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Randgold Resources (RRS)

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Thursday 02 November, 2006

Randgold Resources

3rd Quarter Results

Randgold Resources Ld
02 November 2006

RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD


REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2006

*  Profit from mining up by 90% for the nine months year on year
*  Production increases at Loulo by 11% but down by 8% at Morila
*  Underground drilling expands the resource base at Loulo to more than 10
   million ounces
*  Loulo underground mine development formally underway
*  Tongon drilling results support decision to proceed with feasibility
   programme
*  Exploration team gears up ahead of new field season
*  New opportunities beyond our current country portfolio to be evaluated

Randgold Resources Limited has 68.6 million shares in issue as at 30 September
2006

SUMMARISED FINANCIAL INFORMATION AND OPERATING RESULTS
                                                Quarter
                                                  ended
                            Quarter   Quarter   30 Sept
                              ended     ended      2005
                            30 Sept   30 June      (Re-
US$000                         2006      2006  stated)+
Gold sales revenue*          63 178    63 441    31 000
Total cash costs*            32 504    28 448    13 211+
Profit from mining activity* 30 674    34 993    17 789+
Profit from operations*      17 520    23 093     9 955+
Net profit                   12 746    14 573     9 949+
Net profit (as previously
reported)                       n/a       n/a     9 219+
Net profit attributable to
equity shareholders          12 285    13 754     9 949+
Net cash generated from
operations                   17 818    21 418     5 360
Bank and cash               155 320   151 531    45 022
Attributable production**
(ounces)                    107 002   105 388    69 160
Group total cash costs
per ounce** * (US$)             304       270       191+
Group cash operating
costs per ounce* (US$)          265       231       160+

SUMMARISED FINANCIAL INFORMATION AND OPERATING RESULTS
(continued)
                                               9 months
                                                  ended
                                    9 months    30 Sept
                                       ended       2005
                                     30 Sept       (Re-
US$000                                  2006   stated)+
Gold sales revenue*                  193 860     90 949
Total cash costs*                     94 415     38 556+
Profit from mining activity*          99 445     52 393+
Profit from operations*               61 740     28 450+
Net profit                            40 086     28 761+
Net profit (as previously reported)      n/a     28 461
Net profit attributable to
equity shareholders                   37 584     28 761+
Net cash generated from operations    61 765     16 251
Bank and cash                        155 320     45 022
Attributable production** (ounces)   331 379    202 024
Group total cash costs per
ounce** * (US$)                          285        191+
Group cash operating costs per
ounce* (US$)                             247        160+

*  Refer to explanation of non-GAAP measures provided.
**  Randgold Resources consolidates 40% of Morila and 100% of Loulo.
+  Restated due to change in accounting policy relating to deferred stripping.
See note on accounting policies.
n/a  Not applicable.

COMMENTS
*  The doubling of revenue compared to the corresponding period in 2005 reflects
the inclusion of the Loulo operation from November 2005 plus the impact of a
higher received gold price. Gold sales revenue for the quarter ended 30
September 2006 at US$63.2 million, was in line with the previous quarter despite
a less favourable received gold price. This was due to a 3 percent increase in
ounces of gold sold.
*  Costs are higher than the corresponding period in 2005 since this quarter
includes US$19.9 million from the inclusion of the Loulo operation which
commenced production in November 2005.  Total cash costs of US$32.5 million for
the quarter ended 30 September 2006 increased by US$4.1 million compared to the
previous quarter as a result of increased costs as explained under Operations.
The costs were in line with the first quarter of the year.
*  The increase in profit from mining activity of US$12.9 million over the
corresponding quarter in 2005, is attributable to the inclusion of US$11.2
million from Loulo plus the effect of higher received gold prices. The decrease
in the current quarter by US$4.3 million compared to the quarter ended 30 June
2006, is as a result of increased unit costs as well as a change in the mix of
production. More ounces were produced at the higher cost Loulo operation and
less ounces were produced at the lower cost Morila operation quarter on quarter.
*  When compared to the corresponding period in 2005, net profit from the
inclusion of the Loulo operation is offset by income tax at the Morila operation
and interest payments on the Loulo project loan. A decrease in net profit to
US$12.7 million, compared to the previous quarter, is as a result of the reduced
profit from mining as well as a US$2 million increase in the depreciation charge
for the quarter at Loulo.
*  The bank and cash balance increased by US$110.3 million compared to the
corresponding period in 2005 which reflects the cash generated by the operations
after capital investment and the equity of US$103 million raised in October 2005
and by US$3.8 million for the quarter ended 30 September 2006,when compared to
the previous quarter.


OPERATIONS
LOULO
Confusion caused by the name of Loulo being assigned to both a single pit as
well as the entire gold mine facility led to the decision to rename the Loulo 0
pit, the Gara pit. The name is sourced from the nearby Gara stream.

