1st Nov 2007 07:01
Randgold Resources Ld01 November 2007 RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNasdaq Trading Symbol: GOLD("Randgold Resources" or the "Company") SOLID Q3 OPERATIONAL PERFORMANCE WHILE PROSPECT OF NEW MINE GAINS MOMENTUM London, 1 November 2007 (LSE:RRS)(Nasdaq:GOLD) - Randgold Resources increasedproduction and contained group costs in the quarter to September despite someoperational and weather-related challenges at its Loulo mine in Mali. At thesame time, a rescoped study of its Tongon project in Cote d'Ivoire hassubstantially increased its potential size. Gold sales rose to US$70.7 million from the previous quarter's US$66.2 millionon the back of a 5% increase in attributable production to 110 247 ounces andhigher gold prices. Attributable net profit of US$11.5 million was 69% up onthe previous quarter. Total cash costs were US$38.2 million against theprevious quarter's US$38 million and group total cash costs per ounce were downUS$15 to US$346 compared to US$361. Cash operating costs were also down US$16from US$321 to US$305 per ounce. Chief executive Mark Bristow noted that production and costs for the nine monthsto September were in line with the market guidance Randgold Resources had givenat the beginning of 2007 and said the company was on track to meet its forecastfor the year despite the significant cost pressure driven by the higher fuelcosts, stronger euro and higher royalties. The company's Morila joint venture substantially improved its performance,producing 130 568 ounces at a total cash cost of US$289 per ounce (cashoperating cost of US$241 per ounce) against the previous quarter's 86 832 ouncesat US$403 per ounce (cash operating cost of US$355 per ounce). The increaseresulted from a better mining rate which provided access to higher-grade faces.Morila's production for the final quarter of the year is anticipated to approachthe level required to achieve the revised annual forecast of 475 000 ounces. The Loulo mine achieved planned gold production, despite an exceptionally wetseason and equipment availability constraints on the part of the miningcontractor. These factors had a negative impact on the mix of hard and soft orefed to the mill, resulting in a higher percentage of harder Gara ore in the mix. Gara ore is very abrasive when fed on its own which impacted on crusher linerand grinding media consumption, and consequently on unit costs. "Given the odds stacked against them, Loulo's management team did very well toachieve the planned gold production of 58 020 ounces at total cash costs ofUS$398 per ounce (cash operating cost of US$363 per ounce). The mine is stillon track to achieve and perhaps better its forecast production of 250 000 ouncesfor the year." Also at Loulo, progress on the twin declines for the Yalea undergrounddevelopment was slowed down by poor ground conditions. At the end of thequarter, the declines had been developed to some 460 metres and were at avertical depth of 86 metres. "Once we're through the unstable weathered zone, the pace will pick up again andit should then take us about 10 weeks to intersect the orebody. That is nowmore likely to be early in 2008 than towards the end of this year, as weoriginally expected, but the integrity of the declines and the safety of theworkers are more important than the rate of advance. This slight delay shouldnot affect Loulo's projected overall production profile but may result in thedeferring of some costs to next year," Bristow said. He noted the declarationof an additional 386 000 ounces at Yalea resulting from the completion of a newdesign and mining plan for the Yalea South extension. Meanwhile, the rescoping exercise designed to update the prefeasibility study onthe Tongon project has shown a 41% increase to 4.39 million ounces in the totalresource, with 37% converted to reserves. The expanded total mineable resourceof 2.79 million ounces will support a larger operation than originally envisagedand the plant's design throughput is being increased from 200 000 tonnes permonth to 300 000 tonnes, with a life of mine exceeding 10 years. The emphasisat Tongon is now on continuing with the next phase of infill and definitiondrilling and completing the bankable feasibility study. This drilling isdesigned to convert the remaining mineable resource to reserve and could alsolead to an increase in the average grade of the mineable material due toimproved drillhole density and a commensurate improvement in orebody definition,particularly in the southern zone and the shallower regions of the northern zoneorebodies. On the exploration front, Bristow said the company had added significantbrownfields elements, notably around Loulo and Tongon, to the portfolio ofgreenfields prospects which had traditionally driven its organic growth. With its West African exploration teams now back in the field after the annualwet season break, there was a strong focus on the Faraba, Loulo 3 and Babotoprospects around Loulo as well as the adjacent Bambadji joint venture. In Coted'Ivoire, a number of promising targets would be evaluated on the Nielle permit,which hosts Tongon, as well as on the company's other permits in that highlyprospective region. These include the Tiasso walk-up drill target on theBoundiali permit. Bristow said there were a number of significant greenfields exploration playslocated in the six countries across West and East Africa where RandgoldResources has a presence. He added that the company would pursue corporate andacquisition opportunities provided they outranked its own organic growthprospects. RANDGOLD RESOURCES ENQUIRIES: Chief Executive Financial Director Investor & Media RelationsDr Mark Bristow Graham Shuttleworth Kathy du Plessis+44 788 071 1386 +44 20 7557 7730 +44 20 7557 7738+44 779 775 2288 +44 779 614 4438 Email: [email protected]+223 675 0122 Website: www.randgoldresources.com ----------------------------------------------------REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2007 * Solid operating performance* Gold production up 5%* Costs in line* Net profit up 69%* Tongon resources up 41% to a total of 4.39Moz; 37% converted to reserves* Rescoping of prefeasibility study at Tongon supports a larger project* Significant brownfield exploration potential highlighted at Loulo and Tongon Randgold Resources Limited had 69.3 million shares in issue as at 30 September2007 SUMMARISED FINANCIAL INFORMATION US$000 Quarter Quarter Quarter 9 months 9 months ended ended ended ended ended 30 Sep 30 Jun 30 Sep 30 Sep 30 Sep 2007 2007 2006 2007 2006 Gold sales# 70 701 66 220 63 178 199 986 193 860Total cash costs* 38 189 38 029 32 504 111 225 94 415Profit from mining activity 