16th Oct 2006 14:00
Randgold Resources Ld16 October 2006 RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNasdaq Trading Symbol: GOLD MALI GOLD INDUSTRY REQUIRES REINVESTMENT TO SECURE ITS FUTURE Bamako, Mali, 16 October 2006 (LSE:RRS)(Nasdaq:GOLD) - Mali's currentlyburgeoning gold mining industry requires reinvestment from the mining companiesas well as the Mali government if it is still to thrive in 10 years' time, saysRandgold Resources chief executive Mark Bristow. Speaking at an open day at the company's Morila joint venture, Bristow notedthat mining constantly needed to replenish the sources of the gold it producedand also had to expand its intellectual base to cope with the challengespresented by an increasingly complex business. "Randgold Resources believes the best way for the industry to create value forall stakeholders, including its host countries, is through discovery anddevelopment. It was our discovery of the Morila deposit that created a minethat since 2000 has produced more than four million ounces of gold, generatedtotal cash profits of more than US$900 million and contributed FCFA334 billion(US$636 million) to the Malian economy. While Morila is now entering the laststage of its life, it still has a number of profitable years ahead of it, and weare still exploring with some success around the fringes of the deposit andbeyond," Bristow said. "It was our belief in Mali's prospectivity, coupled with the productivepartnership we have forged with its government and people, that gave us theconfidence to reinvest substantially in this country. Last year, we opened anew mine at Loulo and tomorrow, the Minister of Mines, Energy and Water, HisExcellency Hamed D. Semega, will officially launch the development of anunderground mine to complement the two existing open-cast operations there.Loulo will eventually be four mines in one, and a true world-class gold project." Bristow noted that Randgold Resources was continuing to explore extensively atand around Morila and Loulo. "We are also committed to nurturing and empowering local management. Ourgeneral manager for Mali, our financial controller and the general manager atLoulo are all Malian nationals. In addition, we have taken the lead in suchinitiatives as the establishment of the KankouMoussa gold bank to provide aservice to artisanal producers and local jewellers," Bristow said. "During the last couple of years Randgold Resources directly reinvested morethan US$150 million in Mali. It's an investment we believe will not onlybenefit ourselves but also our partners, the government and people of Mali.While we are happy to show the way, we believe it is important for all concernedto understand that securing a sustainable future for Mali's gold industry willrequire a commensurate commitment from the other gold companies here, as well asfrom government." 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+223 675 0122 +223 675 0109 Cell: +27 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 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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