The throughput at Loulo was hampered by the delay in commissioning the hard rock
crusher. This resulted in the operation having to process transitional ore
during the rainy season which caused occasional blockages in the crushing
circuit. Higher grades and improved recoveries as mining shifted to the Gara
orebody in the latter part of the quarter, resulted in an increase in gold
produced.

Cash operating costs of US$317 per ounce after adjusting for the accounting
treatment for production inventories for the quarter ended 30 September 2006,
reflect an increase of US$40 per ounce over the previous quarter. This was
mainly due to increased waste prestripping in the current quarter as well as
additional costs incurred in hiring mobile crushers to handle the transitional
ore required because of the delay in commissioning the hard rock crusher. The
additional costs associated with the hire of mobile crushers are expected to
cease in October 2006.

Revenue increased by US$0.7 million compared to the quarter ended 30 June 2006,
mainly as a result of an increase in ounces sold, partly offset by a lower
achieved gold price of US$548 per ounce compared to US$577 per ounce. The
average gold price reported for the current quarter includes 22 752 ounces
delivered into the hedge at US$437.

The above impacted on the profit from mining activity which decreased by US$3.3
million compared to the previous quarter.

Production statistics:
LOULO RESULTS
                         Quarter    Quarter    Quarter
                           ended      ended      ended
                         30 Sept    30 June    30 Sept
                            2006       2006       2005
Mining
Tonnes mined (000)         4 830      3 934          -
Ore tonnes mined (000)       784        724          -
Milling
Tonnes processed (000)       588        630          -
Head grade milled (g/t)      3.2        2.8          -
Recovery (%)                95.2       91.9          -
Ounces produced           57 123     51 233          -
Average price
received + (US$/oz)          548        577          -
Cash operating costs*
(US$/oz)                     317        277          -
Total cash costs* (US$/oz)   350        313          -
Profit from mining
activity* (US$000)        11 125     14 416          -
Gold revenue (US$000)     31 110     30 445          -


LOULO RESULTS (continued)
                                    9 months  9 months
                                       ended     ended
                                     30 Sept   30 Sept
                                        2006      2005
Mining
Tonnes mined (000)                    12 805         -
Ore tonnes mined (000)                 1 887         -
Milling
Tonnes processed (000)                 1 940         -
Head grade milled (g/t)                  3.0         -
Recovery (%)                            93.3         -
Ounces produced                      173 033         -
Average price received + (US$/oz)        560         -
Cash operating costs* (US$/oz)           294         -
Total cash costs* (US$/oz)               329         -
Profit from mining activity* (US$000) 42 266         -
Gold revenue (US$000)                 99 173         -


Randgold Resources owns 80% of Loulo with the Government of Mali owning 20%.
Randgold Resources consolidates 100% of Loulo and then shows the minority
interest separately.
*  Refer to explanation of non-GAAP measures provided.
+  Includes the impact of 22 752 ounces delivered into the hedge at US$437 per
ounce.

Despite difficulties experienced with rain-induced stickiness of the ore,
secondary and tertiary crusher throughputs improved through the quarter.

Most areas still related to the original development project are in their final
completion stages, with no further critical areas outstanding. The completion of
the straddling conveyor on the stockpile, the permanent water pumping
installations at the Faleme river and Gara reservoir supply stations and the
mining fuel storage area will further improve and facilitate greater ease of
running the operation.

Loulo continues to evolve into a world class mining complex encompassing a broad
set of operations.

MORILA
Morila produced 124 698 ounces in the third quarter at a total cash cost of
US$251 per ounce, down from the 135 387 ounces produced in the previous quarter.
The lower production was a result of operational problems which resulted in a
lower head grade as well as lower plant throughput. A review team comprising
Randgold, Loulo and AngloGold Ashanti personnel spent time on site working with
Morila staff to identify the problems and institute corrective action.

Morila is still expected to produce in excess of 500 000 ounces for the year, in
line with earlier forecasts.

Exploration of both near pit targets as well as the regional drilling programme
continued during the quarter. Further resources have been committed to a
research programme aimed at developing an integrated structural and
mineralogical model to determine the genesis of the Morila orebody.

MORILA RESULTS (100%)
                         Quarter    Quarter    Quarter
                           ended      ended      ended
                         30 Sept    30 June    30 Sept
                            2006       2006       2005
Mining
Tonnes mined (000)         4 862      6 006      2 976
Ore tonnes mined (000)     1 261      1 591      1 194
Milling
Tonnes processed (000)     1 007        998      1 010
Head grade milled (g/t)      4.2        4.6        5.8
Recovery (%)                90.8       92.3       91.4
Ounces produced          124 698    135 387    172 901
Average price received
(US$/oz)                     622        628        443
Cash operating costs *
(US$/oz)                     206        187        160+
Total cash costs *
(US$/oz)                     251        229        191+
Profit from mining
activity (US$000)         48 872     51 443     44 473+
Attributable (40% pro-
proportionately consolidated)
Gold revenue
(US$000)                  32 068     32 996     31 000
Ounces produced           49 879     54 155     69 160
Profit from mining
activity (US$000)         19 549     20 577     17 789+