32 512 28 191 30 674 88 761 99 445*Exploration and corporate 7 872 8 594 6 768 22 987 21 393expenditureProfit before income tax 18 319 10 034 18 302 44 578 58 210Net profit 11 540 6 848 12 746 31 136 40 086Net profit attributable to 11 474 5 764 12 285 28 656 37 584equity shareholdersNet cash generated from 2 262 14 663 17 818 30 492 61 765operationsCash and cash equivalents 131 086 137 313 155 320 131 086 155 320Attributable production+ 110 247 105 393 107 002 324 838 331 379(ounces)Group total cash costs per 346 361 304 342 285ounce*+ (US$)Group cash operating costs 305 321 265 303 247per ounce*+ (US$) # Gold sales does not include the non-cash profit/(loss) on the roll forward ofhedges. * Refer to explanation of non-GAAP measures provided. + Randgold Resources consolidates 100% of Loulo and 40% of Morila. COMMENTS Gold sales for the quarter of US$70.7 million increased by 7% from the previousquarter and by 12% from the corresponding quarter in 2006. This is mainly theresult of the increased ounces produced at Morila, due to improved grades. Thehigher average gold price received also contributed to the increase. Total cash costs of US$38.1 million were in line with the previous quarter andup from the September 2006 quarter. Due to the excessive rains and equipmentavailability constraints during the quarter, Loulo experienced operationalissues which resulted in an increased plant feed of abrasive ore from the Garapit. This contributed to a rise in unit costs associated with grinding media andcrusher liners, offset by the decrease in unit costs at Morila during thequarter due to higher grades and associated increased gold production. Cashcosts and total cash costs per ounce decreased by 5% and 4% respectively fromthe previous quarter due to the increase in ounces produced. The higher sales and steady costs resulted in an increase in profit from miningover the previous quarter and the corresponding quarter in 2006. Net profit of US$11.5 million was up 69% from the previous quarter (US$6.8million) whilst slightly lower than the September 2006 quarter (US$12.7million). The significant improvement from last quarter was a result of theincreased profit from mining, as well as exchange profits of US$1.1 millionbooked in the quarter due to the weakening of the dollar against the euro andlower exploration expenditure during the wet season. The decrease compared tothe corresponding period in 2006 is mainly due to increased production costs(increased by 17%), as well as a loss of US$2.2 million booked on hedgecontracts during the current quarter which have been rolled forward to matchfuture sales, compared to a profit of $0.5 million in the September 2006quarter. Total cash costs for the nine months ended 30 September 2007 of US$111.2 millionincreased from US$94.4 million for the nine months ended 30 September 2006,mainly due to increases in mining contractor costs at Loulo with theintroduction of blasting from July 2006 and the processing of harder ore fromthe Gara pit, taken together with the overall inflation increases in the miningindustry, specifically relating to oil, steel and plant consumables. Cash and cash equivalents were US$131.1 million at 30 September 2007 compared toUS$143.4 million at 31 December 2006. Capital expenditure during the 9 monthsended 30 September 2007 of US$38 million included expenditure on the undergrounddevelopment at Loulo (US$22.2 million), the completion of the additional 4 CILtanks, expenditure on the thickener, as well as the tailings dam at Loulo. OPERATIONS LOULO Loulo produced 58 020 ounces of gold during the quarter at a total cash cost ofUS$398/oz (cash operating cost of US$363/oz), compared to last quarter's recordproduction of 70 660 ounces at US$340/oz (cash operating cost of US$304/oz). The mining contractor continued to struggle with the availability of its loadingequipment but by the end of the quarter, they had mobilised additionalequipment. As a result of the poor performance of the mining contractor, plantthroughput was negatively affected as the stockpiles intended for the annual wetseason had been depleted in the previous quarter and ore, mainly from the Garapit, was fed directly to the plant. This in turn impacted on the operation'sability to produce the required tonnage at the budgeted cost, as the ore fromthe Gara pit is particularly abrasive when fed on its own, which resulted insubstantially higher than normal consumption of crusher liners and grindingmedia, partially offset by lower mining costs and improved recoveries. Shouldthe additional equipment be deployed timeously, the contractor will be in aposition to meet its contractual obligations and there should be an increase inoperational flexibility. LOULO RESULTS Quarter Quarter Quarter 9 months 9 months ended ended ended ended ended 30 Sep 30 Jun 30 Sep 30 Sep 30 Sep 2007 2007 2006 2007 2006MiningTonnes mined (000) 4 202 3 616 4 830 13 502 12 805Ore tonnes mined (000) 547 517 784 1 722 1 887MillingTonnes processed (000) 599 683 588 1 969 1 940Head grade milled (g/t) 3.2 3.3 3.2 3.2 3.0Recovery (%) 94.9 94.6 95.2 94.4 93.3Ounces produced 58 020 70 660 57 123 196 588 173 033Average price received+ (US$ 605 605 548 584 560/oz)Cash operating costs* (US$/ 363 304 317 316 294oz)Total cash costs* (US$/oz) 398 340 350 350 329Profit from mining activity* 12 079 18 711 11 125 46 127 42 266(US$000)Gold sales*+ (US$000) 35 191 42 755 31 110 114 979 99 173 Randgold Resources owns 80% of Loulo with the Government of Mali owning 20%.The Government's share is not a free carried interest. Randgold Resources hasfunded the Government portion of the investment in Loulo by way of shareholderloans and therefore controls 100% of the cash flows from Loulo until theshareholder loans are repaid. Randgold Resources consolidates 100% of Loulo and shows the minority interestseparately. * Refer to explanation of non-GAAP measures provided. + Includes the impact of 19 254 ounces for the quarter (quarter ended 30 June2007: 19 247 ounces) delivered into the hedge at US$438/oz (quarter ended 30June 2007: US$433/oz). MORILA Morila produced 130 568 ounces of gold during the quarter at a total cash costof US$289/oz (cash operating cost of US$241/oz), as opposed to 86 832 ounces atUS$403/oz (cash operating cost of US$355/oz) in the previous quarter. Theincrease in gold production was as a result of a much better mining rateenabling access to the higher grade faces. The increase in milled grade, from2.8g/t to 4.3g/t, resulted in increased lockup in the plant. This wascompounded by operational issues, specifically the failure of impellers in theflotation tanks, without which the gold produced could have been