6th Aug 2015 07:00
LONDON (Alliance News) - Randgold Resources Ltd Thursday said its pretax profit fell in the first half of 2015 due to lower gold prices and higher costs.
The FTSE 100-listed gold miner reported a pretax profit of USD72.0 million in the second quarter of 2015, falling from a USD92.1 million profit a year earlier, as revenue dropped to USD285.0 million from USD294.9 million.
Alongside the fall in revenue, the miner reported higher depreciation and amortisation costs of USD43.0 million in the quarter from USD31.7 million a year earlier, with mine production costs also increasing to USD127.3 million from USD131.1 million. Exploration and corporate costs also experienced a small rise.
That brought pretax profit for the first half to USD132.9 million, a dramatic fall from USD200.1 million a year earlier, as revenue for the half came in at USD546.4 million compared to USD609.8 million.
Revenue fell due to a combination of rising cash costs and falling gold prices even though gold production rose in the first half to 579,570 ounces from 561,046 ounces and sales increased to 582,045 ounces from 555,393 ounces.
The average gold price achieved in the first half of 2015 was USD1,202 per ounce, compared to USD1,293 per ounce a year earlier, whilst cash costs rose to total USD404.8 million from USD384.8 million.
By Joshua Warner; [email protected]; @JoshAlliance
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