MORILA RESULTS (100%) (continued)
                                   9 months  9 months
                                      ended     ended
                                    30 Sept   30 Sept
                                       2006      2005
Mining
Tonnes mined (000)                   16 927    17 755
Ore tonnes mined (000)                4 331     4 807
Milling
Tonnes processed (000)                3 052     2 817
Head grade milled (g/t)                 4.4       6.1
Recovery (%)                           91.8      91.9
Ounces produced                     395 864   505 061
Average price received (US$/oz)         603       437
Cash operating costs * (US$/oz)         195       160+
Total cash costs * (US$/oz)             237       191+
Profit from mining activity (US$000)142 947   130 983+
Attributable (40% pro-
proportionately consolidated)
Gold revenue (US$000)                94 687    90 949
Ounces produced                     158 346   202 024
Profit from mining activity (US$000) 57 179    52 393+

*  Refer to explanation of non-GAAP measures provided.
+  Restated due to change in accounting policy related to deferred stripping.
See note on accounting policies.


PROJECTS AND EVALUATION
LOULO GOLD MINE: UNDERGROUND DEVELOPMENT
Yalea
Excavation and construction of the boxcut for the Yalea underground development
started during August 2006. The mining contractor, Shaft Sinkers arrived on site
to assist with the boxcut construction and the labour complement includes Malian
nationals, who are being trained to replace the expatriates.

The delivery schedule for the underground vehicle fleet ordered from JA Delmas
is on track with the first equipment already on site. To date two R1300G
Loaders, two Multi Task Loaders and an Atlas Copco Rocket Boomer drill rig have
been delivered to site. Further deliveries including the CAT AD30 dump trucks
are expected and commissioning of the equipment should take place during
November 2006.

Gara
During this quarter conceptual mine re-design has been completed for the Gara
underground mine, based on an increased resource base. Scheduling of this
underground design and optimisation with the current open pit plan is currently
underway.

Eleven diamond drill holes were completed on the deep drilling of the Gara
deposit for a total of 6 940 metres this quarter. Results confirmed the presence
of good grades at depth in the central portion of the orebody. The new results
were used to remodel the geological and resource models, resulting in an
increase of the total resource to 25 million tonnes at 4.11g/t for 3.3 million
ounces. The updated resource is tabled below and reflects an 800 000 ounce
increase from the previous declaration. The block model indicates a broad south
westerly plunge to the high-grade mineralisation which is coincident with the
plunge angle and direction of fold lineations measured in the pit. Further
drilling is underway to infill some gap areas within the deep drilling as well
as to test the grade trend of the central high-grade portion of the deposit to
600 metres below surface.

DIAMOND DRILLING - MINERALISED INTERSECTIONS AT THE GARA DEPOSIT (formerly Loulo 0)
                         Ore Intersection
                                   Width     Grade
Hole Id         From        To       (m)     (g/t)
L0CP95        582.10    595.05     12.95      0.68
L0CP97        361.25    382.75     21.50      7.15
L0CP102       643.86    645.38      1.52     12.09
L0CP109       707.32    711.98      4.66      5.40
L0CP86        221.70    223.50      1.80      4.18
L0CP92        333.35    338.10      4.75      0.11
L0CP93        317.10    335.48     18.38      0.65
L0CP105       483.25    490.53      7.28      2.67
L0CP108       715.05    722.00      6.95      0.92
L0CP96        590.40    594.10      3.70      0.97
L0CP98        324.80    333.00      8.20      3.36
L0CP99        356.00    364.60      8.60      1.95
L0CP101       476.00    478.23      2.23      2.27
L0CP103       558.70    564.45      5.75      9.66
L0CP103       579.00    604.37     25.37      1.33
L0CP103       673.90    682.40      8.50      1.82
L0CP105       483.25    490.53      7.28      2.67
L0CP106       767.05    774.80      7.75      0.85
L0CP108       715.05    722.00      6.95      0.92
L0CP110       678.82    682.60      3.78      2.58
L0CP110       705.15    713.40      8.25      0.34
L0CP111       712.35    720.95      8.60      4.23
L0CP107       734.90    748.20     13.30      5.07


DIAMOND DRILLING - MINERALISED INTERSECTIONS AT THE GARA DEPOSIT (formerly Loulo 0) (continued)
                             Including
                                   Width     Grade
Hole Id         From        To       (m)     (g/t)
L0CP95
L0CP97        375.82    382.75      6.93     13.95
L0CP102
L0CP109
L0CP86
L0CP92
L0CP93
L0CP105
L0CP108
L0CP96
L0CP98        325.90    328.30      2.40      4.63
L0CP99
L0CP101
L0CP103
L0CP103       599.80    603.17      3.37      4.99
L0CP103
L0CP105       485.10    490.5      35.43      3.40
L0CP106
L0CP108
L0CP110
L0CP110
L0CP111       719.90    720.95      1.05     20.70
L0CP107       735.73    741.17      5.44      9.50