significantlyhigher. MORILA RESULTS Quarter Quarter Quarter 9 months 9 months ended ended ended ended ended 30 Sep 30 Jun 30 Sep 30 Sep 30 Sep 2007 2007 2006 2007 2006 MiningTonnes mined (000) 6 765 5 379 4 862 17 159 16 927Ore tonnes mined (000) 1 609 791 1 261 3 335 4 331MillingTonnes processed (000) 1 030 1 052 1 007 3 137 3 052Head grade milled (g/t) 4.3 2.8 4.2 3.5 4.4Recovery (%) 91.2 91.3 90.8 91.6 91.8Ounces produced 130 568 86 832 124 698 320 625 395 864Average price received (US$ 692 668 622 673 603/oz)Cash operating costs* (US$/ 241 355 206 284 195oz)Total cash costs* (US$/oz) 289 403 251 330 237Profit from mining activity* 51 083 23 700 48 872 106 585 142 947(US$000)Attributable (40%proportionatelyconsolidated)Gold sales (US$000) 35 511 23 465 32 068 85 007 94 687Ounces produced 52 227 34 733 49 879 128 250 158 346Profit from mining activity* 20 433 9 480 19 549 42 634 57 179(US$000) * Refer to explanation of non-GAAP measures provided. Production for the final quarter of the year, which will involve draw-down ofthe larger than planned lock-up, is anticipated to approach the level requiredto achieve the revised annual forecast of 475 000 ounces. PROJECTS AND EVALUATION LOULO UNDERGROUND DEVELOPMENT PROJECTS Yalea After a good start, the underground development at Yalea was slowed down thisquarter by difficulties experienced in developing through poor ground associatedwith a weathered zone. In order to deal with the ground conditions and toensure the longevity of the twin declines, steel arches with steel reinforcingbetween them are being installed after each blast, followed by the erection ofshuttering and pouring of concrete. This encases the perimeter of each tunnelin solid steel-reinforced concrete providing safety for workers and ensuring theintegrity of the tunnels for the plus twenty year life of the mine. The declines have now been developed 460 metres from surface at a depth of 86metres. While every endeavour will be made to access the ore this year, our paramountconcerns are safety and the installation of efficient infrastructure to serve along life underground mine. Consequently, we are developing plans to make upfor any shortfall that is experienced this year by increased production nextyear. The construction of the concrete tunnels inside the boxcut continued during thequarter. Both decline floors have been completed (with the exception of 25metres on the conveyor decline portal section) and work started on the firstwall and roof sections of the vehicle decline. The steel work is all on siteand steel erection is progressing well. Other site construction work on surfacecontinued through the quarter. It is expected that the last outstanding work onthis phase, the fuel depot, will be completed during the current quarter. The underground project is still relatively new and is subject to continuousenhancement and optimisation. One such enhancement is the addition of the areain Yalea South which has up until now been excluded from mine planning due tothe weathering profile that extends to depth in this area. A total of 2 664 107tonnes is mineable from the Yalea South extension at a grade of 4.51g/t,yielding 385 927 ounces. The scheduling of this area with the rest of Yalea iscurrently underway. Gara At Gara, three infill diamond holes have been planned for the current quarter.These will help to improve the delineation of the high grade areas at depth,allowing them to be incorporated into the mine plan. TONGON PROJECT The results of an updated prefeasibility scoping study have shown a substantialincrease in the reserves and resources at the Tongon project with totalresources increasing by 41% to 4.39Moz. The intensive drilling programmecompleted before the onset of the wet season (20 000 metres plus) has allowedfor remodelling of both the southern and northern zones and construction ofrevised grade models. Updated mineral resource Tonnes Grade Ounces (Mt) (g/t) (Mozs)Southern zoneIndicated 19.44 2.42 1.51Inferred 23.33 2.24 1.68Northern zoneOpen pittableIndicated 10.39 2.40 0.80Inferred 0.34 3.14 0.03Potential undergroundIndicatedInferred 3.97 2.88 0.37Total indicated 29.83 2.41 2.31Total inferred 27.65 2.34 2.08 Open pit resources are these resources falling within a US$800/oz pit shell andpotential underground resources for the northern zone are those resources abovea 2g/t pay limit occuring below the US$800/oz pit shell. In pit reserves andmineable resources were calculated using a gold price of US$525/oz pit shell. Preliminary reserve and additional potentially Tonnes Grade Ouncesmineable resource (Mt) (g/t) (Mozs)ReservesSouthern zoneProbable 16.04 2.29 1.18Northern zoneProbable 5.85 2.29 0.43Total probable 21.88 2.29 1.61 Potentially mineable resourceSouthern zone 16.83 2.17 1.17Total 38.72 2.24 2.79 The strip ratio for the southern zone is 3.4:1 and for the northern zone 6.5:1,giving a combined ratio of 3.8:1. Dilution of 15% and 10% is added to the southern zone and northern zone in situtonnes and 2% gold loss to the southern zone and 3% to the northern zonerespectively. The increase in resources and the conversion to indicated resources (previously35.96Mt at 2.69g/t for 3.11Mozs) have led us to review the potential scale ofoperations. We are now designing for a plant throughput of 300 000 tonnes permonth, as opposed to the previous design of 200 000 tonnes per month. Life ofmine is currently estimated at 10.5 years. Our plan contemplates the use of contract mining at Tongon, but we wouldpurchase the mining equipment. Preliminary pricing based on the lowerthroughputs have already been received so we expect these costs per tonne to beadjusted favourably recognising the higher plant throughput as described above. Metallurgical testwork is still in progress but results have so far confirmedprefeasibility studies and in fact improved on them. Variability testing across the orebodies on each type of material (oxide,transition and sulphide) is being carried out at our Loulo laboratory as well as"process scouting" on sulphides and grindability testwork at SGS laboratories inJohannesburg, South Africa. Oxide and transition recoveries were all excellent at greater than 90%. The previous area of concern, namely Tongon northern and southern zonesulphides, returned good results (86% and 84% respectively) without a flotationstep. Gravity recovery testwork returned good results so this could form part of thefinal flowsheet. Flotation response testwork is still awaited before wefinalise the flowsheet. SENET, an engineering and project management company with considerableexperience of gold projects in West Africa, has been commissioned to undertakethe feasibility study design and