Randgold shares have opened 4.5% down this morning, after operational difficulties led first quarter production to fall 11% versus Q415. However, higher gold prices relative to the previous quarter helped to boost profits by 19%, lifting earnings per share to $0.58 (Q415: $0.48).
On an annual basis profits rose 25%. An 8.5% fall in cash costs per ounce, to $648/oz, more than offset a slight fall in the average gold price to $1,187 (Q115: $1,215).
Guidance for the full year remains unchanged with production expected to be weighted towards the second half.
Loulo-Gounkoto Complex - Production of 172,554oz was down 6% on the quarter but up 34% on the year. Total cash costs reduced by 6% to $551/oz versus Q1 2015
Morila - Production fell 7% on the quarter to 16,191oz, following repairs to the mine's milling facilities. Total cash cost improved to $915/oz versus $1,060/oz in Q4
Tongon - Quarterly production was 54,122oz, 20% below the previous quarter. Output was impacted by an extended commissioning period and intermittent grid power interruptions, including a week-long power cut in March. Following the fall in production total cash costs rose 17% to $900/oz (Q415: $$771/oz)
Kibali - Planned changes to operating methods and a failure at the one of the mines two mill's meant that production dropped to 130,577oz in Q1, 15% below the previous quarter. This in turn led total cash costs to rise to $740/oz (Q415: $621/oz)
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