UPDATED RESOURCE ESTIMATE AT THE GARA DEPOSIT (formerly Loulo 0)
                   Tonnes        Grade        Ounces
                    (Mt)         (g/t)         (Moz)
                  Dec   Aug    Dec    Aug    Dec   Aug
Classification   2005  2006   2005   2006   2005  2006
Measured          9.4   9.7   3.84   3.91   1.20   1.2
Indicated         9.6  14.4   4.29   4.19   1.30   1.9
Measured and
indicated        18.9  24.1   4.07   4.08   2.50   3.2
Inferred          0.3   0.9   6.28   4.83   0.06   0.1
Total            19.3  25.0   4.10   4.11   2.50   3.3

Tongon Project
As discussed later in the exploration section a successful drilling programme
was carried out at Tongon and the results from this are being used to plan the
feasibility drilling programme. Dependent on the local political situation, this
30 000 metre programme will commence in January 2007.

EXPLORATION ACTIVITIES
In West Africa, the third quarter of the year traditionally sees a drop in
exploration activity due to difficulty of access caused by heavy rains. The
previous season's programmes were wrapped up and efforts focused on reporting
and interpretation. Conversely in East Africa field activities were accelerated
during the dry season, with drilling completed at Kiabakari.

In the Cote d'Ivoire, we successfully completed an 8 hole, 1 992 metre tactical
diamond coring programme at the Tongon prospect, situated within the Nielle
permit, in the north of the country.

Five holes were completed to further test a 1.5 kilometre segment of the main
Northern Zone shear zone, which trends 250degrees to 260degrees and dips 80
degrees to 70degrees northwest. It is represented by wide zones of pervasively
foliated and altered mafic volcaniclastics.  The mineralisation locates on the
immediate hanging wall of the main graphitic shear.  The mineralised zone is
associated with increased silicification, sulphidation and fine brecciation; the
results are presented below from west to east.

*  TND054: 10 metres at 3.70g/t (from 149 metres)
*  TND053: 3 metres at 8.03g/t (from 144 metres) and 31 metres at 2.99g/t (from
157 metres)
*  TND051: 9 metres at 1.55g/t (from 38 metres) and 10 metres at 2.40g/t (from
124 metres)
*  TND055: (No significant results)
*  TND050: 1 metre at 12.70g/t (from 146 metres) and 13 metres at 1.25g/t (from
154 metres)

Three holes were completed in the Southern Zone to provide a framework for the
future feasibility drilling. This zone is more geologically complex, with
multiple mineralised zones trending 40degrees to 50degrees with variable dips
from 60degrees to 70degrees northwest. The ore zones are hosted within quartz
and shear bounded, brecciated volcaniclastics and appear lensoid in shape; their
strike and depth continuity are variable. The silicate alteration is complicated
with biotite, silica, sericite, tremolite, diopside and calcite; the results are
presented below.

*  TND052: 6 metres at 1.04g/t (from 116 metres), 44 metres at 1.68g/t (from 185
metres) including 5 metres at 5.06g/t, 6 metres at 3.60g/t and 7 metres at 2.9g/t
and a deeper intersect of 10 metres at 3.95g/t (from 342 metres)
*  TND056: 4 metres at 1.77g/t (from 143 metres) and 9 metres at 2.29g/t (from
194 metres)
*  TND057: 3 metres at 1.18g/t (from 46 metres) and 4 metres at 1.07g/t (from 84
metres)

Plans are now underway to gear up for the start of the feasibility drilling (30
000 metres diamond core) in January 2007, pending safe working conditions and a
stabilised political situation.

At Loulo, new information from the mining of the Gara deposit and relogging of
the diamond core has now enabled the development of a three dimensional
geological model. The model reveals high-grade mineralisation is associated with
the 30/40degrees trending axial planes of quartz tourmaline folds and is
concentrated in the hinge zone of a large overturned antiform. The previous
drilling at Gara South only tested the eastern limb of a synform and did not
test the blind antiformal closure; this will be the target of drilling in the
fourth quarter.

At Faraba, 13 out of a planned 36 RC holes were completed for a total of 804
metres. The most significant intersections from FARC044 (21 metres at 1.35g/t
including 8 metres at 2.88g/t), FARC062 (9 metres at 2.77g/t), FARC065 (32
metres at 1.64g/t including 10 metres at 2.91g/t) and FARC066 (14 metres at
3.70g/t) are hosted in strongly oxidised to gossanous saprolite. To date,
trenching and drilling have identified two pods of mineralisation within the 2.6
kilometre Faraba main shear; a northern zone of 500 metres and a main zone of 1
kilometre. Drilling programmes, both RC and diamond core, are planned for
Faraba, P64 and Baboto South during the final quarter of 2006.

