London, 6 November 2018 - Increased output at Randgold Resources’ other operations offset the impact of the strike at Tongon and kept the group’s gold production of 308 628 ounces in line with that of the previous quarter.
Q3 results published today also show a 16% improvement in group total cash cost per ounce at $586, a 25% increase in profit of $73.2 million and cash on hand rising by 8% to $654 million.
Chief executive Mark Bristow said considering that Tongon only returned to normal in the last month of the quarter, this was an exceptional performance, highlighted by Kibali posting another set of record results, and moving further ahead of plan, while Loulo-Gounkoto also delivered increases across the board.
“With the pushback for the new Gounkoto super pit now well underway, this quarter’s results set up well for a strong finish to the year,” Bristow said.
“Meanwhile we continue to invest in our future. The Massawa project in Senegal has started a public participation process as part of its feasibility study and we’re moving ahead with the feasibility studies for Loulo 3 and Kalimva-Ikama at Kibali. Brownfields exploration at Loulo-Gounkoto and Kibali is confirming that we should be able to sustain our 10-year business plan by replacing depleted reserves with ounces of the same quality. Underground extension drilling at Yalea and Kibali has returned strong results and ongoing work along the Badenou structure is showing opportunities for adding ounces at Tongon.”
During the quarter the Dow Jones Sustainability Index announced that Randgold had been included in its index of top sustainability performers. Randgold has been a constituent of the FTSE4Good Index for the past four years. Also in this period, Morila’s pioneering agribusiness project, designed to replace mining with a sustainable source of economic activity after the mine’s closure, received the Malian government’s official approval. Bristow said these developments demonstrated the company’s commitment to improving the welfare of its host country’s stakeholders.
Randgold’s shareholders will vote tomorrow on its all-share merger with Barrick Gold Corporation. Bristow, who will be the president and chief executive of the proposed new company, said it would be focused on leveraging the combined strengths of Barrick and Randgold to become the leading gold investment vehicle and deliver long term value to all stakeholders.