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Randgold Resources (RRS)

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Tuesday 03 August, 1999

Randgold Resources

Quarterly Report

3 August 1999

For further information call Mark Bristow on +27 (0)11- 837-706 or cell +27
(0)82 800 4293.


London, 3 August  - The Morila gold mine in Mali is now scheduled to be in
full production in the last quarter of next year, ahead of the original
estimate of early 2001, Randgold Resources said today.

The Mali government has approved the project, the process design has been
finalised and site construction work has started.   It has been decided to
outsource the power supply to Rolls Royce Power Ventures.  Krupp Polysius has
been awarded the mill supply contract and the mining contract is expected to
be awarded during August 1999.

Morila has been designed for a minimum of 200 000 tons of ore per month to be
mined through opencast methods and processed through a gravity/CIL plant for
10 to eleven years.  The estimated life of mine working cost is US$133 per
ounce (US$155 including a government royalty).  Randgold Resources chief
executive Dr Mark Bristow said today the high quality and low cost of the
Morila operation made it commercially robust, even at the current gold price. 
 This had been confirmed by independent audits carried out on behalf of the
company as well as the bank consortium who are expected to fund the project,
he noted.

Elsewhere in Mali, during the quarter, at Randgold Resources= Syama mine
ounces produced were slightly up at 50 797 (March: 50 712), while tons mined
increased by 9% and ore tons mined by 34%.  Mill throughput was reduced by a
gearbox failure, and the use of lower-grade oxides to top up production
depressed the grade.  The gearbox problem has now been rectified and a
secondary crusher was commissioned in mid-July to improve mill throughput

With the capital programme at Syama largely complete, labour levels are being
scaled down to normal operational requirements.   A rightsizing exercise
agreed with the union is in progress.

On the exploration front, work continued on six priority targets at Syama, 
while at Morila 15 additional gold targets have been identified. In Mali West,
38 gold targets have been delineated, eleven of which are at an advanced
stage.   Exploration also continued on a number of permits in Cote d'Ivoire.  
Fieldwork has now been suspended with the advent of the rainy season and the
exploration teams are currently engaged in processing the information which
has been gathered and planning for the next field season.

Issued by du Plessis Associates - tel: +27 (0)11-728 4701 fax: +27
(0)11-724-2547; e-mail: - on behalf of Randgold Resources


Incorporated in Jersey, Channel Islands Reg. no. 62686



Randgold Resources has 33 million shares in issue as at 30 June 1999

                                  Unaudited                Audited
                              Quarter ended          Quarter ended
US $000                        30 June 1999          31 March 1999

Gold sales                           13 855                 14 528
Interest received                        20                     85
Exploration expenditure recovered        47                     54
Other income                          3 432                    740
                                     17 354                 15 407

Cost and expenses 
Production costs                     15 206                 15 231
Transport and refinery costs             81                     78
Transfer to deferred stripping       (1 033)               (2 271)

Cash operating costs                 14 254                 13 038
Royalties                               822                    863

Total cash costs                     15 076                 13 901
Profit before other charges           2 278                  1 506

Interest expense                        808                  1 138
Depreciation and amortisation         5 673                  5 685
Exploration expenditure               2 065                  1 948
Rehabilitation provision                 75                     75
Other expenses                          327                  1 077
Total costs                          24 024                 23 824

Loss on ordinary activities before 
taxes and minority interest         (6 670)                (8 417)
Income tax                             (97)                  (109)
Net loss on ordinary activities 
before minority interest            (6 767)                (8 526)
Minority shareholders' interest         728                    464
Net loss                            (6 039)                (8 062)

                                  Unaudited                Audited
                                      as at                  as at
US $000                        30 June 1999          31 March 1999

Cash                                  1 410                  3 751
Receivables                          18 308                 18 000
Inventories                          31 370                 32 514
Current assets                       51 088                 54 265
Property, plant and equipment - net 126 924                127 126
Other long-term assets               15 712                 14 739
                                    193 724                196 130

Accounts payable and accruals        27 718                 21 274
Long-term loans                      18 241                 20 741
Loans from outside shareholders in 
subsidiaries                         20 205                 19 791
Interest of outside shareholders in 
subsidiaries' losses               (14 062)               (13 338)
Shareholders' equity                141 622                147 662
                                    193 724                196 130


Included in other income is an amount of $3.4 million representing the
proceeds from a restructure of the Syama hedge. The first tranche of the IFC
loan amounting to $2.5 million was repaid in June.

Details of hedging financial instruments as at 30 June 1999 are:

                          Gold price forward       Gold price call
                                   contracts     options purchased
Maturity dates              Ounces     US $/oz    Ounces   US $/oz
July to December 1999       85 000         280       -          -
January to December 2000   135 000         302    54 000       325
January to December 2001   135 000         302    54 000       325
January to December 2002   135 000         302       -          -


A spot deferred position is being built up for the Morila Project ahead of
conclusion of project finance documentation.  As at 30 June, 200 000 ounces of
gold had been sold at an average price of US $262/oz.

                                  Unaudited                Audited
                              Quarter ended          Quarter ended
SYAMA                          30 June 1999          31 March 1999
Tons mined ('000s)                    3 876                  3 559
Ore tons mined ('000s)                  496                    371
Grade (g/t)                            3.85                   4.25

Tons processed ('000s)                  495                    501
Ore grade milled (g/t)                 3.84                   4.04
Recovery (%)                           79.9                   77.8
Ounces produced                      50 797                 50 712
Average price received (US$/ounce)      273                    286
Cash operating cost (US$/ounce)         280                    257
Cash (loss)/profit (US$'000)         (1 158)                   627


Ounces produced were in line with the previous quarter despite the loss of
throughput due to the wet sag mill gearbox failure.  This has now been
rectified. Grade was influenced by the addition of lower grade oxide ore to
partially compensate for lower mill availability.

