Jersey, Channel Islands -- (MARKET WIRE) -- May 8, 2007 --
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
LOULO DRIVES PROFIT INCREASE AS GARA AND TONGON DRILLING RETURNS PROMISING
RESULTS
London, 8 May 2007 - Another good production performance from its Loulo
operation in Mali boosted London and Nasdaq listed gold miner Randgold
Resources' quarter-on-quarter net profit for the three months to March by 18% to
US$12.7 million.
Loulo sustained the momentum generated in the previous quarter, with higher
plant throughput and a steady feed grade delivering 67 908 ounces at a total
cash cost of US$320/oz. The company's overall attributable production of 109
198 ounces was down from the previous quarter's 118 821 ounces, mainly because
of lower output at its Morila joint venture in line with the 2007 mine plan.
Both Loulo and Morila turned in satisfactory unit cost performances.
Meanwhile work on the Loulo underground development has continued to advance
steadily. At Yalea, the first of the two underground mines to be developed, the
boxcut construction and excavation work has been completed and the twin declines
leading from the boxcut were well established by the end of the quarter. The
design of Gara, the second of the mines, has been updated, resulting in the
doubling of its underground reserve to 1.65 million ounces.
Chief executive Mark Bristow said the potential for the further expansion of
reserves at Gara continued to grow with the identification of new high grade
zones at Gara South.
"Drilling during the past quarter has confirmed the geological model of a blind
high grade target at Gara South and all intersections indicate that the
mineralised QT unit - which forms the main Gara orebody - is open both along
strike to the south and down dip. A number of drill holes have returned
intersections with an average grade of over 10g/t and work is continuing to
infill between these encouraging results, further defining high grade pods. The
extension of the QT target at Gara South has been tested up to 400 metres south
of the existing wireframe and holds significant potential for the addition of
high grade ounces to the Gara operation," he said.
Also on the Loulo permit, further drilling at the Faraba target where a resource
of 567 000 ounces has been inferred, has so far not extended mineralisation
beyond the currently defined 360 metres. However, with every hole intersecting
sulphide mineralisation and strong alteration with anomalous gold values,
Faraba's footprint has been extended and further drilling is planned. At
Baboto, diamond drilling is testing the continuity of the mineralised structures
identified within the five kilometre target area.
At the company's Tongon project in the Cote d'Ivoire, considerable progress is
being made on a 30 000 metre drilling programme which will form the basis for a
final feasibility study. Infill drilling along a 1.5 kilometre long structure
in the northern zone during the past quarter, has confirmed continuity of the
geology and mineralisation. Bristow noted that the first set of results
covering some 600 metres of the strike had shown continuity and good grades over
widths of between 20 and 30 metres, underlining the exciting potential of the
northern zone. He also said the improving political situation in Cote d'Ivoire
augured well for the future of Tongon and paved the way for the development of
other opportunities in the region.
Elsewhere in Africa, additional drilling continued to define a broad zone of low
grade mineralisation at the Kiaka target in Burkina Faso, while in Senegal the
RAB drilling programme has also returned positive results. Diamond drilling is
planned for the new target Massawa, where over three kilometres of bedrock
mineralisation has been identified, as well as for Delya, Sofia, Bambaraya and
other targets which may be identified by RAB drilling. In Tanzania, a new joint
venture agreement has been concluded with African Eagle on the Miyabi gold
project located in the south western part of the Lake Victoria Gold Belt.
Randgold Resources also announced that Kankou Moussa, its Malian gold bank
initiative, had been officially launched. The bank - a partnership between
Randgold Resources, the Malian government and the Malian gold companies, notably
Loulo - has been designed to provide local jewellers with easy access to refined
gold.
RANDGOLD RESOURCES ENQUIRIES:
Chief Executive - Dr Mark Bristow, +44 779 775 2288, +44 788 071 1386
Investor & Media Relations - Kathy du Plessis, +27 11 728 4701, Cell: +27 83 266
5847, Email:
randgoldresources@dpapr.com
Website:
www.randgoldresources.com
-------------------------------------------------------
REPORT FOR THE QUARTER ENDED 31 MARCH 2007
* Higher throughput and improved costs at Loulo lead to an 18% increase in
group profits quarter on quarter
* Attributable reserves increase by 16% year on year
* Strong cash balance after dividend payout
* High grades intercepted in Gara extension drilling
* Good progress made with feasibility at Tongon - significant results returned
from northern zone
* Drilling in Burkina Faso confirms bulk low grade mineralisation and new
diamond drill targets defined in Senegal
* Randgold Resources invests in a partnership with Malian gold jewellery
industry
SUMMARISED FINANCIAL INFORMATION
US$000 Quarter Quarter Quarter 12 months
ended ended ended ended
31 Mar 31 Dec 31 Mar 31 Dec
2007 2006 2006 2006
Gold sales# 63 065 68 857 67 241 262 717
Total cash costs* 35 007 38 125 33 463 132 540
Profit from mining 28 058 30 732 33 778 130 177
activity*
Profit before 16 225 15 763 18 422 73 973
income tax
Net profit 12 748 10 790 12 767 50 876
Net profit 11 418 9 980 11 545 47 564
attributable to
equity shareholders
Net cash generated 13 567 8 645 22 529 70 410
from operations
Cash and cash 139 407 143 356 158 139 143 356
equivalents
Attributable 109 198 116 821 118 989 448 242
production(S)
Group total cash 321 326 281 296
costs per ounce*(S)
(US$)
Group cash 284 288 245 258
operating costs per
ounce*(S) (US$)
# Gold sales does not include the non-cash profit/(loss) on the roll forward of
hedges.
* Refer to explanation of non-GAAP measures provided.
(S) Randgold Resources consolidates 100% of Loulo and 40% of Morila.
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