engineering in close cooperation with ourcapital projects team. Environmental consultants Digby Wells and Associates have completed a scopingstudy and have concluded there are no fatal flaws to the project. They havecompiled a terms of reference for the required public participation processwhich is scheduled to start in the first quarter of 2008. Financial evaluation of the project is underway; based on preliminary capitaland operational expenditure figures, life of mine cash operating cost is US$341/oz and total cash cost is US$359/oz (includes 3% royalty to the Government).Total capital including financing, purchase of the mining fleet and ongoingcapital amounts to US$267 million. No optimisation has been carried out yet. This is essentially a first look atthe project economics and will be further refined. Infill drilling is plannedin both the northern and southern zones to better delineate the geologicalcontrols and the grade distributions within both pits. This is expected toallow for the modelling of potential hangingwall zones in the northern zone aswell as allowing for a more selective approach to mining in the south. Atpresent the grade in the upper portions of the northern zone model is beingnegatively affected by the generally lower grade tenor returned by the widespaced surface trenching. Infill shallow RC drilling will allow us to betterdistinguish the grades in these upper portions. Geotechnically the slope anglesused for the scoping study are considered conservative and more revised slopeswill be designed in conjunction with SRK, once they have completed a site visitand conducted testwork on the various lithology types. EXPLORATION ACTIVITIES In West Africa, the third quarter of the year traditionally observes a pause infield activities due to the annual rains and this year has been no exception.The teams have been busy compiling the data collected during the field season,completing interpretations and developing programmes and budgets for theforthcoming season. At Loulo, three dimensional models for Faraba and Baboto were prepared andadditional drill holes proposed to further evaluate both targets. At Loulo 3, anewly identified north-south structure places previous results in better contextand highlights a high grade target. Drilling over a 500 metre strike length islimited to one diamond hole, an RC hole and a number of RAB drill holes: diamondhole L3DH26 - 6 metres at 8.66g/t; RC hole L3RC01 - 13 metres at 11.87g/t; andRAB holes RAB687 - 27 metres at 5.98g/t; RAB692 - 8 metres at 11.64g/t; RAB684 -12 metres at 3.65g/t. At Morila, research has demonstrated that a specific mafic volcanic horizonhosts the ore deposit and marks a change in sedimentation from fine to coarse.Exploration data is now being modelled to extrapolate this unit away from themine for drill testing. In Senegal, the team at Bambadji has been concentrating on mapping andinterpretation of the geology, with particular focus on the Senegal - Mali shearzone (SMS). This is a 5 kilometre wide zone of intense deformation and stronggold anomalism, along a strike length of over 25 kilometres. A targetgeneration exercise has highlighted 34 targets, many of which have received nofollow-up work. In addition, within our established portfolio on the Sabodalabelt, we have the Massawa target with 2.8 kilometres of bedrock mineralisation,the 7 kilometre Sofia corridor and Delya targets for follow-up work. FurtherRAB drilling is due to commence in the final quarter of the year in order toprioritise additional diamond drill holes. In Burkina Faso, there is further upside at Kiaka both to the north, south andin the hangingwall which could significantly add to the 2 million ouncegeological estimate. In addition, the metallurgical test work returned veryencouraging gold recoveries ranging from 80% to 98%. Elsewhere in the permitportfolio the team are developing targets for drilling in the next field season. In Ghana, we have developed a portfolio of projects which are beginning toproduce targets for follow-up work, most notably on the Bole north east permit,in the north of the country and close to the Burkina Faso border. Early stageexploration has returned coherent gold in soil anomalies over a 14 kilometrestrike, adjacent to a major regional structure. First pass reconnaissancetrenching confirms bedrock mineralisation associated with strongly foliated andiron rich metasediments. In Cote d'Ivoire, we have continued to make good progress with the feasibilitydrilling at Tongon. During the quarter we completed 25 holes for 5 767 metresbefore the rain stopped access to drill sites and we ended the field seasonhaving completed 94 holes for 20 407 metres of diamond drilling. In the northern zone, as well as concentrating on defining the in pit resources,we have completed four deep holes, to a vertical depth of 250 metres below thesurface. All four holes confirmed the continuation of the mineralised structurewith very encouraging results including: TND127 - 23.15 metres at 3.71g/t from257.69 metres, including 10.99 metres at 4.94g/t from 269.45 metres; and TND130- 22.64 at 3.13g/t from 290.32 metres. Drilling has also confirmed a 400 metrelong dilation zone in the east which is still open; the last hole TND128returned 4.86 metres at 3.83g/t. Tongon northern zone: diamond drill results Q3 - 2007 Intersection IncludingHole Id From To Width Grade (m) (m) (m) (g/t) TND 073 67.28 68.48 1.20 9.69TND 074 96.10 103.80 7.70 1.13 110.40 114.07 3.67 1.79TND 075 67.00 82.95 15.95 1.25TND 076 107.06 110.68 3.62 2.10 116.07 120.35 4.28 1.69TND 101 109.88 110.72 2.78 2.65TND 102 68.00 72.10 4.10 4.49 110.39 131.70 21.31 0.94 164.00 178.00 14.00 1.77TND 111 120.45 125.90 5.45 3.55 128.73 159.80 31.07 1.27TND 112 141.10 187.47 46.37 3.41TND 113 88.90 96.45 7.55 1.01 101.78 124.59 22.81 3.06 2.98m @ 10.87g/tTND 114 137.00 138.86 1.86 2.47 148.78 161.02 12.24 2.03 164.78 190.53 25.75 2.39TND 115 98.70 112.94 14.24 1.74 116.60 119.76 3.16 1.63 122.92 127.10 4.18 1.54TND 116 174.19 176.71 2.52 67.00 1.72m @ 98.67g/t 180.83 181.65 0.82 12.60TND 117 86.60 117.64 31.04 1.95TND 118 No mineralisation - intrusionTND 119 No mineralisation - intrusionTND 120 No mineralisation - intrusionTND 121 94.00 97.42 3.42 2.48TND 122 72.46 75.34 2.88 1.44 81.00 83.86 2.86 1.12TND 123 63.85 66.00 2.15 1.09 86.00 93.00 7.00 2.31TND 124 77.51 108.00 30.49 2.95 5.96m @ 5.87g/tTND 125 90.49 95.45 4.96 1.26TND 126 162.00 165.00 3.00 1.12TND 127 227.52 238.40 10.88 2.87 4.98m @ 4.74g/t 257.69 280.84 23.15 3.71 10.99m @ 4.94g/t 293.18 295.00 1.82 6.52TND 128 123.46 128.32 4.86 3.84TND 129 181.80 182.73 0.93 10.00 245.90 253.23 7.33 1.43 269.47 272.96 3.49 1.55TND 130 290.32 316.64 