RANDGOLD RESOURCES LIMITED Incorporated in Jersey, Channel Islands Reg. No. 62686 LSE Trading Symbol: RRS Nasdaq Trading Symbol: GOLD HALF-YEAR PROFIT DOUBLES DESPITE INCREASED London, 31 July 2008 - Randgold Resources (LSE :RRS )(NASDAQ :GOLD ) boosted its net profit for the six months to June to USD38.4 million (2007: USD19.6 million) in spite of the negative impact of a weakening dollar and rising input costs, the company reported today. Net profit of USD20.2 million for the second quarter was up 11% on the previous quarter and up 196% on the corresponding quarter in 2007. The profit increase is attributable to higher production at the Loulo gold mine in Mali and at the Morila joint venture, also in Mali, where Randgold Resources took over management control earlier this year, as well as to a higher received gold price. Production at Loulo increased by 11% quarter on quarter and at Morila by 13%. While total cash costs at both operations rose, unit costs were reasonably well contained through increased production and an intensified focus on unit consumption measurements. Loulo produced 70 100 ounces at a total cash cost of USD496/oz during the quarter (Q1: 63 249 oz @ USD470) despite some operational challenges caused by the delay in ore production from the Yalea underground development. Yalea produced its first ore from development and silling operations in late June with ore production from mining stopes having started in July. Morila produced 113 746 ounces at a total cash cost of USD398/oz (Q1: 101 000 oz @ USD393), with remedial actions instituted by Randgold Resources resulting in improved throughput and recoveries. In another major development, the company said the latest drilling results from its recently announced Massawa project in Senegal, had confirmed that this was a major discovery. Continued diamond drilling had so far revealed significant grades and widths within two zones, totalling 3.1 kilometres out of the 6.5 kilometres of strike tested to date. "Results also confirmed good continuity in geology and gold mineralisation which supports our view that Massawa is potentially a multi million ounce project and validates our commitment to creating value through exploration and development," Bristow said. At the Tongon project in Cote d'Ivoire, currently in the early stages of development as the company's third mine, continuing infill drilling and follow-up optimisation studies completed during the quarter had resulted in a further increase of 26% in the reserve, which now stands at more than 3 million ounces. Most elements of the new mine's infrastructure have been settled and tenders from mining contractors are currently being considered. Chief executive Mark Bristow said the fact that the company had increased its profits - at a time when cost pressures on the mining industry were intensifying - demonstrated its commitment to protecting and improving its margins. "We aim to achieve this by growing our production and by focusing on cost control and efficiency improvement in every aspect of our operations," he said. Bristow noted that the company's strong organic growth prospects continued to be enhanced by the success of its exploration programmes, currently operating in six African countries. In addition to Massawa, its portfolio included a number of other advanced targets, notably Kiaka in Burkina Faso, Tiasso in the Cote d'Ivoire and Faraba near Loulo. These also provided it with an accurate benchmark against which to measure the new business opportunities it continues to evaluate at corporate, project and joint venture levels, he said. RANDGOLD RESOURCES ENQUIRIES: Chief Executive Financial Director Investor & Media Relations Dr Mark Bristow Graham Shuttleworth Kathy du Plessis +44 788 071 1386 +44 779 614 4438 +44 20 7557 7738 +44 779 775 2288 +44 1534 735 333 Email: randgoldresources@dpapr.com Website: www.randgoldresources.com Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/2783A_1-2008-7-31.pdf This information is provided by RNS The company news service from the London Stock Exchange END
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