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Randgold reports record production

Keith Bowman | 5 November 2015 | A A A
Randgold reports record production

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Randgold Resources increased production to a new record level in the third quarter of the year. This came on the back of a steady all-round operational performance and the stepping up of exploration programmes. Gold production for the quarter was 305,288 ounces, up more than 5,000 ounces compared to the second quarter. A further drop in the gold price depressed profits, which were $48.8 million against the previous quarter's $59.2 million.

The Chief executive, Mark Bristow, noted that "considering that the gold price had declined by 6% over this period to its lowest point since the first quarter of 2010, Randgold's profit performance continued to be creditable. The company remained debt-free, with net cash increasing significantly from $109 million to $168 million, further strengthening our balance sheet."

The group highlighted that the "intensified exploration drive was producing positive results across the board." Key developments to date have been from Sofia in Senegal, which have significantly enhanced the prospects of its Massawa project, the ongoing brownfields drilling at Gara and Yalea, the extension of resources and reserves around the Gounkoto and Tongon orebodies, and the group's improved understanding of the controls and styles of mineralisation across the Kibali permit.

The Chief Executive also noted that "The gold mining industry is severely stressed and Randgold is certainly not immune to the pressure. Relative to our peers, however, we are still doing well. We have a proven strategy against which we constantly test our businesses, and we are relentless in our drive to deliver on our plans." The share price fell by over 2% in mid-morning UK stock market trading.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research for more information.