26.32 2.85 6.68m @ 5.63g/tTND 131 253.14 262.82 9.68 1.76 6.15m @ 2.44g/tTND 132 99.00 117.90 18.90 3.43 11.90m @ 5.10g/t The southern zone is more geologically complex with multiple zones trending in a045 degrees to 050 degrees direction with variable dips from 075 degrees to 060degrees to the north west. The ore zones appear lensoid in shape and thus theirstrike and depth continuity is variable. Previously it was interpreted that afault, controlling the course of the Badeni River, terminated mineralisation inthe southwest of the orebody. However recent drilling has confirmed thecontinuation of mineralisation for an additional 200 metres; TND094 - 13.60metres at 1.89g/t; TND151 - 13.60 metres at 3.87g/t, mineralisation is stillopen along strike. To the northeast previous drilling was wide spaced (200metres between drill lines) nine holes for 1 872 metres have been completed,results have been received for three holes, which confirm continuity ofmineralisation: TND156 - 3 metres at 4.34g/t; TND158 - 4.47 metres at 7.09g/t;and TND159 - 18.42 metres at 3.77g/t. Tongon southern zone: diamond drill results Q3 - 2007 Hole Id Intersection Including From To Width Grade (m) (m) (m) (g/t)TND 084 216.80 237.18 20.38 2.49 272.77 282.82 10.05 3.92TND 088 146.00 149.00 3.00 1.79 158.90 170.46 11.56 0.81 175.24 182.81 7.57 1.21 190.81 212.55 21.74 3.51 6.26m @ 5.52g/t 8.38m @ 4.64g/t 220.54 236.30 15.76 1.05 240.54 243.62 3.08 5.01 0.99m @ 14.16g/t 247.42 254.74 7.32 4.13 298.54 303.79 5.25 8.32 313.00 318.48 5.48 1.43 323.00 343.96 20.96 1.11 364.00 374.56 11.56 2.78TND 089 167.00 170.00 3.00 1.11TND 090 110.00 114.00 4.00 2.47TND 093 43.00 47.00 4.00 1.83 112.00 114.00 2.00 1.72 158.66 160.66 2.00 1.06TND 094 71.75 73.70 1.95 3.32 101.20 114.80 13.60 1.89 118.00 124.00 6.00 1.72TND 095 93.00 96.00 3.00 1.85 132.90 139.00 6.10 1.13 143.40 153.00 9.60 2.23 157.81 165.00 7.19 3.82 197.00 200.00 3.00 7.11TND 096 117.98 121.05 3.07 1.37 124.00 138.98 14.98 3.56 144.00 152.00 8.00 2.87 160.00 163.00 3.00 3.79 194.32 200.10 5.78 1.78 226.39 231.25 4.86 2.47 237.02 248.00 10.98 2.07TND 097 170.17 188.00 17.83 2.31 4.00m @ 6.63g/t 195.98 199.00 3.02 5.58 232.10 234.65 2.55 1.47TND 098 131.17 133.13 1.96 2.10 202.10 209.00 6.90 1.29 213.00 219.75 6.75 1.24 235.35 241.80 6.45 3.50TND 099 156.03 158.00 1.97 2.51 169.00 172.00 3.00 1.08 176.10 185.49 9.39 1.47 188.75 196.00 7.25 2.98TND 150 67.00 69.80 2.80 1.30TND 151 73.40 79.40 6.00 1.83 92.00 96.50 4.50 1.71 117.00 121.40 4.40 1.72 146.00 159.60 13.60 3.87TND 152 78.00 80.27 2.27 3.63 93.00 98.27 5.27 2.85TND 153 15.39 16.55 1.16 4.29TND 154 4.00 10.62 6.62 1.31TND 155 121.35 125.10 3.75 1.05 186.03 188.30 2.27 1.63TND 156 213.00 216.00 3.00 4.34TND 157 52.40 54.70 2.30 4.96 58.65 61.00 2.35 1.73 80.16 85.26 5.10 1.81TND 158 65.19 67.90 2.71 1.52 94.00 98.47 4.47 7.09 2.68m @ 10.74g/t 103.93 107.11 3.18 1.52TND 159 14.41 32.83 18.42 3.77 4.03m @ 6.99g/t 3.41m @ 9.24g/t 44.47 46.66 2.29 3.00TND 161 84.77 89.00 4.23 1.59TND 162 2.50 6.15 3.65 1.25 12.33 15.30 2.97 1.00 18.93 21.10 2.17 2.45 70.35 73.27 2.92 1.83 83.93 89.85 5.92 1.17 164.73 170.81 6.08 6.18 183.81 188.72 4.91 2.24TND 163 AwaitedTND 164 179.95 184.12 4.17 1.71TND 165 44.84 52.71 7.87 1.24 110.94 113.11 2.17 1.33 129.13 136.09 6.96 2.86TND 166 177.57 245.28 67.71 3.56 255.88 261.02 5.14 6.38 355.48 357.43 1.95 3.26 362.27 365.12 2.85 1.47 369.00 371.15 2.15 2.60TND 167 27.00 29.00 2.00 1.22 65.60 67.73 2.13 2.36 75.00 85.30 10.30 4.35 4.06m @ 8.49g/t 102.40 104.90 2.50 3.90 157.58 160.00 2.42 1.84TND 168 10.00 14.90 4.90 2.40 28.74 32.20 3.46 1.51 45.94 49.60 3.66 1.36 In Tanzania at Miyabi, a joint venture between African Eagle and RandgoldResources, phase 1 diamond drilling consisting of 20 holes for 4 078 metres wascompleted on two lines across the northeast trending Miyabi Structural Corridor. Results so far do not indicate a larger mineralised target beyond thecurrently defined resources of 520 000 ounces at 1.3g/t. However the geologicaland structural data is enabling the construction of a three dimensional model todrive future exploration. Lithologies strike east west and have been foldedinto a series of anticlines and synclines which in turn have been transgressedby northeast trending shears. Where the shears intersect prospectivelithological horizons, such as banded iron formations, gold mineralisationoccurs. The generative team also continues with its programme of identifyingand securing new opportunities, with the focus being on terrains which have notreceived as much attention in the past. CONSOLIDATED INCOME STATEMENT US$000 Quarter Quarter Quarter 9 months 9 months ended ended ended ended ended 30 Sep 30 Jun 30 Sep 30 Sep 30 Sep 2007 2007 2006 2007 2006REVENUESGold sales on spot 75 478 70 752 67 205 216 713 201 130Loss on matured hedges (4 777) (4 532) (4 027) (16 727) (7 270)Non-cash (loss)/profit on (2 152) (2 842) 577 (4 759) (4 700)roll forward of hedgesTotal 68 549 63 378 63 755 195 227 189 160OTHER INCOMEInterest income 1 829 1 779 1 889 5 437 5 692Other income 210 255 550 632 730Total other income 2 039 2 034 2 439 6 069 6 422Total income 70 588 65 412 66 194 201 296 195 582COSTS AND EXPENSESMine production costs 33 146 30 800 29 673 95 391 86 150Movement in production (2 895) (472) (3 528) (7 107) (12 521)inventory and orestockpilesDepreciation and 5 673 5 821 6 386 17 566 16 312amortisationGeneral and administration 3 097 3 214 2 079 9 329 7 777expensesMining and processing 39 021 39 363 34 610 115 179 97 718costsTransport and refinery 316 296 179 859 458costsRoyalties 4 525 4 191 4 101 12 753 12 551Exploration and corporate 7 872 8 594 6 768 22 987 21 393expenditureOther losses/(gains) - net - - 323 - 323Exchange losses/(gains) - (1 109) 989 296 504 (10)netUnwind of discount on 96 96 84 288 252provisions forrehabilitationInterest expense 1 548 1 849 1 531 4 148 4 687Profit before income tax 18 319 10 034 18 302 44 578 58 210Income tax expense (6 779) (3 186) (5 556) (13 442) (18 124)Net profit 11 540 6 848 12 746 31 136 40 086Attributable to:Equity shareholders 11 474 5 764 12 285 28 656 37 584Minority shareholders 66 1 084 461 2 480 2 502 11 540 6 848 12 746 31 136 40 086Basic earnings per share 0.17 0.08 0.18 0.42 0.55(US$)Fully diluted earnings per 0.16 0.08 0.18 0.41 0.54share (US$)Average shares in issue 69 082 68 863 68 474 68 922 68 291(000) The results have been prepared in accordance with International FinancialReporting Standards (IFRS). CONSOLIDATED BALANCE SHEET US$000 At At At 30 Sep 31 Dec 31 Sep 2007 2006 2006AssetsNon-current assetsProperty, plant and equipment 261 732 241 300 237 168Cost 335 837 297 839 287 175Accumulated depreciation and amortisation (74 105) (56 539) (50 007)Deferred taxation 1 721 2 993 2 696Long-term ore stockpiles 48 119 41 614 29 522Receivables 15 220 13 702 -Total non-current assets 326 792 299 609 269 386Current assetsInventories and stockpiles 38 007 34 200 40 473Receivables 50 258 34 999 52 169Cash and cash equivalents 131 086 143 356 155 320Total current assets 219 351 212 555 247 962Total assets 546 143 512 164 517 348Shareholders' equity 361 087 336 063 328 911Minority interest 7 187 4 707 3 897Total equity 368 274 340 770 332 808Non-current liabilitiesLong-term borrowings 44 427 25 666 36 777Loans from minority shareholders in subsidiaries 3 000 2 773 2 663Deferred taxation 462 462 -Financial liabilities - forward gold sales 49 527 39 969 40 128Provision for rehabilitation 9 120 8 842 9 751Total non-current liabilities 106 536 77 712 89 319Current liabilitiesFinancial liabilities - forward gold sales 25 120 27 525 22 982Current portion of long-term borrowings 3 616 24 818 24 730Accounts payable and accrued liabilities 41 038 39 461 42 575Taxation payable 1 559 1 878 4 934Total current liabilities 71 333 93 682 95 221Total equity and liabilities 546 143 512 164 517 348 The increase in property, plant and equipment is due to expenditure incurred onthe underground development at Loulo, including the development of the twindeclines, acquisition of the underground fleet, the completion of the 4 CILtanks, expenditure on the thickener, as well as the tailings dam at Loulo. Long-term ore stockpiles increased due to an increase in ore stockpiles atMorila in line with the life of mine plan. Inventories and stockpiles increased mainly due to a build up of gold in processat Morila at the end of September 2007, together with the increase in the shortterm portion of ore stockpiles at Morila. The increase in receivables is the result of an increase in trade debtors due tothe timing of gold shipments at month end at both mines. Cash and cash equivalents decreased as a result of capital expenditure of US$38million for the year, partially offset by the cash generated by operations. The movement in long-term borrowings and the short-term portion thereof is dueto original project finance facility which required a repayment of US$21.3million in 2007. In May 2007 the facility was replaced by a new corporatefacility which does not require any repayments within the next 12 months. The increase in financial liabilities of forward gold sales is due to anincrease in the negative marked-to-market valuation of contracts held at 30September 2007. The gold price was US$743 at 30 September 2007. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Number of Share Share Other ordinary capital premium reserves shares US$000 US$000 US$000Balance - 31 Dec 2005 68 072 864 3 404 208 582 (41 000)Net income - - - -Movement on cash flowhedges -Transfer to income - - - 5 023statementFair value movement on - - - (20 020)financial instrumentsTotal recognised income/ - - - (14 997)(loss)Share-based payments - - - 1 817Share options exercised 486 867 24 2 661 -Exercise of options - - 502 (502)previously expensed underIFRS 2Shares vested# 6 830 - 108 (108)Balance - 30 Sept 2006 68 566 561 3 428 211 853 (54 790)Balance - 31 Dec 2006 68 763 561 3 440 213 653 (59 430)Net income - - - -Movement on cash flowhedges -Transfer to income - - - 4 453statementFair value movement on - - - (7 153)financial instrumentsTotal recognised income/ - - - (2 700)(loss)Share-based payments - - - 1 618Share options exercised 538 667 27 4 297 -Exercise of options - - 1 280 (1 280)previously expensed underIFRS 2Shares vested# 10 102 - 170 (170)Dividend relating to 2006 - - - -Balance - 30 Sep 2007 69 312 330 3 467 219 400 (61 962) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued) Accumulated Total Minority Total profits attributable interest equity US$000 to equity US$000 US$000 shareholdersBalance - 31 Dec 2005 130 836 301 822 1 395 303 217Net income 37 584 37 584 2 502 40 086Movement on cash flowhedges -Transfer to income - 5 023 - 5 023statementFair value movement on - (20 020) - (20 020)financial instrumentsTotal recognised 37 584 22 587 2 502 25 089income/(loss)Share-based payments - 1 817 - 1 817Share options - 2 685 - 2 685exercisedExercise of options - - - -previously expensedunder IFRS 2Shares vested# - - - -Balance - 30 Sept 2006 168 420 328 911 3 897 332 808Balance - 31 Dec 2006 178 400 336 063 4 707 340 770Net income 28 656 28 656 2 480 31 136Movement on cash flowhedges -Transfer to income - 4 453 - 4 453statementFair value movement on - (7 153) - (7 153)financial instrumentsTotal recognised 28 656 25 956 2 480 28 436income/(loss)Share-based payments - 1 618 - 1 618Share options - 4 324 - 4 324exercisedExercise of options - - - -previously expensedunder IFRS 2Shares vested# - - - -Dividend relating to (6 874) (6 874) - (6 874)2006Balance - 30 Sep 2007 200 182 361 087 7 187 368 274 # Restricted shares were issued to directors as remuneration. The transferbetween "other reserves" and "share premium" in respect of the shares vestedrepresents the cost calculated in accordance with IFRS 2. CONSOLIDATED CASHFLOW STATEMENT US$000 9 months 9 months ended ended 30 Sep 30 Sep 2007 2006Profit before income tax 44 578 58 210Adjustment for non-cash items 24 218 23 425Effects of changes in operating working capital (29 126) (10 817)itemsIncome tax paid (9 178) (9 053)Net cash generated from operating activities 30 492 61 765Additions to property, plant and equipment (37 998) (50 844)Financing of contractors - 105Net cash used by investing activities (37 998) (50 739)Ordinary shares issued 4 324 2 685Decrease in long-term loans (2 214) (10 843)Dividends paid to company's shareholders (6 874) -Net cash used by financing activities (4 764) (8 158)Net decrease in cash and cash equivalents (12 270) 2 868Cash and cash equivalents at beginning of year 143 356 152 452Cash and cash equivalents at end of the period 131 086 155 320 NON-GAAP MEASURES Total cash costs and cash cost per ounce are non-GAAP measures. Total cashcosts and total cash costs per ounce are calculated using guidance issued by theGold Institute. The Gold Institute was a non profit industry associationcomprised of leading gold producers, refiners, bullion suppliers andmanufacturers. This institute has now been incorporated into the NationalMining Association. The guidance was first issued in 1996 and revised inNovember 1999. Total cash costs, as defined in the Gold Institute's guidance,include mine production, transport and refinery costs, general andadministrative costs, movement in production inventories and ore stockpiles,transfers to and from deferred stripping where relevant and royalties. Underthe company's