Randgold Resources Ltd., a producer of the metal in Africa, rose the most in more than a month in London trading after record production at its Mali mine propelled earnings beyond analyst expectations.
Randgold climbed as much as 8.9 percent, the steepest intraday gain since Sept. 19, and traded at 5,005 pence by 10:42 a.m. Two-thirds of the three-month daily average volume of shares had been traded. Randgold reported earnings per share of 88 cents for the third quarter, compared with the 67 cent average estimate of eight analysts surveyed by Bloomberg.
Gold production rose 14 percent from a year earlier to 233,677 ounces as volumes at the Loulo-Gounkoto gold mine in Mali increased 27 percent, countering a 3.2 percent drop at Tongon in Ivory Coast. Net income fell 21 percent to $81.2 million as the price of bullion declined.
This was an “excellent quarter from Randgold and although Tongon appears to have had another sub-par quarter, the excellent performance at Loulo has offset this,” Nomura Holdings Inc. said in a note to investors.
Randgold is increasing production at its Loulo mine in Mali as well as developing Kibali in the Democratic Republic of Congo. The company, which is targeting 900,000 ounces to 950,000 ounces of gold this year, said it may reach a 2015 target of 1.2 million ounces as early as next year.
“Our target for 2015 was to break 1.2 million ounces, we run the risk of getting there next year,” Chief Executive Officer Mark Bristow said in an interview today in London. “It’s definitely achievable in 2015, and there’s a chance we can bring it forward.”
Randgold’s sales rose 9.5 percent to $348.7 million. Total cash costs fell to $662 an ounce from $717 an ounce a year earlier.