Randgold Resources Ltd., a miner of the precious metal in Africa, expects its gold production to increase as much as 22 percent next year as output in Mali and Ivory Coast rises. The shares surged to a record.
Output may jump to 850,000 ounces to 900,000 ounces in 2012 from a target of 740,000 ounces to 760,000 ounces this year, Chief Executive Officer Mark Bristow said today in an interview in London. “We’re forecasting a significant step-up,” he said.
Gold producers are boosting output to benefit from prices that rose to records this year as investors sought a haven from Europe’s sovereign-debt crisis. Randgold, which produced 506,476 ounces in the first nine months of 2011, is targeting annual output of 1.2 million ounces by 2015 after production starts at the Kibali mine in the Democratic Republic of Congo in 2013.
The company “has an impressive growth profile that if successful will place the group within reach of the largest gold plays by production globally,” Charles Cooper, an analyst at Oriel Securities Ltd. in London, wrote today in a note to investors.
Randgold climbed 7.4 percent to 7,235 pence by the close in the London, the steepest gain since Aug. 8 and the highest price since the shares were listed in 1997.
Net income more than quadrupled to $106.8 million in the third quarter from $23.6 million a year earlier, the London-based company said earlier in a statement. Gold sales more than doubled to $309.6 million as prices rose and output increased.
Gold for immediate delivery averaged a record $1,706.38 an ounce in the quarter, compared with $1,227.73 a year earlier.