Despite the recent geo-political challenges that have dogged Randgold Resources as of late, the gold miner has assured that it still expects to hit its medium-term production target.
Along with the publication of Randgold's annual report for 2011, Chief Executive Officer Mark Bristow said: "This year has also started with some real challenges around the Mali political situation and the company still has some way to go to start benefiting from the expansions at Loulo."
He also said that the company still has to "settle" operations at its Tongon mine in Cte d'Ivoire by increasing production and stabilising industrial relations.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Randgold's shares fell by as much as 15% on Thursday after it was reported that rebel troops had taken over Malian state radio and TV and announced that they have seized control of the country. The company has since said that operations at its mines in the region are still operating.
"Just as Randgold gained in 2011 from the investments made and the work done in previous years, so it should reap the benefits of 2011's achievements in years to come. The underlying challenge, as ever, is to build on past successes so that the company can continue delivering value to shareholders," Bristow said.
"There is also an intensified focus on our financial systems and cost control, along with the management of our cash, given the additional risk that comes with the large capital expenditure schedules we have planned for the next two years and our intention to fund these internally. Our medium term aim is still to reach a production level of 1.2 million ounces by 2015," he said.
Despite this confident outlook, shares fell 0.64% to 5,435p before the close on Friday, underperforming the wider mining sector that was up 1.36%.
BC