Total tons mined increased by 9% and ore tons mined by 34%.

The secondary crusher was commissioned in mid-July which should lead to
further improvements in mill throughput.

With the expansion programme now largely completed, a phased right-sizing
exercise, which has been agreed with the union was started during June 1999. 
The exercise will be completed during the final quarter of 1999 and will
reduce manning levels as part of a continuing operational optimisation

Capital expenditure for the quarter amounted to US $3.4 million.



The project has been approved by the Mali Council of Ministers and the
exploitation decree is expected in the next few weeks.

Process design has been finalised and site construction work has commenced.
The bridge over the Koba River has been completed and the road upgrading work
is in progress.

Rolls-Royce Power Ventures has been awarded the power contract. The contract
is a 'Build, Own, Operate and Transfer' agreement based on a US c/kWh charge.

The mill supply was awarded to Krupp Polysius.

The mining contract will be awarded during August 1999.
Capital expenditure for the quarter amounted to US$3.5 million.  The planned
total capital expenditure (including working capital and financing costs) to
bring Morila into production is not expected to exceed US$85 million.

Full production at Morila is now scheduled for the last quarter of calendar

Independent audits conducted by Resource Service Group (for the company) and
SRK (on behalf of the consortium of banks) have confirmed the commercial
robustness of the Morila Development Project even at the current gold price.


Exploration continues along the 30km strike length of the Syama unit with
priority assigned to six target areas based on structural modelling. At A21,
gold mineralisation locates along a basalt-sediment contact and to date only
600 metres of the 1 200 metre known strike length of the Main Zone has been
drill tested.  South of Syama, the Basso target has indicated two sub-parallel
zones 10 - 20 metres apart grading 2.78 g/t over 9 metres for 220 metres and
1.92 g/t over 8 metres for 400 metres.  The zones are still open to the south
and at depth, and percussion drilling is in progress.

On the Morila permit, Mali, regional exploration has resulted in the
identification of over 15 additional gold targets in similar geological
settings to the Morila deposit.  Work will continue on these targets during
the next field season.

Exploration in Mali West (Selou, Medinandi and Loulo permits) has resulted in
the delineation of over 38 gold targets of which eleven are at an advanced
stage.  On the Loulo permit focussed work has confirmed a 2 000 metre,
north-south striking shear zone at Baboto, with widths of between 16 and 50
metres and a grade range of 1.5 to 3.0g/t.  

In the Yanfolila joint venture in Mali North expended approximately US$390 000
during the quarter and US$550 000 in total since the commencement of
exploration activities.  A second phase of diamond drilling (6 holes) was
completed at the Komana II prospect.  Results confirmed the tenor of
mineralisation outlined in the previous programme and reported on during the
last quarter.

Phase one regional exploration programmes have been completed over the
Boundiali and Tengrela permits (4 226km2) in Cote d'Ivoire outlining seven
follow-up targets.  On the Tengrela East permit soil sampling has highlighted
a broad, plus 50ppb gold anomaly covering a 1 000 metres by 1 200 metres area
which locates at the contact between a granodiorite intrusive and
metasediments and is referred to as the Zanikan target.

At Boundiali geological mapping has outlined a plus 90km north-east striking
shear zone locating on a basalt-metasediment contact and hosting numerous gold
targets.  All these targets will be subjected to follow-up programmes during
the forthcoming field season.

On the Nielle permit, Cote d'Ivoire, trenching and RAB drilling have extended
the two known mineralised zones at the Tongon Project and these now have a
cumulative strike length of 4.8km with widths of between 10 and 50 metres and
a grade range of 1.5 to 6g/t.

The current field season is now finished with the onset of the rains and the
exploration teams currently are engaged in the integration of information,
compilation of annual reports and planning of programmes for the next field


Corporate Restructuring

As announced in a cautionary notice published on 30 April 1999, a
restructuring proposal involving Randgold Resources and the companies in the
Consolidated African Mines Limited group is being examined.  A further
cautionary notice was published on 20 July 1999.

Year 2000

The company has completed its Year 2000 Compliance plan.  This included a full
inventory and testing of hardware, software, operating systems and embedded
systems, seeking assurance from all key business contacts and the development
of a contingency plan.  The company does not expect any material disruption of
business due to the Y2K problem, although it does recognise that it is still
vulnerable to third party suppliers whose systems may not be Y2K compliant.

Syama Underground

An underground preliminary feasibility study focussing on the orebody below
the current Syama pit has been completed in conjunction with consultants
Snowdens, demonstrating the potential to extend the current mine life.  It is
anticipated that this project will be incorporated in the long term strategy
of Syama.

Golden Ridge Project  -  Tanzania

$4.5 million representing proceeds of the sale of Golden Ridge to Barrick was
received in July. This sum is shown in receivables in the balance sheet.

On behalf of Randgold Resources Limited

R A R Kebble                              D M Bristow
Chairman                                  Managing Director

3 August 1999

Registered office: La Motte Chambers, La Motte Street, St Helier, Jersey JEI
IBJ, Channel Islands  Web-site:

Registrars: The Royal Bank of Scotland Trust Company (Jersey) Limited, Waverly
House, 59-63 Bath Street, St Helier, Jersey JE2 3NJ, Channel Islands

Transfer agents: Computershare Services plc, 7th Floor, Jupiter House, Triton
Court, 14 Finsbury Square, London EC2A IBR, UK

Investor Relations: For further information contact Kathy du Plessis at
Telephone (2711) 728-4701, Telefax (2711) 728-2547, e-mail: