Operational and Political Issues Impact Randgold Resources Q4 Production
LONDON -- (Marketwire) -- 12/23/10 -- Randgold Resources Limited (LSE: RRS) (NASDAQ: GOLD)
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
Randgold Resources said today the effect of the continuing political impasse in Côte d'Ivoire on its Tongon mine and a below-target contribution from its Loulo complex would have a negative impact on its fourth quarter performance and its year end results.
Chief executive Mark Bristow said Tongon was continuing to operate, albeit on a curtailed basis, and under the circumstances the team was doing a great job. Following the commissioning of the first stream in October, the second mill was commissioned on time at the end of November. However, the completion of the second stream has been delayed by the non delivery of a number of key components which have been held up in the Abidjan port and by the shipping delays caused by the political crisis in the south of the country. While security at and around the mine has not been affected by post-election developments, Tongon's main supply route from Abidjan has been impeded and although there are alternate routes, they are more complex and not without challenges.
Given the ongoing political situation in the country and the possible further deterioration of the supply chains in the short term, the mine will continue to operate on one stream. Although the capital programme is now behind schedule, construction of the final phases and commissioning will continue, albeit with a smaller team. On this basis, the company has revised its production guidance for Tongon and stated that assuming the supply chains could be managed and the situation on site remained as it is today, the mine was planning to process approximately 350 000 tonnes of oxide ore at a grade of 3.4g/t to produce approximately 35 000 ounces for the year. Bristow added that given the current situation and the resultant delays, gold sales were expected to differ to production.
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RANDGOLD RESOURCES ENQUIRIES:
Chief Executive
Mark Bristow
+44 788 071 1386
+44 779 775 2288
Financial Director
Graham Shuttleworth
+44 1534 735 333
+44 779 771 1338
Investor & Media Relations
Kathy du Plessis
+44 20 7557 7738
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