the mining plan, which reduces the expenditure on capital and
operational development of the underground mines, as well as the
build-up of lower grade stockpiles, while efficiently feeding the ore
mined to the plant. The net effect is a small reduction in grade, and
consequently the complex has reduced its anticipated production for the
year from 590 000 to 560 000 ounces. Capital expenditure and working
capital tied up in stockpiles have each been reduced by about
US$20 million.
 
Loulo-Gounkoto's reduced contribution and higher costs, a larger than
usual amount of gold unsold at the end of the quarter and the lower
gold price were reflected in Randgold's Q1 results, announced today.
Production of 199013ounces was down 7% quarter on quarter and profit
dropped by 43% to US$81.6 million.
 
Elsewhere the company's Tongon mine in Cote d'Ivoire improved its
performance across the board, boosting gold production by 15% on the
back of a stabilised power supply and increased throughput and
efficiencies, while the Morila joint venture beat its production and
cost targets. The development of the Kibali gold project in the
Democratic Republic of Congo continued to progress rapidly towards its
goal of first gold production before the end of this year. As part of
the business review, the project has rescheduled a portion of the work
related to the sulphide stream, planned for the cur
rent year, to early
2014. This is not expected to impact the forecast production schedule,
but reduces the peak funding requirement in this year. Consequently
capital expenditure on the project in 2013 is now estimated at
approximately US$700 million.
 
Chief executive Mark Bristow said notwithstanding the revised plan at
Loulo-Gounkoto, the company's forecast annual production and cash costs
remained within its previous guidance. Its solid business plan was
based on realistic assumptions and bolstered by Randgold's secure long
term growth capability and reserves that were estimated at a
US$1 000 per ounce gold price."While Randgold remains strongly placed to
sustain its profitability under any realistically conceivable gold price
scenario, we have nevertheless reviewed each operation's plans in the
light of the recent drop in the price, making adjustments where necessary
to ensure we manage our cashflow given this year's large capital spend.
At Kibali, the rescheduled capital expenditure will reduce the peak
Funding requirement without materially affecting the production profile
or putting cash flow generation at risk," he said."In the meantime, the
Loulo-Gounkoto complex is getting back to planned grade, recovery and
production levels, Tongon continues to improve and the recently approved
pit pushback project at Morila, which will extend that operation's life
by two years, is scheduled to start this quarter."
 
RANDGOLD ENQUIRIES:
 
Chief Executive     Financial Director     Investor & Media Relations
Mark Bristow        Graham Shuttleworth    Kathy du Plessis
+44 788 071 1386    +44 1534 735 333       +44 20 7557 7738
+44 779 775 2288    +44 779 771 1338       Email: randgold@dpapr.com
 
Website: www.randgoldresources.com
 
REPORT FOR THE FIRST QUARTER ENDED 31 MARCH 2013
 
 * Gold production down quarter on quarter but up on corresponding
   quarter of last year
 * Group reviews business plan to adapt to drop in gold price but
   remains within guidance
 * Profit and EPS down quarter on quarter and year on year
 * Loulo continues to deliver from underground
 * Gounkoto mines through lower grade section in line with plan
 * Tongon makes encouraging progress on all fronts
 * Kibali on track and readies for operation
 * All operations post zero LTIs and Kibali shows improvement in LTIFR
 * Randgold sticks to US$1 000/oz reserve price and replaces depleted
   ounces at higher grade
 * Exploration team expands its footprint across African goldfields
 * Shareholders approve 25% increase in dividend
 * Randgold leads mining industry in supporting the humanitarian effort
   in Mali
 
Randgold Resources Limited ('Randgold') had 92.2 million shares in
issue as at 31 March 2013.
 
Click on, or paste the following link into your web browser, to view
the associated PDF document.
 
http://www.rns-pdf.londonstockexchange.com/rns/8136D_1-2013-5-1.pdf
 
                    This information is provided by RNS
          The company news service from the London Stock Exchange
 
END

  
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