Randgold Resources announces 3rd Quarter Results
07.11.2012 | Marketwire
ERSEY, CHANNEL ISLANDS -- (Marketwire) -- 11/07/12 --RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
NASDAQ Trading Symbol: GOLD
RANDGOLD HOLDS COURSE IN CHALLENGING QUARTER
Substantial progress at the Kibali gold mine development project and Randgold's flagship Loulo complex was offset by grid power supply problems at the Tongon mine and lower grades processed at Gounkoto, as Randgold Resources' third quarter results held steady but did not match its record second quarter performance.
Q3 profit of US$121.3 million was down 15% on the prior quarter, primarily on the back of lower sales, but in line with the corresponding quarter in 2011. Production was 204475ounces of gold against Q2's 210534ounces and 182362ounces in Q3 of 2011, while the total cash cost per ounce was US$737 (Q2: US$703/Q3 2011: US$747). Ounces sold dropped by 10% quarter on quarter, affected by the timing of gold shipments at quarter end being disrupted by the annual stock take at the refinery.
Highlight of the quarter was the strong improvement at Loulo, which increased production by 78% and reduced total cash cost per ounce by 8%. Tonnes mined and processed were mostly from Loulo's two underground mines, Yalea and Gara, which are now beginning to deliver their full potential. Both mines also achieved a steady rise in stoping and development rates.
Relative to Loulo's improved delivery, Gounkoto's contribution to the complex's results was down as forecast, however grades processed were lower than planned due to less ore being mined and more medium grade stockpiled material being fed to make up for increased plant throughput. Meanwhile, a geotechnical review has confirmed the potential for an underground mine at Gounkoto, where an underground resource of more than 1millionounces at a grade in excess of 5g/t has been identified. Infill drilling for a prefeasibility study, due for completion early in 2013, is underway.
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