Randgold shares soar on huge profits

Randgold Resources, the Africa focused gold mining company, has led the FTSE-100 risers today after announcing a surge in third quarter profits from $28m in 2010 to $123m in 2011.

Total sales for Q3 rose from $116m a year ago to $310m this year. On the back of these numbers Randgold's share price has climbed 6.31%.

The firm says it expects to beat production figures for 2010 by over 50%, with the current target between 740,000 and 760,000 ounces. In the third quarter Randgold achieved 184,711 ounces giving a year to date figure of 506,476 oz with three more months to go.

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The impressive results have been achieved despite what the company calls a "once in a hundred years" downpour a its Loulo/Gounkoto complex in Mali which flooded the pits and made the haulage road between Gounkoto and the Loulo plant impassable.

Gold has climbed over 20% this year as investors have sought a safe haven amidst the European debt firestorm. They obviously think they've found it in Randgold.

BS