31st Mar 2016 08:12
LONDON (Alliance News) - Randgold Resources Ltd Chief Executive Mark Bristow on Thursday said the company is well placed to continue generating robust cash flows even at a lower gold price.
Writing in the miner's annual report, Bristow said the mining industry needs to make new discoveries. A significant rise in the gold price and an injection of new capital into the industry would allow debt to be cleared, but will not provide much scope to add any value or reverse production declines.
"Our mines have been modelled to generate cash flows at gold prices well below the USD1,000 per ounce level. Our positive production and cost profiles extend to a 10-year horizon, we have had no impairments or write-downs, and have substantial cash resources," Bristow said.
Spot gold was quoted at USD1,230 an ounce early Thursday.
"Our exploration teams are not only replacing the ounces we deplete but are making significant progress in the hunt for our next big discovery. In fact, we are in a unique position to continue delivering value to all our stakeholders," he added.
Randgold shares were up 0.1% to 6,285.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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