26th Oct 2015 07:15
LONDON (Alliance News) - Randgold Resources Ltd on Monday said it has repaid USD448.0 million in loans owed to its shareholders, moving the company into a "dividend-paying position".
Chief Executive Mark Bristow called the repayment a "significant achievement, particularly in the context of a global gold-mining industry currently characterised by capital write-downs and impairments."
The shareholder loans funded the majority of Randgold's USD580.0 million capital investment in its Tongon project in the Ivory Coast.
"Tongon has already paid close to USD90.0 million to the Ivorian state in the form of royalties and taxes, and the country will now benefit even more from the dividends the government will receive through its 10% carried interest in the mine, as well as the increased revenue when Tongon starts paying full corporate tax at the end of this year," Bristow said.
Moving forward, the company aims to find more resources at Tongon via exploration to extend the project's mine life whilst also looking for "multi-million ounce" deposits elsewhere within the Ivory Coast.
Randgold said it is about to launch its "biggest-ever exploration drive" in the West African country, which will include a fresh look at the Nielle permit, which hosts Tongon, and a geophysical survey, followed by a diamond drilling programme, across all of its holdings in the northern part of the Ivory Coast.
The gold miner did not release any plans or guidance concerning a possible dividend payment.
By Joshua Warner; [email protected]; @JoshAlliance
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