Jersey, Channel Islands--(Marketwire - February 4, 2008) -
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
("Randgold Resources" or the "Company")
STRONG FINISH TO '07 FOR RANDGOLD RESOURCES AS TONGON PROJECT GETS GO-AHEAD
London, 4 February 2008 (LSE:RRS)(Nasdaq:
GOLD) - Randgold Resources today
announced that its board had approved the development of a new gold mine at
Tongon in the Cote d'Ivoire, subject to the conclusion of a mining convention
with the Government.
Reporting its results for the fourth quarter of 2007 and the year to December,
the company also said a strong performance from its Loulo operations in Mali had
boosted Q4 net profit to US$14.5 million, up 26% on the previous quarter and 34%
up on the comparable quarter in 2006. A dividend of 12 US cents, up 20% on
2006, was declared for the year.
Attributable gold production for the year of 444 573 ounces was in line with
forecast, due in part to Loulo's increased contribution of 264 467 ounces at a
total cash cost of US$372/oz (2006: 241 575 ounces at US$328/oz). This
compensated for the shortfall in production at Morila, which delivered 449 815
ounces at a total cash cost of US$332/oz against a forecast of 475 000 ounces.
The company said the shortfall was attributable to operational problems related
to planning, grade control and plant lock-up.
Net profit for the year was down from US$50.9 million to US$45.6 million as a
result of a tax adjustment of US$3.2 million at the Morila joint venture; a rise
of US$7.1 million in exploration and corporate expenditure, mainly as a result
of increased spending on Tongon; and costs associated with a programme to
improve Loulo's operational flexibility. The company said its annual profit
would have exceeded the previous year's had it not been for these exceptional
items.
The company also announced today that Randgold Resources (Mali) was taking over
the operational responsibility for Morila from its joint venture partner
AngloGold Ashanti. AngloGold Ashanti has advised Randgold Resources that it is
considering the disposal of its 40% stake in Morila and the two companies have
agreed that in the circumstances it would be best for all stakeholders if
Randgold Resources assumed the operatorship as soon as possible, given its
continuing presence in and commitment to the region.
At Tongon, a Type 3 feasibility study was concluded and on the strength of this
the Randgold Resources board has given the green light for mine development to
proceed. An initial draft of a proposed mining convention has been submitted to
the Cote d'Ivoire's Ministry of Mines and Energy. Subject to agreement on this,
construction of the mine will start at the end of 2008 with first gold
production scheduled for the fourth quarter of 2010. Funding for Tongon has
already been secured through last year's successful US$240 million private
placement of shares.
Meanwhile the development of the Yalea underground mine at Loulo has continued
to make steady progress, with the shaft advancing by a record 260 metres in
January. Development ore should be accessed later this quarter with the first
mining faces established by mid-year. It has been decided to replace the
raiseboring shaft with an additional decline shaft to extend access to the
orebody.
On the exploration front, Massawa in Senegal has emerged as a significant new
drilling target. RAB drilling has returned high-grade results, confirming
continuous mineralisation over a 2.8 kilometre strike length. A 5 000 metre
diamond drilling programme is scheduled to start this quarter.
Chief executive Mark Bristow said at a time when the gold industry was faced
with declining output and a dearth of quality projects, Randgold Resources was
gearing up to grow production and profits. With Loulo targeting production of
400 000 ounces per year by 2010 and Tongon stepping in to replace the declining
Morila, group attributable production was set to increase by 50% to 600 000
ounces per year by 2011. In addition, a robust exploration project portfolio
led by Massawa offered additional organic growth potential.
"We're strong in equity and cash and so also well placed to make the most of any
corporate opportunities that meet our profit criteria and fit in with our pure
gold strategy," he said.
RANDGOLD RESOURCES ENQUIRIES:
Chief Executive Financial Director
Dr Mark Bristow Graham Shuttleworth
+44 788 071 1386 +44 779 614 4438
+44 779 775 2288 +44 20 7557 7730
+223 675 0122
Website: www.randgoldresources.com
Investor & Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: randgoldresources@dpapr.com
----------------------------------------------------
REPORT FOR THE QUARTER AND YEAR ENDED 31 DECEMBER 2007
* Net profit up 26% quarter on quarter
* Gold production, supported by increased ounces from Loulo, in line
with forecast
* Dividend increased by 20%
* US$240 million private placement secures financing for Tongon
* Board approves Tongon mine development
* Loulo underground redesign allows early access to ore
* Randgold Resources to assume operatorship at Morila
* Massawa in Senegal grows into significant drill target
Randgold Resources Limited had 76.1 million shares in issue as at
31 December 2007
SUMMARISED FINANCIAL INFORMATION
US$000 Unaudited Unaudited Unaudited
quarter quarter quarter
ended ended ended
31 Dec 30 Sep 31 Dec
2007 2007 2006
Gold sales# 89 855 70 701 68 857
Total cash costs* 47 093 38 189 38 125
Profit from mining 42 762 32 512 30 732
activity*
Exploration and 12 933 7 872 7 412
corporate expenditure
Profit before income 22 323 18 319 15 763
tax
Net profit 14 492 11 540 10 790
Net profit 13 385 11 474 9 980
attributable to
equity shareholders
Net cash generated 31 741 2 262 8 645
from operations
Cash and financial 343 133 131 086 143 356
assets
Attributable 119 736 110 247 116 821
production+ (ounces)
Group total cash 393 346 326
costs per ounce*+
(US$)
Group cash operating 347 305 288
costs per ounce*+
(US$)
US$000 Unaudited Unaudited
12 months 12 months
ended ended
31 Dec 31 Dec
2007 2006
Gold sales# 289 841 262 717
Total cash costs* 158 318 132 540
Profit from mining 131 523 130 177
activity*
Exploration and 35 920 28 805
corporate expenditure
Profit before income 66 901 73 973
tax
Net profit 45 628 50 876
Net profit 42 041 47 564
attributable to
equity shareholders
Net cash generated 62 233 70 410
from operations
Cash and financial 343 133 143 356
assets
Attributable 444 573 448 242
production+ (ounces)
Group total cash 356 296
costs per ounce*+
(US$)
Group cash operating 315 258
costs per ounce*+
(US$)
# Gold sales do not include the non-cash profit/(loss) on the roll
forward of hedges.
* Refer to explanation of non-GAAP measures provided.
+ Randgold Resources consolidates 100% of Loulo and 40% of Morila.
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