5th Nov 2015 07:50
LONDON (Alliance News) - Randgold Resources Ltd on Thursday said its revenue from gold sales dipped in the third quarter, leaving its profit for the period lower, as it continued to deal with the tough conditions in commodities markets.
The FTSE 100-listed gold miner, which operates mainly in central and west Africa, said its profit for the nine months to the end of September was USD159.2 million, down from USD216.8 million a year earlier, as profit for the third quarter fell to USD48.8 million from USD59.2 million.
Gold sales revenue for the nine months fell to USD1.04 billion from USD1.09 billion, as the average gold price received for the group fell to USD1,174 an ounce from USD1,288. The hit this delivered to its revenue was eased by the group selling more gold in the first nine months, up to 885,763 ounces from 850,410 ounces a year earlier.
Randgold said its gold production in the third quarter, which rose to 305,288 ounces from 300,039 ounces a year earlier, was a quarterly record for the group, but said profit fell due to lower average grades and the lower price received on its gold sales. Third-quarter gold sales revenue was GBP340.7 million, down from GBP354.8 million a year before.
"The gold mining industry is severely stressed and Randgold is certainly not immune to the pressure. Relative to our peers, however, we are still doing well. We have a proven strategy against which we constantly test our businesses, and we are relentless in our drive to deliver on our plans," said Chief Executive Mark Bristow.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Randgold Resources