29th Mar 2007 09:45
Randgold Resources Ld29 March 2007 RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNasdaq Trading Symbol: GOLD LONG-TERM GROWTH STRATEGY DRIVES HUNT FOR PROFITABLE NEW PROSPECTS; 2006 SHOWS FURTHER PROFIT RISE, INCREASE IN RESOURCE BASE London, United Kingdom, 29 March 2007 - Randgold Resources' consistentadherence to a long-term growth strategy has given it a record of value creationwith few equals in the gold mining industry, says chairman Philippe Lietard inthe company's 2006 annual report, published today. During the year the company increased its profit before tax by more than 50% toUS$74 million and started dividend payments. It ended 2006 with cash of US$143million after spending more than US$100 million on the completion of the plantat its Loulo mine, the repayment of the first third of the Loulo projectfinance, the first stage of the underground development at Loulo and its ongoingexploration programmes. Lietard says the company remains committed to its strategy of investing itsfinancial and intellectual capital in exploration to find successful operationscapable of generating profits which it can reinvest in its future to ensuresustainability. "This is particularly important in the current market, where the excitement of arising gold price seems to have shifted the industry's emphasis from buildingprofitable businesses to pursuing short-term trading opportunities," he says. "We do not know how long the bull run in the gold price will continue. However,as far as Randgold Resources is concerned, our overriding priority is tocontinue finding and developing good gold prospects and building a business thatwill be successful not only at present gold prices but also at the much lowerprice levels at which the metal has traded in the past." Lietard notes that in the challenging spheres of African mining andinternational markets, a company's success is directly linked to the skills andmotivation of its personnel. "Randgold Resources has since its inception had exceptionally competentexecutive and exploration teams. Over time, the company has also developedfirst-class skills in the evaluation, design and development of capitalprojects, operational management, corporate finance, procurement and logistics.It has also invested a great deal of effort in nurturing local managers in hostcountries, to considerable effect." As part of the continuing expansion of its intellectual base, the company hasadded two eminent international businessmen, Norborne P Cole, Jr and KarlVoltaire, to its board. Also in the report, chief executive Mark Bristow says the company's long-termapproach means that it constantly has to search beyond its existing borders forfresh profitable growth opportunities. "Exciting and demanding as the Yalea and Gara underground developments (atLoulo) are, we are already looking past them at future prospects. We can dothis because, as our record shows, our management teams are more than capable ofrunning one operation while building another and advancing a third," he says. Bristow says the Tongon project in the Cote d'Ivoire, currently at finalfeasibility study stage, could well have the makings of the company's thirdmajor mine. A development decision will be made at the end of 2008. Elsewherein Africa, the Kiaka target in Burkina Faso has emerged as a significantmineralised gold system and in Senegal, 12 advanced targets are being evaluated. "We ended the year with a total of 128 promising targets on almost 20 000 km(2)in six countries in West and East Africa. In line with our policy of constantlyseeking to widen our horizons, we have recently put together an 'African huntingteam' whose brief is to find and evaluate opportunities in prospective countrieswhere we do not already have a presence," he says. RANDGOLD RESOURCES ENQUIRIES: Chief Executive Financial Director Investor & Media RelationsDr Mark Bristow Roger Williams Kathy du Plessis+44 779 775 2288 +44 791 709 8939 +27 11 728 4701+44 788 071 1386 Cell: +27 83 266 5847 Fax: +27 11 728 2547* Email: [email protected] Website: www.randgoldresources.com The annual report has been mailed to shareholders and is now available forviewing or downloading from our website at www.randgoldresources.com. If youwish to receive by post a hard copy of the report or a CD containing the report,please e-mail or fax* your request to Kathy du Plessis [email protected] with your details. * see fax number above DISCLAIMER: Statements made in this document with respect to Randgold Resources'current plans, estimates, strategies and beliefs and other statements that arenot historical facts are forward-looking statements about the future performanceof Randgold Resources. These statements are based on management's assumptionsand beliefs in light of the information currently available to it. RandgoldResources cautions you that a number of important risks and uncertainties couldcause actual results to differ materially from those discussed in theforward-looking statements, and therefore you should not place undue reliance onthem. The 2005 annual report notes that the financial statements do not reflectany provisions or other adjustments that might arise from the claims and legalprocess initiated by Loulo against MDM. Other potential risks and uncertaintiesinclude risks associated with: fluctuations in the market price of gold, goldproduction at Morila, the development of Loulo and estimates of resources,reserves and mine life. For a discussion on such other risk factors refer to theannual report on Form 20-F for the year ended 31 December 2005 which was filedwith the United States Securities and Exchange Commission (the 'SEC') on 29 June2006. Randgold Resources assumes no obligation to update information in thisrelease. Cautionary note to US investors: the 'SEC' permits companies, in theirfilings with the 'SEC', to disclose only proven and probable ore reserves. Weuse certain terms in this release, such as "resources", that the 'SEC' does notrecognise 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:
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