leadf
logo-loader
viewRandgold Resources Limited

Randgold Resources tumbles on profits dip

Reported profits were 8% lower over the June quarter to US$58.7mln as production dropped 4% to 281,500oz.

picture of gold nuggets
Less gold, less profits at Randgold

Production problems at the Tongon and Kibali mines meant ‘one of the toughest quarters in years’ for Randgold Resources (LON:RSS).

Mark Bristow, chief executive of the Africa-based gold miner, reported profits were 8% lower over the June quarter to US$58.7mln as production dropped 4% to 281,500oz.

Costs rose 12% to $727/oz because of grade and ore feed issues at Kibali and a mill failure at Tongon, events that were only partly offset by the gold price rising to three year highs.

Bristow said the mill problem at Tongon was now fixed while a new satellite pit at Kibali should improve its feed flexibility and grades. 

He added that the development of DRC-based Kibali remained ahead of schedule, but added the company was ‘intensifying its focus on critical operational issues’ to ensure there is a substantial second-half improvement.

Profits for the half year to June rose to US$122.6mln (US$110.5mln) on revenues of US$700mln (US$699.4mln).

Shares that have soared this year on the back of the rising gold price tumbled 11% to 7,950p.

Quick facts: Randgold Resources Limited

Price: - -

LSE:RRS
Market: LSE
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Davide Bosio previews hotly anticipated IPOs for Miramar Resources and Zebit

Davide Bosio from Shaw and Partners says it's been a terrific start to the listing process for Miramar Resources, a junior West Australia exploration company. ''We opened up the offer and closed literally on the same day raising $8mln''. Bosio adds that Zebit is still on track to list on the ASX...

3 days, 2 hours ago

2 min read