At Morila, drilling continued as part of the 40 000 metre regional drilling
programme, although failing to intersect further high grades, the results
continue to define the low-grade footprint.

In South Mali, Randgold has been exploring on its permits immediately adjacent
to its Morila mine for several years. The techniques used to date have been
successful in locating mineralised structures such as Ntiola and Kona. However,
so far no economic mineralisation resembling the Morila deposit has been
located. A 3 000 metre diamond drilling programme was completed before the wet
season and has highlighted areas with geological, structural and metamorphic
similarities to the Morila enclave. To complement the data from this drilling
programme, a ground gravity survey across the Morila area permits will be
carried out in the final quarter of the year.

In Senegal, we are currently prioritising 15 targets for RAB drilling and
modelling the advanced targets of Bambaraya, Sofia and Delya for further diamond
drilling.

In Ghana, we have almost completed the first phase of exploration across all our
permits which have already started to reveal a number of targets, for field
validation and follow-up programmes.

In Burkina Faso, a 549 hole 9 040 metre RAB programme was completed, testing
three targets within the Kiaka permit. A 1 125 metre, 11 hole RC drilling
programme was also completed, testing the Kiaka target, which defined broad
zones of low-grade mineralisation over a 3 kilometre strike length. In addition,
first pass regional exploration has been completed over the complete portfolio
of nine permits.

In Tanzania, recent drilling at Kiabakari has not so far identified a large
mineralised system meeting Randgold's investment criteria and the project status
is currently being re-evaluated. However a number of new opportunities and ideas
are being followed-up to further develop the Tanzanian business.


CONSOLIDATED INCOME STATEMENT
                                              Quarter
                                                ended
                        Quarter    Quarter    30 Sept
                          ended      ended       2005
                        30 Sept    30 June   (Restat-
US$000                     2006       2006       ed)+
REVENUES
Gold sales on spot       67 205     66 684     31 000
Realised loss on
closing out of hedges    (4 027)    (3 243)         -
Non-cash realised
profit/(loss) on roll
forward of hedges           577     (2 050)         -
Total                    63 755     61 391     31 000
OTHER INCOME
Interest income           1 889      1 754        308
Exchange gains              169      1 552        179
Other income                550        164        159
Total other income        2 608      3 470        646
Total revenue            66 363     64 861     31 646
COSTS AND EXPENSES
Mine production costs    29 673     29 066     11 608
Movement in production
inventory and ore
stockpiles               (3 528)    (7 697)    (2 258)+
Transfer from/(to)
deferred stripping            -          -          -+
Depreciation and
amortisation              6 386      4 962      2 275
General and admin-
istration expenses        2 079      2 824      1 635
Mining and processing
costs                    34 610     29 155     13 260+
Transport and refinery
costs                       179        126         68
Royalties                 4 101      4 129      2 158
Exploration and corporate
expenditure               6 768      6 938      5 559
Other losses/(gains) -
net                         323          -        (54)
Exchange losses             465      1 406        370
Unwind of discount on
provisions for rehab-
ilitation                    84         84        117
Interest expense          1 531      1 537        219
Profit before income tax 18 302     21 486      9 949+
Income tax expense       (5 556)    (6 913)         -
Net profit               12 746     14 573      9 949+
Attributable to:
Equity shareholders      12 285     13 754      9 949
Minority Shareholders       461        819          -
                         12 746     14 573      9 949+
Basic earnings per
share (US$)                0.18       0.20       0.17+
Fully diluted earnings
per share (US$)            0.18       0.20       0.16+
Average shares in
issue (000)              68 474     68 266     59 723


CONSOLIDATED INCOME STATEMENT (continued)
                                             9 months
                                                ended
                                  9 months    30 Sept
                                     ended       2005
                                   30 Sept   (Restat-
US$000                                2006       ed)+
REVENUES
Gold sales on spot                 201 130     90 949
Realised loss on closing out
of hedges                           (7 270)         -
Non-cash realised profit/(loss)
on roll forward of hedges           (4 700)         -
Total                              189 160     90 949
OTHER INCOME
Interest income                      5 692        997
Exchange gains                       3 777        544
Other income                           730      1 761
Total other income                  10 199      3 302
Total revenue                      199 359     94 251
COSTS AND EXPENSES
Mine production costs               86 150     40 142
Movement in production inventory
and ore stockpiles                 (12 521)   (12 776)
Transfer from/(to) deferred
stripping                                -          -+
Depreciation and amortisation       16 312      7 177
General and administration expenses  7 777      4 714
Mining and processing costs         97 718     39 257
Transport and refinery costs           458        197
Royalties                           12 551      6 279
Exploration and corporate
expenditure                         21 393     16 766
Other losses/(gains) - net             323        (54)
Ex change losses                     3 767      1 830
Unwind of discount on provisions
for rehabilitation                     252        351
Interest expense                     4 687        864
Profit before income tax            58 210     28 761+
Income tax expense                 (18 124)         -
Net profit                          40 086     28 761+
Attributable to:
Equity shareholders                 37 584     28 761+
Minority shareholders                2 502          -
                                    40 086     28 761+
Basic earnings per share (US$)        0.55       0.48+
Fully diluted earnings per
share (US$)                           0.54       0.47+
Average shares in issue (000)       68 291     59 578

The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
+  Restated due to change in accounting policy relating to deferred stripping.
See note on accounting policies.


