Randgold Resources (GOLD) profit up 13%
LONDON (SHARECAST) - Randgold Resources, the gold exploration group, announced much stronger profits as solid operations saw it dig even deeper.
The group announced first quarter gold sales revenue of $67.24m for the three months to March against $60.55m in the previous quarter and $31.98m a year earlier. Net profit for the period was $12 76m against $11.27m a year ago.
The miner said it saw an increase in production and cash costs during the period, due to the additional ounces from Loulo's first full quarter of production. The Loulo project progressed with Phase 2 completion and there appears to be potential for extensions as well as new deposits.
Randgold said it would initiate a return to Tongon and increases groundholding in Cote d'Ivoire, whilst noting that it is also set to drill in seven project areas in five countries.
“It is currently estimated that mining activities will cease (at Morila) during 2008 subject to no additional reserves being added to the mine plan, with processing of stockpiles continuing until 2013.”
“Over the period 2006-2008 it is expected that production will be in excess of 500 000 ounces per year,” added Randgold.
