December 15th, 2015

Randgold Resources Ld - 3rd Quarter Results

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


London, 1 November 2007 (LSE:RRS)(Nasdaq: GOLD) - Randgold Resources increased production and contained group costs in the quarter to September despite some operational and weather-related challenges at its Loulo mine in Mali. At the same time, a rescoped study of its Tongon project in Cote d'Ivoire has substantially increased its potential size.

Gold sales rose to US$70.7 million from the previous quarter's US$66.2 million on the back of a 5% increase in attributable production to 110 247 ounces and higher gold prices. Attributable net profit of US$11.5 million was 69% up on the previous quarter. Total cash costs were US$38.2 million against the previous quarter's US$38 million and group total cash costs per ounce were down US$15 to US$346 compared to US$361. Cash operating costs were also down US$16 from US$321 to US$305 per ounce.

Chief executive Mark Bristow noted that production and costs for the nine months to September were in line with the market guidance Randgold Resources had given at the beginning of 2007 and said the company was on track to meet its forecast for the year despite the significant cost pressure driven by the higher fuel costs, stronger euro and higher royalties.

The company's Morila joint venture substantially improved its performance, producing 130 568 ounces at a total cash cost of US$289 per ounce (cash operating cost of US$241 per ounce) against the previous quarter's 86 832 ounces at US$403 per ounce (cash operating cost of US$355 per ounce). The increase resulted from a better mining rate which provided access to higher-grade faces. Morila's production for the final quarter of the year is anticipated to approach the level required to achieve the revised annual forecast of 475 000 ounces.

The Loulo mine achieved planned gold production, despite an exceptionally wet season and equipment availability constraints on the part of the mining contractor. These factors had a negative impact on the mix of hard and soft ore fed to the mill, resulting in a higher percentage of harder Gara ore in the mix. Gara ore is very abrasive when fed on its own which impacted on crusher liner and grinding media consumption, and consequently on unit costs.

"Given the odds stacked against them, Loulo's management team did very well to achieve the planned gold production of 58 020 ounces at total cash costs of US$398 per ounce (cash operating cost of US$363 per ounce). The mine is still on track to achieve and perhaps better its forecast production of 250 000 ounces for the year."

Also at Loulo, progress on the twin declines for the Yalea underground development was slowed down by poor ground conditions. At the end of the quarter, the declines had been developed to some 460 metres and were at a vertical depth of 86 metres.

"Once we're through the unstable weathered zone, the pace will pick up again and it should then take us about 10 weeks to intersect the orebody. That is now more likely to be early in 2008 than towards the end of this year, as we originally expected, but the integrity of the declines and the safety of the workers are more important than the rate of advance. This slight delay should not affect Loulo's projected overall production profile but may result in the deferring of some costs to next year," Bristow said. He noted the declaration of an additional 386 000 ounces at Yalea resulting from the completion of a new design and mining plan for the Yalea South extension.

Meanwhile, the rescoping exercise designed to update the prefeasibility study on the Tongon project has shown a 41% increase to 4.39 million ounces in the total resource, with 37% converted to reserves. The expanded total mineable resource of 2.79 million ounces will support a larger operation than originally envisaged and the plant's design throughput is being increased from 200 000 tonnes per month to 300 000 tonnes, with a life of mine exceeding 10 years. The emphasis at Tongon is now on continuing with the next phase of infill and definition drilling and completing the bankable feasibility study. This drilling is designed to convert the remaining mineable resource to reserve and could also lead to an increase in the average grade of the mineable material due to improved drillhole density and a commensurate improvement in orebody definition, particularly in the southern zone and the shallower regions of the northern zone orebodies.

On the exploration front, Bristow said the company had added significant brownfields elements, notably around Loulo and Tongon, to the portfolio of greenfields prospects which had traditionally driven its organic growth.

With its West African exploration teams now back in the field after the annual wet season break, there was a strong focus on the Faraba, Loulo 3 and Baboto prospects around Loulo as well as the adjacent Bambadji joint venture. In Cote d'Ivoire, a number of promising targets would be evaluated on the Nielle permit, which hosts Tongon, as well as on the company's other permits in that highly prospective region. These include the Tiasso walk-up drill target on the Boundiali permit.

Bristow said there were a number of significant greenfields exploration plays located in the six countries across West and East Africa where Randgold Resources has a presence. He added that the company would pursue corporate and acquisition opportunities provided they outranked its own organic growth prospects.


Chief Executive   Financial Director   Investor & Media Relations
Dr Mark Bristow   Graham Shuttleworth  Kathy du Plessis
+44 788 071 1386  +44 20 7557 7730     +44 20 7557 7738
+44 779 775 2288  +44 779 614 4438
+223 675 0122



*  Solid operating performance
*  Gold production up 5%
*  Costs in line
*  Net profit up 69%
*  Tongon resources up 41% to a total of 4.39Moz; 37% converted to
*  Rescoping of prefeasibility study at Tongon supports a larger project
*  Significant brownfield exploration potential highlighted at Loulo and

Randgold Resources Limited had 69.3 million shares in issue as at 30 September 2007


US$000              Quarter   Quarter   Quarter    9 months    9 months
                      ended     ended     ended       ended       ended
                     30 Sep    30 Jun    30 Sep      30 Sep      30 Sep
                       2007      2007      2006        2007        2006

Gold sales#          70 701    66 220    63 178     199 986     193 860
Total cash costs*    38 189    38 029    32 504     111 225      94 415
Profit from
mining activity*     32 512    28 191    30 674      88 761      99 445
Exploration and
expenditure           7 872     8 594     6 768      22 987      21 393
Profit before
income tax           18 319    10 034    18 302      44 578      58 210
Net profit           11 540     6 848    12 746      31 136      40 086
Net profit
attributable to
equity shareholders  11 474     5 764    12 285      28 656      37 584
Net cash generated
from operations       2 262    14 663    17 818      30 492      61 765
Cash and cash
equivalents         131 086   137 313   155 320     131 086     155 320
(ounces)            110 247   105 393   107 002     324 838     331 379
Group total
cash costs per
ounce*+ (US$)           346       361       304         342         285
Group cash operating
per ounce*+ (US$)       305       321       265         303         247

#  Gold sales does not include the non-cash profit/(loss) on the roll
   forward of hedges.

*  Refer to explanation of non-GAAP measures provided.

+  Randgold Resources consolidates 100% of Loulo and 40% of Morila.

To view the full text of this press release, paste the following link into your web browser:

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

Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.