4th May 2016 06:45
LONDON (Alliance News) - Randgold Resources Ltd Wednesday said its profit increased during the first three months of the year after its flagship operation put in a good performance to cushion the negative impact of technical issues at some of its other gold mines.
The gold miner said its pretax profit in the first quarter of 2016 amounted to USD85.0 million in the first quarter of 2016, which was up from USD70.5 million in the previous quarter and a lift from the USD61.0 million reported a year earlier.
Revenue in the first quarter totalled USD267.6 million, compared to USD272.1 million in the last quarter of 2015 and USD231.3 million in the same period a year earlier.
Although revenue fell quarter-on-quarter, total costs were considerably lower, at USD192.5 million from USD205.0 million, helping Randgold improve its margins. Compared to a year earlier, total costs dropped from USD199.5 million.
Cash costs per ounce of gold were higher on a quarter-on-quarter basis but lower than year ago, but other costs including mine production, mining and processing costs and exploration expenditure all fell to make savings elsewhere in the first quarter.
The gold miner said its first quarter performance was down to its flagship Loulo-Gounkoto complex in Mali, which delivered a "robust performance" during a period whilst its other Kibali and Tongon mines were negatively impacted by commissioning and "other technical issues," it said.
Overall production in the quarter was down 11% from the previous "record" quarter at 291,912 ounces, but that was up 25% when compared to the first three months of 2015.
The flagship operation produced 6% less gold on a quarter-on-quarter basis, but was up 34% from a year earlier. The Tongon mine saw production fall 6.0% quarter-on-quarter whilst Kibali saw production fall by 15%.
"With our strategy, plans and projections intact, we are able to continue delivering value at current and even lower gold price levels. We're quite bullish about gold's medium to long term prospects, and when the cycle turns, the work we do now will have equipped us to capitalise fully on the upside," said Chief Executive Mark Bristow.
By Joshua Warner; [email protected]; @JoshAlliance
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