Randgold May Exceed Gold Output Target This Year on Congo Mine

Randgold Resources Ltd. (RRS), which mines the precious metal in Africa, may surpass its target output for the year as production at its new mine in the Democratic Republic of Congo runs ahead of schedule.

Randgold is aiming for a full-year production of 1.13 million ounces to 1.2 million ounces. The $2 billion Kibali mine in Congo started last year is producing ahead of the estimated 550,000 ounce run-rate, Chief Executive Officer Mark Bristow said today in an interview.

“We’re well within the range,” Bristow said. “We might nudge it a little bit above the top end.”

Randgold, which also operates mines in Mali and the Ivory Coast, developed the Kibali mine with partner AngloGold Ashanti (ANG) Ltd. The mine exported its first gold ahead of production schedule and forecasts last year.

Randgold earlier reported first-quarter profit rose 6.7 percent to $74.3 million, while sales rose 17 percent to $362.9 million. The company produced 283,763 ounces in the quarter, at an average cost of $685 an ounce.

Randgold shares slipped 0.7 percent to 4,669 pence by 8:46 a.m. in London.

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To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net

To contact the editors responsible for this story: John Viljoen at jviljoen@bloomberg.net Indranil Ghosh, Tony Barrett

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