6th Feb 2006 08:16
Randgold Resources Ld06 February 2006 RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNasdaq Trading Symbol: GOLD RANDGOLD RESOURCES MORE THAN DOUBLES PROFIT AS SECOND MINE STARTS UP London, 6 February 2006 (LSE:RRS) (Nasdaq:GOLD) - London and Nasdaq listed goldminer Randgold Resources today reported a net profit of US$41 million for theyear to December, more than doubling its 2004 earnings of US$18.8 million, onthe back of a 54% increase in production and a buoyant gold price. The company's Morila joint venture produced 651 110 ounces of gold during theyear, outstripping its 2004 output by some 140 000 ounces, and its new Loulomine, which came into production in the last quarter of the year and shipped itsfirst bullion in November, contributed 67 984 ounces. Loulo - the second major gold mine Randgold Resources has discovered anddeveloped in Mali in the last five years - is scheduled to produce 250 000ounces in 2006 from open-pit operations but a complementary undergroundoperation, which will substantially extend the size, value and life of the mineis currently being developed. In the meantime continued exploration hasincreased the Loulo resource from 8.04 million ounces at the end of 2004 to ninemillion ounces despite depletion by mining. Chief executive Dr Mark Bristow said, despite the challenges created by thefailure of MDM, the Phase I build-up and operations had been well managed by theLoulo and Randgold Resources teams, with throughput, recovery and reagentutilisation all meeting forecast levels. "Commissioning of Phase Two - the hard-rock crushing circuit - has been delayedby the defaulting contractor but we are now managing the project directly andexpect to complete it during the second quarter. The mine has a plan to ensurethat sufficient ore feed is available to maintain steady production until then,"he said. "We're also pressing ahead with the underground development, for which we'vebudgeted US$20 million this year. Portal construction will start in the thirdquarter and should be completed by the year-end. Main decline development willstart in the last quarter of 2006 and we should have access to the firstdevelopment ore in 2007." Bristow noted that Randgold Resources had ended 2005 with the strongest balancesheet in its history. The equity exercise completed in November raised someUS$103 million after costs and with the revenue generated by Morila and Loulo,the company now has cash resources of US$150 million and is well-positioned tofinance not only the Loulo underground development but other growthopportunities. In pursuit of these opportunities, the company is maintaining an aggressiveexploration drive. In addition to an intensive hunt for more ounces around itsmain operational nodes at Morila and Loulo, it is currently evaluating 31targets in Senegal, working on its consolidated groundholding along the Markoyefault system in Burkina Faso, preparing to recommence exploration in Ghana, andabout to start reconnaissance drilling at Kiabakari in Tanzania. Randgold Resources also has a prefeasibility stage project at Tongon in the Coted'Ivoire which is on hold while efforts continue to stabilise the politicalsituation in that country. Bristow said a recent visit to the site had confirmedthat work there could be restarted quickly once conditions were right. 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 Cell: +27 (0) 83 266 5847 Email: [email protected] Website : www.randgoldresources.com 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 potential risks and uncertainties include, among others, risksassociated with: fluctuations in the market price of gold, gold production atMorila, the development of Loulo and estimates of resources, reserves and minelife. For a discussion on such risk factors refer to the annual report on Form20-F for the year ended 31 December 2004 which was filed in amended form withthe United States Securities and Exchange Commission (the 'SEC') on 27 October2005. 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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