CONSOLIDATED BALANCE SHEET
                                        At         At
                                    31 Dec    30 Sept
                             At       2005       2005
                        30 Sept   (Restat-   (Restat-
US$000                     2006       ed)+       ed)+
Assets
Non-current assets
Property, plant and
equipment               237 168    202 636    188 392
Cost                    287 175    236 331    217 354
Accumulated
depreciation and
amortisation            (50 007)   (33 695)   (28 962)
Deferred stripping costs      -          -+         -+
Deferred taxation         2 696      2 957+         -
Long-term ore stockpiles 29 522     22 176+    22 599+
Total non-current
assets                  269 386    227 769+   210 991+
Current assets
Deferred stripping costs      -          -+         -+
Inventories and
stockpiles               40 473     34 210+    10 340
Receivables              52 169     47 918     50 491
Cash and cash
equivalents             155 320    152 452     45 022
Total current assets    247 962    234 580+   105 853+
Total assets            517 348    462 349+   316 844+
Shareholders' equity    328 911    301 822+   197 557+
Minority interest         3 897      1 395       (954)
Total equity            332 808    303 217+   196 603+
Non-current liabilities
Long-term borrowings     36 777     49 538     58 848
Loans from minority
shareholders in
subsidiaries              2 663      2 483      2 448
Financial liabilities
- forward gold sales     40 128     34 151     22 796
Provision for
rehabilitation            9 751      9 480      8 997
Total non-current
liabilities              89 319     95 652     93 089
Current liabilities
Financial liabilities
- forward gold sales     22 982      8 939      3 683
Current portion of
long-term borrowings     24 730     22 991     10 716
Accounts payable
and accrued liabilities  42 575     28 813     12 753
Taxation payable          4 934      2 737          -
Total current liabilities95 221     63 480     27 152
Total equity and
liabilities             517 348    462 349+   316 844+


+   Restated due to change in accounting policy relating to deferred stripping.
See note on accounting policies.

Main balance sheet movements for the nine months ended 30 September 2006 were as
follows:
*  The increase in property, plant and equipment for the 9 months ended
September 2006 mainly reflects the expenditure to complete Phase 2 of the Loulo
plant as well as the commencement of construction and purchase of equipment for
the Loulo underground mine at Yalea.
*  Inventories and stockpiles increased due to an increase in ore stockpiles at
Morila in line with the life of mine plan as well as the planned build up of
warehouse inventories at Loulo.
*   The increase in receivables is mainly a result of the timing of gold
shipments at the end of the current quarter. Furthermore, the company has
instituted a Section 417 Companies Act enquiry into the financial dealing of MDM
Ferroman (Pty) Limited in liquidation and its associated companies as the first
step in recovering outstanding debts. The forensic audit is currently underway
with the hearing scheduled for November 2006.
*  Cash and cash equivalents increased in line with the cash generated by
operations offset by funds expended on property, plant and equipment.
*  The decrease in long-term borrowings reflects the first repayment of US$8.4
million on the Loulo project loan in June 2006 plus scheduled repayments on the
CAT finance lease at Loulo and the attributable portion of the Morila power
plant finance lease.
*   The increase in financial liabilities of forward gold sales is due to an
increase in the negative marked-to-market valuation of contracts held at 30
September 2006. The gold price was US$599.25 at 30 September 2006.
*  Accounts payable and accrued liabilities increased in line with the
procurement of equipment for the Loulo underground project.
*  The increase in taxation payable is in line with the end of the tax
exoneration period at Morila in November 2005.


CONSOLIDATED CASHFLOW STATEMENT
                                              9 months
                                                 ended
                                   9 months    30 Sept
                                      ended       2005
                                    30 Sept   (Restat-
US$000                                 2006       ed)+
Profit before income tax             58 210     28 761+
Adjustment for non-cash items        23 425     14 129+
Working capital changes             (19 870)   (26 639)
Net cash generated from operations   61 765     16 251
Additions to property, plant and
equipment                           (50 844)   (60 798)
Financing of contractors                105    (17 930)
Net cash utilised in investing
activities                          (50 739)   (78 728)
Ordinary shares issued                2 685      1 696
(Decrease)/increase in
long-term borrowings                (10 843)    27 563
Net cash generated by financing
activities                           (8 158)    29 259
Net increase/(decrease) in cash
and cash equivalents                  2 868    (33 218)
Cash and cash equivalents at
beginning of period                 152 452     78 240
Cash and cash equivalents at
end of period                       155 320     45 022