accounting policies, there are no transfers to and from deferredstripping. Total cash costs per ounce are calculated by dividing total cash costs, asdetermined using the Gold Institute guidance, by gold ounces produced for theperiods presented. Total cash costs and total cash costs per ounce arecalculated on a consistent basis for the periods presented. Total cash costsand total cash costs per ounce should not be considered by investors as analternative to operating profit or net profit attributable to shareholders, asan alternative to other IFRS or US GAAP measures or an indicator of ourperformance. The data does not have a meaning prescribed by IFRS or US GAAP andtherefore amounts presented may not be comparable to data presented by goldproducers who do not follow the guidance provided by the Gold Institute. Inparticular depreciation, amortisation and share-based payments would be includedin a measure of total costs of producing gold under IFRS and US GAAP, but arenot included in total cash costs under the guidance provided by the GoldInstitute. Furthermore, while the Gold Institute has provided a definition forthe calculation of total cash costs and total cash costs per ounce, thecalculation of these numbers may vary from company to company and may not becomparable to other similarly titled measures of other companies. However,Randgold Resources believes that total cash costs per ounce are usefulindicators to investors and management of a mining company's performance as itprovides an indication of a company's profitability and efficiency, the trendsin cash costs as the company's operations mature, and a benchmark of performanceto allow for comparison against other companies. Cash operating costs and cash operating cost per ounce are calculated bydeducting royalties from total cash costs. Cash operating costs per ounce arecalculated by dividing cash operating costs by gold ounces produced for theperiods presented. Gold sales is a Non-GAAP measure. It represents the sales of gold at spot andthe gains/losses on hedge contracts which have been delivered into at thedesignated maturity date. It excludes gains/losses on hedge contracts whichhave been rolled forward to match future sales. This adjustment is consideredappropriate because no cash is received/paid in respect of these contracts. Profit from mining activity is calculated by subtracting total cash costs fromgold sales for all periods presented. The following table reconciles total cash costs and profit from mining activityas non-GAAP measures, to the information provided in the income statement,determined in accordance with IFRS, for each of the periods set out below: US$000 Quarter Quarter Quarter 9 months 9 months ended ended ended ended ended 30 Sep 30 Jun 30 Sep 30 Sep 30 Sep 2007 2007 2006 2007 2006Gold sales on spot 75 478 70 752 67 205 216 713 201 130Loss on matured hedges (4 777) (4 532) (4 027) (16 727) (7 270)Gold sales 70 701 66 220 63 178 199 986 193 860Mine production costs 33 146 30 800 29 673 95 391 86 150Movement in production (2 895) (472) (3 528) (7 107) (12 521)inventory and orestockpilesTransport and refinery 316 296 179 859 458costsRoyalties 4 525 4 191 4 101 12 753 12 551General and administration 3 097 3 214 2 079 9 329 7 777expensesTotal cash costs 38 189 38 029 32 504 111 225 94 415Profit from mining 32 512 28 191 30 674 88 761 99 445activity FORWARD COMMODITY CONTRACTS The group's hedging position at 30 September 2007 is summarised below: Maturity date Forward Forward sales sales Ounces average US$/ozYear ended 2007 19 253 438.62Year ended 2008 80 496 429.23Year ended 2009 84 996 434.90Year ended 2010 41 748 500.38Total 226 493 445.27 The forward contracts all relate to Loulo with Morila's production beingcompletely exposed to spot gold prices. The remaining portion of the hedge bookrepresents approximately 21% of planned production at Loulo and 14% of thegroup's attributable production for the period. GENERAL The company continues to evaluate value creating opportunities throughexploration, discovery, and development and through corporate and assetacquisition opportunities. Management remains confident that the group willachieve its production forecast for the year. A forecast for the followingyear's production will be provided at the next quarterly results. D M Bristow G P ShuttleworthChief Executive Financial Director 1 November 2007 -------------------------------------------------------RANDGOLD RESOURCES UPDATES INTENSIVE DRILLING PROGRAMME BOOSTS TONGON RESOURCE AND SUPPORTS INCREASEDPROJECT SCOPE A 20 000 metre drilling programme has boosted the Tongon resource base by 41% to4.39 million ounces (indicated and inferred) and confirmed the growing view thatthis could be Randgold Resources' third world-class development in West Africa. Projects and development manager Rod Quick and his team have completed aresource evaluation which has: * delineated a wider high grade core in the northern zone that is still open to the east;* identified high grade shoots continuing to 250 metres below surface and indicating underground potential; and* identified more individual ore zones in the southern zone. "The next phase will focus on infill drilling aimed at the conversion of more ofthe inferred resources to indicated and probable reserves, increasing thecurrent figure of 1.61 million ounces," said Quick. He noted that the gradetonnage curves indicated that there would be an upside in selectively mining thebetter grades in the early years of the project. Technical general manager Adrian Reynolds said given the increase in theavailable ore, albeit at a lower grade, and considering the industry-wideincreases in capex and operating costs, the company was now planning a largerproject. Plant throughput is being increased from 200 000 to 300 000 tonnes permonth to spread the capex and overheads over a greater production base. "All aspects of the feasibility study are going well and we are on track tocomplete the work, including full permitting, by the end of 2008 as scheduled,"said Reynolds. Outside of the infill drilling programme at Tongon, the Nielle permit and ourportfolio of four other permits have great prospectivity for further discoveriesin a country which has seen little exploration. On the Nielle permit, 12 targets have been highlighted for follow-up work withTongon South at the head of the queue. This target is characterised by a strongsurface gold geochemical anomaly, one extending for more than a kilometre andhas thus far only been tested by two trenches: TST002 - 16 metres at 8.37g/t;and TST004 - 6 metres at 2.06g/t, 2 metres at 12.86g/t and 4 metres at 2.10g/t. On the Boundiali permit, some 100 