27th Jan 2014 08:44
LONDON (Alliance News) - Randgold Resources Ltd Monday said efficiency projects at its Tongon Gold Mine in the Ivory Coast have boosted its performance significantly but the recovery rate is still struggling, and it will miss management expectations for 2014.
The planned expansion of the flotation process should lift the site recovery rate to its feasibility study level, the FTSE 100 mining company's chief executive, Mark Bristow, said during a quarterly media briefing Monday.
Bristow said that while Tongon had increased production, its recovery rate was still struggling to break 80% for the year and raising the recovery rate to the targeted upper 80s will require the expansion to capture most of the sulphide in the ore.
For now, the Tongon site is forecasting production of 260,000 ounces for 2014, which the company said is an increase on its 2013 gold output but slightly behind its internal target.
The flotation process is a separation process which consists of several steps and is used to produce gold concentrate.
The company said the initial estimates for the cost of expansion are roughly USD12 million, and it is targeted for completion by the end of 2014 with a forecast payback period of eight to ten months.
Randgold Resources shares were down 0.3% to 4,221.75 pence in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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