7th Aug 2014 07:58
LONDON (Alliance News) - Randgold Resources PLC Thursday said its pretax profit jumped in its second quarter as higher gold production and lower cost of sales offset a fall in the price of gold.
The FTSE 100-listed mining company said its pretax profit increased 52% to USD92.1 million for the three months ended June 30 from USD60.7 million in the previous year, as revenue rose 28% to USD292.8 million.
The company said revenue increased as its gold production rose 41% to 277,283 ounces in the second quarter from the same period a year earlier, while its costs per ounce of gold fell 12% to USD701. That offset a fall in the average realised gold price to USD1,290 per ounce from USD1,363 per ounce.
In its first half as a whole, the company's revenue rose 12% to USD577.2 million and pretax profit increased 37% to USD200.1 million.
Randgold noted that when compared to the first quarter, second-quarter production fell 2% and cash costs rose by 2%, with profit from mining falling 5%.
The company said its quarterly gold production for its flagship Loulo-Gounkoto complex in Mali was 174,052 ounces, almost double the previous year and 3% up on the previous quarter
The company said in July that its planned ramp up of the Tongon gold mine in Ivory Coast was not achieved due to its need to expand the flotation circuit and a recent mechanical failure of crushers which were intended to improve the recovery and throughput rate on site.
Randgold said at the time that it was carrying out certain improvements at Tongon and so its production rate was likely to fall 10% short of its original guidance of 260,000 ounces for the full year.
On Thursday, Randgold said it is progressing well with the Tongon upgrades, reiterating that it expects to achieve its overall full-year production guidance.
On Wednesday, the company also had said it had tightened its health precautions in the wake of the Ebola virus outbreak in West Africa, even though its operations are some way away from the affected areas.
The number of Ebola deaths in West Africa has risen to 932, the World Health Organisation said Wednesday, as the disease continues to spread across the region.
Randgold Resources shares were down 1.0% to 5,105.20 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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