6th Nov 2014 07:57
LONDON (Alliance News) - Randgold Resources Ltd Thursday said earnings rose in the third quarter as a production increase driven by the ramp-up of the Kibali mine more than offset a currency hit, and it said it was on track to produce more than a million ounces of gold in 2014.
In a statement, the gold producer said third quarter earnings per share rose 11% compared with the second quarter, to USD0.63, while its profit from mining rose 6% on the quarter to USD172.6 million.
Production in the three months to end-September rose 8% on the quarter to 299,320 ounces, reflecting its ongoing ramp-up of the Kibali mine and a strong performance in its other operations. Its total cash costs fell 1% from the second quarter to USD692 an ounce.
"Kibali is nearing operational stability as it continues to ramp up mining and production, and the operation is well on its way to achieving its goal of delivering an average of 650,000 ounces per year over the next 10 years," Chief Executive Mark Bristow said.
The Kibali mine produced 145,152 ounces in the third quarter, up from 91,137 ounces in the second quarter. Production at the group's flagship Loulo-Gounkoto complex was 8% down at 160,286 ounces but Bristow said it was still on track to exceed its 2014 guidance of 640,000 ounces.
"With production standing at 860 366 ounces at the end of September, we're well on our way to passing the million-ounce landmark before the end of this year. It's been another challenging quarter but our operations have done well and it's particularly gratifying to note that despite the growth of the scale and complexity of our operations, our safety record continues to improve," Bristow said.
Production at Tongon increased 22% on the quarter to 63,832 ounces on the back of improved mill feed grade, gold recovery and mill tonnage throughput, and total cash cost per ounce was reduced by 15% to $799, Randgold said. Preliminary drilling has identified an additional 450,000 ounces of resources at the mine, it added.
By Steve McGrath; [email protected]; @stevemcgrath1
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