kilometres west of Nielle, Tiasso is a walk-updrill target with 2 kilometres of bedrock mineralisation so far defined bytrenching with a best intersect of 25 metres at 4.39g/t. A first phase ofdiamond drilling is being designed for 2008. Elsewhere early stagereconnaissance programmes and remote sensing interpretations are identifyingtargets for follow-up work. GEOLOGICAL MODELS DRIVE EXPLORATION PROGRAMMES The hunt continues for additional ounces at Loulo on the back of a successfulexploration programme which has already added more than 10 million ounces to theresource through the discovery of new deposits and satellites. "The permit currently hosts two multi-million ounce gold deposits with numeroussatellite orebodies and exploration targets. The combination of the geologicalsetting, with the size and number of the known mineralising systems, gives usthe confidence to claim that this is one of the most prospective gold belts inAfrica," says exploration manager Joel Holliday. The exploration strategy is driven by the generation of geological models of alltargets, from grassroots to brownfields, rather than reliance on processingnumbers derived from fieldwork. The extension of these models led directly tothe discovery of the deep ore deposits at Yalea and Gara as well as a number ofsatellite bodies. The emphasis now is on finding additional deposits outsidethe existing mines and in line with this objective an EM survey is to be flownover Loulo and adjacent Bambadji in 2008. "The discovery of the next deposit at Loulo will be driven by solid geologicalmodelling based on our understanding of the existing deposits and integratedwith the various layers of exploration data," says Holliday. In addition to the EM survey over the next 15 months, the completion of a largeRAB programme at Loulo is expected to add to the targets at the base of thecompany's resource triangle. Additional diamond drilling at Faraba and Babotowill infill and extend the known mineralised structures there, while at Loulo 3a revised model will be followed up with further drilling to potentially doublethe resource. At the Bambadji joint venture, a generative study has identified10 high-priority targets and drilling programmes for 2008 will be designedduring the fourth quarter of this year. GOLD HITS 28-YEAR HIGH The gold price has broken through the US$750/oz level to reach 28-year highs andsome analysts think it is now entering a new investment-driven phase which couldsee it top its all-time high of US$850/oz. In real terms, this peak wasequivalent to over $2 250/oz today (adjusted for US CPI), suggesting the pricehas some way to go before it sets any real new records. While gold came under pressure during the initial phase of the recent creditcrunch, sentiment has since turned bullish again following the US FederalReserve's decision to cut interest rates by 50 basis points. This rally isbeing supported by fabricator purchases ahead of the Christmas period, Indianfestivals and the Chinese New Year. It is significant that the gold price hasalso been rising in euro, yen, rupee and dinar terms, indicating a true rally. Gold has appreciated by more than 17% so far this year - starting at US$640/ozon 2 January and reaching US$764/oz on 18 October - giving investors asubstantial real return. In the September quarter, the price increased by morethan US$90/oz. "Judging from market expectations of the historic price drivers and gold marketfundamentals, the outlook for the gold price remains favourable. The downsidebias to the US dollar, higher inflation expectations following record oil pricesand lower real interest rates are all gold positive," says Randgold Resourcescorporate finance manager Victor Matfield. "From a supply point of view, official sales have come in below the 500 tonnelimit, while the de-hedging trend is continuing and mine output is expected tolevel off over the next several years. On the demand side expectations are thatthe commodity market will continue to be supported by growing demand fromChinese industrialisation and world GDP growth. Jewellery demand remains strongdespite the higher gold price and the yellow metal is increasingly viewed as analternative asset to currencies. Its safe haven status is anticipated to becomefurther entrenched by continued geopolitical tension as well as the generaluncertainty in world markets." ----------------------------------------------------------------- Registered office:La Motte Chambers, La Motte Street, St Helier, Jersey JE1 1BJ, Channel Islands Registrars:Computershare Investor Services (Channel Islands) Limited,P.O. Box 83, Ordnance House, 31 Pier Road, St Helier, Jersey JE4 8PW, ChannelIslands Transfer agents:Computershare Services PLC, P.O. Box 663, 7th Floor,Jupiter House, Triton Court, 14 Finsbury Square, London EC2A 1BR Investor and media relations:For further information contact Kathy du Plessis onTelephone +44 20 7557 7738, e-mail [email protected] DISCLAIMER: Statements made in this document with respect to RandgoldResources' current plans, estimates, strategies and beliefs and other statementsthat are not historical facts are forward- looking statements about the futureperformance of Randgold Resources. These statements are based on management'sassumptions and beliefs in light of the information currently available to it.Randgold Resources cautions you that a number of important risks anduncertainties could cause actual results to differ materially from thosediscussed in the forward-looking statements, and therefore you should not placeundue reliance on them. The potential risks and uncertainties include, amongothers, risks associated with: fluctuations in the market price of gold, goldproduction at Morila and Loulo, the development of Loulo and estimates ofresources, reserves and mine life. For a discussion on such risk factors referto the annual report on Form 20-F for the year ended 31 December 2006 which wasfiled with the United States Securities and Exchange Commission (the 'SEC') on25 June 2007. Randgold Resources sees no obligation to update information inthis release. Cautionary note to US investors; the 'SEC' permits companies, intheir filings with the 'SEC', to disclose only proven and probable ore reserves. We use certain terms in this release, such as "resources", that the 'SEC' doesnot recognise and strictly prohibits us from including in our filings with the 'SEC'. Investors are cautioned not to assume that all or any parts of ourresources will ever be converted into reserves which qualify as 'proven andprobable reserves' for the purposes of the SEC's Industry Guide number 7. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Randgold Resources