Randgold Resources on track to bring Kibali to production

Randgold Resources boss Mark Bristow said on Thursday the miner's first priority was to pour first gold at its Kibali project in the Democratic Republic of Congo before the end of 2013.

Randgold Resources boss Mark Bristow said on Thursday the miner's first priority was to pour first gold at its Kibali project in the Democratic Republic of Congo before the end of 2013.

He said the company was well placed to achieve its targets.

Cash and gold of $403m at the end of 2012 will help the company fund the project along with other developments, including the ramp-up of production at the flagship Loulo-Gounkoto complex in Mali.

"Our exploration teams are hunting for additional resources for our mines as well as fresh targets that will produce our next big discovery," Bristow said.

"Throughout the group, we will sustain a strong emphasis on growing production and containing costs, and our overall objective remains the creation and delivery of value to all our stakeholders."

At the same time, the company announced it increased its attributable reserves.

Randgold's 2012 mineral resource and reserve declaration showed total attributable mineral reserve ounces up by 803,000 to 16.36m.

The group reserve grade grew from 3.84 to 3.87 grams per tonne (g/t), while total attributable resources were down from 28.25m to 27.21m ounces.

"It's also worth noting that we haven't used the higher gold price to boost our ounces," said General Manager Rod Quick.

"For the second year running, we have calculated our reserves at a relatively conservative $1,000/oz of gold while our resources have been estimated at $1,500/oz."

At Kibali total reserves stand at 10.92m oz at 4.10g/t, up from 10.21m oz at 4.04g/t. Loulo underground reserves have increased by 90,000 oz despite mining depletion.

The news comes after the company last month reported its annual results which showed a 16% increase in profit and 14% rise in production.

Underpinning the results was production at Loulo, where the group reported that production had exceeded its yearly target, delivering 503,224 oz.

Shares rose 0.79% to 5,715p at 09:44 Thursday.

RD

Recommended

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this satellite broadband company
Trading

Why you should short this satellite broadband company

With an ill-considered business plan, satellite broadband company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Could gold be the basis for a new global currency?
Gold

Could gold be the basis for a new global currency?

Gold has always been the most reliable form of money. Now collaboration between China and Russia could lead to a new gold-backed means of exchange – g…
22 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Paypal, bitcoin, and the weaponisation of money
Bitcoin & crypto

Paypal, bitcoin, and the weaponisation of money

Recent events have shown how both business and governments can “weaponise” money and shut down dissent. What to do? Buy bitcoin, says Dominic Frisby.
22 Sep 2022