30th Oct 2018 17:27
LONDON (Alliance News) - Randgold Resources Ltd said Tuesday that its flagship Loulo-Gounkoto gold mining complex in Mali is stepping up production.
The FTSE 100-listed miner said after the step up it expects increased grades in the third and fourth quarter of the year.
In a briefing with the local media, Chief Executive Officer Mark Bristow said that the complex's production was weighted towards the second half of the year due to the "big pushback's impact in the first two quarters".
The complex's production is now "getting back to its normal run rate" with an increase in production during the the third quarter.
At the briefing, Chiaka Berthe, general manager operations for West Africa, said that brownfields exploration on the orebody extensions confirmed the potential for the complex to keep replacing depleted reserves with ounces of the same quality.
"Loulo-Gounkoto is one of the largest operations of its kind in the world and has been a pillar of the Malian economy since Loulo went into production in 2005. The latest exploration results show that its life is likely to extend beyond the current 10-year horizon," he said.
Elsewhere in Mali, Randgold said it entered into discussions on a potential joint venture with the government to explore a regional area and develop a geological dataset.
The joint venture process will offer some private holders of rights in the area the opportunity to become potential equity partners in new ventures.
Meanhwile, in relation to the settlement of the Randgold group companies' tax and TVA issues with the government, Randgold said a mediation process was underway through a jointly appointed facilitator and third-party experts.
Bristow added: "This again demonstrates that our constructive partnership approach is the best way to resolve occasional disagreements with our host governments."
Randgold shares closed down 2.5% at 6,144.0 pence each.
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