+  Restated due to change in accounting policy relating to deferred stripping.
See note on accounting policies.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                     Number
                         of    Share    Share
                      ordin-   capit-    pre-     Other
                         ary      al     mium  reserves
                      shares  US$000   US$000    US$000
Balance - 31 Dec 2005
(as previously
reported)         68 072 864   3 404  208 582   (41 000)
Change in
accounting policy
- deferred
stripping cost             -       -        -         -
Balance -
31 Dec 2005       68 072 864   3 404  208 582   (41 000)
Net income                 -       -        -         -
Movement on cash
flow hedges
- Realised
(non cash)                 -       -        -     5 023
- Unrealised               -       -        -   (20 020)
Total recognised
(loss)/income              -       -        -   (14 997)
Share-based payments       -       -        -     1 817
Share options
exercised            486 867      24    2 661         -
Exercise of options
previously expensed
under IFRS 2               -       -      502      (502)
Shares vested#         6 830       -      108      (108)
Balance -
30 Sept 2006      68 566 561   3 428  211 853   (54 790)



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)

                               Total
                              attri-
                             butable
                     Accu-        to
                   mulated    equity  Minority    Total
                   Profits    share-  interest   equity
                    US$000   holders    US$000   US$000
Balance - 31 Dec 2005
(as previously
reported)          138 751   309 737     1 395  311 132
Change in accounting
policy - deferred
stripping cost      (7 915)+  (7 915)+       -   (7 915)+
Balance -
1 Dec 2005         130 836+  301 822+    1 395  303 217+
Net income          37 584    37 584     2 502   40 086
Movement on cash
low hedges
- Realised (non cash)    -     5 023         -    5 023
- Unrealised             -   (20 020)        -  (20 020)
Total recognised
(loss)/income       37 854    22 587     2 502   25 089
Share-based payments     -     1 817         -    1 817
Share options
exercised                -     2 685         -    2 685
Exercise of options
previously expensed
under IFRS 2             -         -         -        -
Shares vested#           -         -         -        -
Balance -
30 Sept 2006       168 420   328 911     3 897  332 808


#   Restricted shares were issued to directors as remuneration. The transfer
between 'other reserves' and 'share premium' in respect of the shares vested
represents the cost calculated in accordance with IFRS 2.
+  Restated due to change in accounting policy relating to deferred stripping.
See note on accounting policies.


NON-GAAP MEASURES
Total cash costs and cash cost per ounce are non-GAAP measures. Total cash costs
and total cash costs per ounce are calculated using guidance issued by the Gold
Institute. The Gold Institute was a non profit industry association comprised of
leading gold producers, refiners, bullion suppliers and manufacturers. This
institute has now been incorporated into the National Mining Association. The
guidance was first issued in 1996 and revised in November 1999. Total cash
costs, as defined in the Gold Institute's guidance, include mine production,
transport and refinery costs, general and administrative costs, movement in
production inventories and ore stockpiles, transfers to and from deferred
stripping where relevant, and royalties. Under the company's revised accounting
policies, there are no transfers to and from deferred stripping.

Total cash costs per ounce are calculated by dividing total cash costs, as
determined using the Gold Institute guidance, by gold ounces produced for the
periods presented. Total cash costs and total cash costs per ounce are
calculated on a consistent basis for the periods presented. Total cash costs and
total cash costs per ounce should not be considered by investors as an
alternative to operating profit or net profit attributable to shareholders, as
an alternative to other IFRS or US GAAP measures or an indicator of our
performance. The data does not have a meaning prescribed by IFRS or US GAAP and
therefore amounts presented may not be comparable to data presented by gold
producers who do not follow the guidance provided by the Gold Institute. In
particular depreciation, amortisation and share-based payments would be included
in a measure of total costs of producing gold under IFRS and US GAAP, but are
not included in total cash costs under the guidance provided by the Gold
Institute. Furthermore, while the Gold Institute has provided a definition for
the calculation of total cash costs and total cash costs per ounce, the
calculation of these numbers may vary from company to company and may not be
comparable to other similarly titled measures of other companies. However,
Randgold Resources believes that total cash costs per ounce are useful
indicators to investors and management of a mining company's performance as it
provides an indication of a company's profitability and efficiency, the trends
in cash costs as the company's operations mature, and a benchmark of performance
to allow for comparison against other companies.

Cash operating costs and cash operating cost per ounce are calculated by
deducting royalties from total cash costs. Cash operating costs per ounce are
calculated by dividing cash operating costs by gold ounces produced for the
periods presented.

Profit from mining activity is calculated by subtracting total cash costs from
gold sales revenue for all periods presented.

Profit from operations is calculated by subtracting depreciation and
amortisation charges and exploration and corporate expenditure, as well as
share-based payment from profit from mining activity.

