2nd Apr 2008 08:58
Randgold Resources Ld02 April 2008 RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNasdaq Trading Symbol: GOLD RANDGOLD RESOURCES STRONGLY POSITIONED FOR FURTHER PROFITABLE GROWTH London, 2 April 2008 (LSE:RRS)(Nasdaq:GOLD) - Randgold Resources is soundlypositioned to do well under all realistically foreseeable cost/price scenarios,says chief executive Mark Bristow in the company's annual report for 2007,published today. Bristow notes that Randgold Resources has the capacity to grow its gold outputthrough exploration in a high gold price environment - with attributableproduction scheduled to reach 600 000 ounces per year by 2011 - at a time whenindustry output is declining. The company's Loulo complex in Mali, currently producing from two open-pitmines, is being expanded through the development of an underground mine atYalea, where the first mining faces are due to be established by mid-year. Asecond underground mine, Gara, is at the final planning stage. The company isalso in the early stages of developing a new mine at Tongon in the Coted'Ivoire. In addition, it has recently taken over operational responsibilityfor the Morila mine joint venture in Mali. "Certainly we're going to have to work very hard to contain the impact of costs,which we estimate will rise between 10% and 15% in 2008, depending on the oilprice and currency fluctuations. Even so, we are soundly positioned to do wellunder all realistically foreseeable scenarios. And our strategy remainsunchanged: we continue to build our business through discovery and development,while also hunting those rare external opportunities of real quality, with theobjective of creating long term value," Bristow says. Bristow noted that beyond the expansion of Loulo and the development of Tongon,Randgold Resources had a full and constantly replenished pipeline of qualityprojects, generated by its exploration programmes, which would provide a strongfoundation for further growth. The company has a robust balance sheet, he says, more than capable of fundingits growth projects as well as possible corporate transactions. This hasrecently been bolstered by a successful US$240 million equity placement. Also in the annual report, chairman Philippe Lietard says management aligned itsbusiness strategy with a scenario which anticipated a high gold price coupled torising production costs two years ago. "To meet this challenge, they stepped up the search for resource ounces andstrengthened the company's cost controls. New business initiatives wereintensified, the development of the Tongon project was accelerated, procurementpolicies were tightened and overhead expenses pruned," Lietard says. "These timely measures have equipped the company uniquely well to take fulladvantage of the opportunities and to manage the difficulties presented byexacting operating conditions." 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]: www.randgoldresources.com 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