Randgold Resources Ld
29 January 2001
For further details please contact:
CEO - Mark Bristow +27-82-800-4293(mobile)
Chairman - Roger Kebble +27-83-444-3030 (mobile)
SYAMA CEASES MINING OPERATIONS,OREBODY TO BE PRESERVED AS OPTION ASSET
St Helier, Jersey, 29 January 2001 - Randgold Resources announced today that
it had suspended mining operations at Syama in Mali pursuant to discussions
with the Malian government and other stakeholders about placing the gold mine
on care and maintenance to preserve the value of its orebody.
The company said the sustained low gold price had made the extraction of the
Syama orebody uneconomic. It had therefore decided to preserve the orebody
for the future rather than to continue current mining.
The estimated cost of the proposed care and maintenance programme is US$30
million, which will cover rehabilitation, obligations to employees and all
debt. Some 300 employees have already been retrenched during the past
quarter. The mine will continue to treat stockpiled ore as long as this
Chief executive Dr Mark Bristow said today the move to deal decisively with
the Syama situation would prevent the further erosion of Syama's value and
keep it as a profitable asset when the price of gold improves. It would also
free Randgold Resources to focus on its value-creation strategy and allow
management to concentrate on the steep part of the value curve.
'This enhances Randgold Resources' ranking as a distinctive gold business with
a substantial portfolio of low-cost ounces, which is not just viable but
vigorous at any foreseeable gold price level. We have a great operating asset
in Morila, a promising option asset in Syama, an integrated exploration
portfolio and a pipeline of solid projects,' Bristow said.
Issued on behalf of Randgold Resources Limited by du Plessis Associates. dPA
contact Kathy du Plessis on Tel +27 (11) 728 4701, mobile (0) 83-266-5847 or