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Randgold Resources - Strong year on year results

Nicholas Hyett | 4 May 2017 | A A A
Randgold Resources - Strong year on year results

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A 2.8% increase in the gold price, 18% increase in sales and 4% fall in total cash cost per ounce, helped Randgold deliver a 33% increase in first quarter profits versus the prior year.

Randgold shares rose 1.4% following the announcement.

First Quarter Results

First quarter gold production of 322,470 oz was up 10% on a year ago, although 15% below Q4's record output.

Lower ore grades at Gounkoto, Kibali and Tongon, and work stoppages at the large Loulo-Gounkoto and Tongon mines, meant that cash cost per ounce was $619, which although 4% below Q116 was 12.8% higher than in the immediately preceding quarter.

The average gold sales price in the quarter was $1,220/oz.

Randgold has seen good progress from both green and brown-field exploration teams during the quarter. There has been a particular increase in greenfield activity, with up to 18 rigs drilling in the company's portfolio of 134 targets across West Africa and the Democratic Republic of Congo.

Unless otherwise stated, all estimated figures, including prospective dividend yields, are taken from a consensus of analyst forecasts compiled by Thomson Reuters. These estimates should not be taken as a reliable indicator of future performance.

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.