10th May 2018 09:07
LONDON (Alliance News) - Randgold Resources Ltd said on Thursday its annual production guidance remains intact despite a soft first quarter, in which the gold miner encountered "multiple challenges".
Shares in Randgold were down 7.1% early Thursday at 5,662.00 pence, making it the worst performer in the FTSE 100.
Group production was lower in the first quarter of the year at 286,890 ounces, which was below the 340,958 ounces recorded in the fourth quarter of 2017 and 322,470 ounces in the first quarter of 2017.
The average gold price received in the period was USD1,331 per ounce, up from USD1,220 a year before.
Gold sales totalled USD391.8 million in the three months to March 31, down from USD409.6 million a year before. Profit attributable to equity shareholders came in at USD57.5 million, down from USD69.8 million last year.
Profit from mining dropped by 19% to USD179.9 million from the previous quarter, and by 11% on the corresponding quarter of 2017.
Total cash costs were USD211.9 million for the period, up from USD207.7 million last year.
Following the full commissioning of its underground mine, Kibali - located in the Democratic Republic of the Congo - Randgold increased first-quarter production by 22% year-on-year and is on track to achieve its 2018 target of 730,000 ounces, it said.
In Cote d'Ivoire, Tongon's production was hurt by a series of work stoppages.
"With operations now back at full capacity, the mine is committed to clawing back most of the lost production," Randgold added.
Randgold's flagship operation, the Loulo-Gounkoto complex, made a strong start to the year although changes in the mining schedule affected the underground grade, which knocked production.
"Coming off a strong prior quarter and record performance in 2017 the company had anticipated a slower start to this year," Chief Executive Mark Bristow said, "with a gradual build-up throughout the year".
"It was a very active quarter, in which we ramped up the underground production at Kibali, advanced the Gounkoto super pit project and the development of the Baboto satellite pit at Loulo, and prepared the Ntiola satellite deposit at Morila for mining," Bristow said.
"At the same time we also successfully handled the difficult labour situation at Tongon, sorted out the sequencing at Loulo and continued negotiations relating to the new mining code with the DRC government," Bristow added.
The company remains confident in meeting its annual production guidance of 1.30 million to 1.35 million ounces.
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