Randgold Resources Ld
08 May 2006
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
RANDGOLD RESOURCES SUSTAINS FAST PACE IN ANOTHER HIGH-PERFORMANCE QUARTER
London, UK, 8 May 2006 (LSE:RRS)(Nasdaq:GOLD) - London and Nasdaq listed gold
miner Randgold Resources posted a solid net profit of US$13 million for the
March quarter on the back of an increase in profit from mining to US$33 million,
resulting from its new Loulo gold mine and a higher gold price.
Reporting its results today, the company said the second phase of the Loulo
plant - threatened with derailment by a defaulting contractor - was back on
track for completion towards the end of the second quarter. Meanwhile Loulo's
Phase 1 throughput, recoveries and costs before additional costs relating to
temporary crushing were in line with expectations, and production of 64 677
ounces in the mine's first full quarter of operation was on target.
Planning for the underground developments to complement Loulo's existing
open-pit operations progressed with the completion of the detailed design and
production scheduling of the Yalea underground section. A contractor will be
appointed next month and main decline development is due to start towards the
end of 2006, with the first stoping ore likely to be accessed by the end of
2007. The underground development plan for, the Loulo 0 section is receiving
its finishing touches as well.
The company's Morila joint venture also put in a good performance, with the
plant expansion reaching the designed throughput for the first time. This 11%
increase in throughput partially compensated for the expected grade decline and
production for the quarter was a satisfactory 135 779 ounces.
Chief executive Dr Mark Bristow said a particularly significant aspect of what
had generally been a challenging but good quarter was the increase to 56% in the
reserve-to-resource ratio at Loulo.
'While the discovery of new ounces is important, it's the conversion of these
resources to reserves that is really critical in creating value. We have been
very successful in converting the Yalea resources to reserves as a result of the
deep drilling programme and the completion of the detailed underground mine
plan,' he said. Exploration within the Loulo region continued to highlight the
potential for further extensions to the known orebodies as well as identifying
Reserve replacement was also achieved at Morila, where an infill and resource
extension drilling programme has produced an additional 510 000 ounces of
reserves and has increased the proportion of reserves in the higher-confidence
proven category from 50% to 70%. Bristow noted that much of the depletion of
the resource through mining in 2005 had been replaced by the year-end and said
the positive results from the Morila exploration initiative had confirmed the
company's belief in the further prospectivity of this area.
The prefeasibility-stage Tongon project in the Cote d'Ivoire, which has the
potential to become Randgold Resources' third mine, is being revived in
anticipation of that country's return to political stability following the
general elections scheduled for later this year. A Randgold Resources team has
moved onto site to finalise plans for a 10-borehole tactical drilling project
which will form the basis for planning the final feasibility drilling programme.
If the outcome to the elections is satisfactory, the company plans to complete
the final feasibility study within two years. In the meantime it has been
granted two new permits in the south of the country and has started early-stage
reconnaissance work there.
Maintaining its strong focus on exploration, Randgold Resources is set to drill
in seven project areas in five countries. In addition to the continuing hunt
for new ounces at and around Loulo and Morila, and the tactical programme at
Tongon, several additional targets have been lined up for drilling in Senegal
while a four-hole drilling programme has been completed at Kiabakari in
Tanzania. The company is also progressing early stage exploration programmes in
Burkina Faso and Ghana.
RANDGOLD RESOURCES ENQUIRIES:
Chief Executive Financial Director Investor & Media Relations
Dr Mark Bristow Roger Williams Kathy du Plessis
+44 779 775 2288 +44 791 709 8939 +27 11 728 4701
+27 82 800 4293 +27 83 308 9989 Fax: +27 11 728 2547*
+223 675 0122 +223 675 0109 Cell: +27 (0) 83 266 5847
DISCLAIMER: Statements made in this document with respect to Randgold Resources'
current plans, estimates, strategies and beliefs and other statements that are
not historical facts are forward-looking statements about the future performance
of Randgold Resources. These statements are based on management's assumptions
and beliefs in light of the information currently available to it. Randgold
Resources cautions you that a number of important risks and uncertainties could
cause actual results to differ materially from those discussed in the
forward-looking statements, and therefore you should not place undue reliance on
them. The 2005 annual report notes that the financial statements do not reflect
any provisions or other adjustments that might arise from the claims and legal
process initiated by Loulo against MDM and a purported counterclaim by MDM.
Other potential risks and uncertainties include risks associated with:
fluctuations in the market price of gold, gold production at Morila, the
development of Loulo and estimates of resources, reserves and mine life. For a
discussion on such other risk factors refer to the annual report on Form 20-F
for the year ended 31 December 2004 which was filed in amended form with the
United States Securities and Exchange Commission (the 'SEC') on 27 October 2005.
Randgold Resources assumes no obligation to update information in this release.
Cautionary note to US investors: the 'SEC' permits companies, in their filings
with the 'SEC', to disclose only proven and probable ore reserves. We use
certain terms in this release, such as 'resources', that the 'SEC' does not
recognise and strictly prohibits us from including in our filings with the '
SEC'. Investors are cautioned not to assume that all or any parts of our
resources will ever be converted into reserves which qualify as 'proven and
probable reserves' for the purposes of the SEC's Industry Guide number 7.
This information is provided by RNS
The company news service from the London Stock Exchange