19th Apr 2016 15:48
LONDON (Alliance News) - Randgold Resources PLC Tuesday said although its Kibali mine was the "star performer" within its asset portfolio in 2015, the next two years will be "particularly tough" as the mine expands and ramps up production.
"Kibali is going to make a major impact on the Congolese economy - it has already spent more than USD1.00 billion with local service and goods providers - and I believe it will also be the flagship for the development of a major gold mining industry in this country," said Chief Executive Mark Bristow on Tuesday.
"The next two years will be particularly tough, as Kibali continues to ramp up its underground production within the constraints of a lower grade and the consequent need for a higher throughput," he added.
The Kibali mine produced 642,720 ounces of gold to Randgold's overall production of 1.2 million ounces in 2015, and on Tuesday the miner said Kibali is expected to produce around 610,000 to 620,000 ounces of gold in 2017.
Back in February, Randgold said the Kibali mine would produce around 600,000 ounces of gold in 2016, suggesting a small rise in production is expected between this year and next.
Randgold did not provide production guidance for 2017 covering all of its operations on Tuesday, but is aiming to produce around 1.25 and 1.3 million ounces of gold overall this year.
Randgold said it remains committed to the Democratic Republic of Congo despite "the stressed gold market, the operational challenges at Kibali and socio-political issues in the DRC."
"Our commitment to expanding our presence and stepping up our greenfields exploration here demonstrates our long term intent of finding world-class gold deposits and developing them into profitable mines, thus contributing to the DRC's continuing evolution as a democratic society with a robust economy," Bristow said.
Randgold shares closed up 2.4% to 6,715.0 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Randgold Resources