30th Mar 2015 07:01
LONDON (Alliance News) - Randgold Resources Ltd Monday said its ore reserves increased in 2014 while its mineral resources fell, and it has ensured all of its operations are profitable at a gold price of USD1,000 an ounce.
Ore reserves were up 0.8% in 2014 to 15.2 million ounces while total mineral resources fell by 3% to 27.8 million ounces. The changes came due to the FTSE-100 miner continuing exploration and through resource conversion, it said in a statement.
"We are committed to replacing the ounces we mine through our ongoing brownfields exploration and drilling programmes," said Rod Quick, Randgold reserve and resource management executive.
The company also said it has not needed to write-down its reserves and resources as the gold price dropped in 2014 because it has calculated its reserves at a gold price of USD1,000 per ounce and its resources at USD1,500 per ounce.
Gold is currently trading around the USD1,140 per ounce mark.
"We have looked closely at all our mines to ensure that they will still be profitable at USD1,000 per ounce and we'll continue to review our operations against a range of gold price scenarios," said Chief Executive Mark Bristow.
By Joshua Warner; [email protected]; @JoshAlliance
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