The following table reconciles total cash costs, profit from mining activity and
profit from operations as non-GAAP measures, to the information provided in the
income statement, determined in accordance with IFRS, for each of the periods
set out below:
                                              Quarter
                                                ended
                          Quarter   Quarter   30 Sept
                            ended     ended      2005
                          30 Sept   30 June  (Restat-
US$000                       2006      2006      ed)+
Gold sales on spot         67 205    66 684    31 000
Realised loss on closing
out of hedges              (4 027)   (3 243)        -
Gold sales revenue         63 178    63 441    31 000
Mine production costs      29 673    29 066    11 608
Movement in production
inventory and ore
stockpiles                 (3 528)   (7 697)   (2 258)+
Transfer from deferred
stripping                       -         -         -
Transport and refinery
costs                         179       126        68
Royalties                   4 101     4 129     2 158
General and administration
expenses                    2 079     2 824     1 635
Total cash costs           32 504    28 448    13 211+
Profit from mining
activity                   30 674    34 993    17 789+
Depreciation and
amortisation                6 386     4 962     2 275
Exploration and
corporate expenditure       6 768     6 938     5 559
Profit from 0perations     17 520    23 093     9 955+

(continued)
                                              9 months
                                                 ended
                                    9 months   30 Sept
                                       ended      2005
                                     30 Sept  (Restat-
US$000                                  2006      ed)+
Gold sales on spot                   201 130    90 949
Realised loss on closing out of
hedges                                (7 270)        -
Gold sales revenue                   193 860    90 949
Mine production costs                 86 150    40 142
Movement in production inventory
and ore stockpiles                   (12 521)  (12 776)+
Transfer from deferred stripping           -         -+
Transport and refinery costs             458       197
Royalties                             12 551     6 279
General and administration expenses    7 777     4 714
Total cash costs                      94 415    38 556+
Profit from mining activity           99 445    52 393+
Depreciation and amortisation         16 312     7 177
Exploration and corporate expenditure 21 393    16 766
Profit from operations                61 740    28 450

+  Restated due to change in accounting policy relating to deferred stripping.
See note on accounting policies.

ACCOUNTING POLICIES

The financial information in this report has been prepared in accordance with
the group's accounting policies, which comply with IFRS and are consistent with
the prior period, except as noted below.

Joint ventures are those investments in which the group has joint control and
are accounted for under the proportional consolidation method. Under this
method, the proportion of assets, liabilities, income and expenses and cash
flows of each joint venture attributable to the group are incorporated in the
consolidated financial statements under appropriate headings. Inter-company
accounts and transactions are eliminated on consolidation.

The directors have changed the group's accounting policy on deferred stripping
costs, under both IFRS and US GAAP in the current period. Previously, costs of
production stage waste stripping in excess of the expected pit life average
stripping ratio were deferred and then charged to production when the actual
stripping ratio was below the expected pit life average stripping ratio. Under
the revised accounting policy, all stripping costs incurred during the
production phase of a mine are treated as variable production costs and as a
result are included in the cost of the inventory produced during the period that
the stripping costs are incurred.

Under US GAAP, EITF 04-06 'Accounting for Stripping Costs Incurred during
Production in the Mining Industry' is effective for reporting periods beginning
after 15 December 2005. The consensus does not permit the deferral of any waste
stripping costs during the production phase of a mine, but requires instead that
they should be treated as variable production costs. The directors have decided
to adopt the same treatment under IFRS which will ensure that the accounting
policies applied under IFRS and US GAAP remain in line. With regard to the
conclusions reached by the EITF, the directors believe the revised policy will
mean that the financial statements provide reliable and more relevant
information about the group's financial position and its financial performance.
In accordance with the requirements of IAS 8 'Accounting Policies, Changes in
Accounting Estimates and Errors', the change in the IFRS policy has been applied
retrospectively and hence the 2004 comparatives have been restated.

The change in the IFRS accounting policy has resulted in the following
adjustments to the amounts reported under IFRS:

                           30 Sept    31 Dec   30 Sept
US$000                        2006      2005      2005
Decrease in deferred
stripping costs                  -     3 687     9 637
Decrease in ore stockpiles   9 150     8 342     5 244
Decrease/(increase) in
gold in process                (11)       51      (297)
Decrease in deferred
taxation liability               -     1 227         -
(Decrease)/increase in
deferred taxation asset        311     2 938         -
Decrease in opening
retained earnings                -    14 884    15 314

                        Quarter   Quarter      Quarter
                          ended     ended        ended
                        30 Sept   30 June      30 Sept
US$000                     2006      2006         2005
Increase/(decrease) in
net profit                  580     1 405          730
Increase/(decrease) in
basic earnings per share
(cents per share)             1        2             2
Increase in fully diluted
earnings per share
(cents per share)             1        2             1


(continued)
                                  9 months    9 months
                                     ended       ended
                                   30 Sept     30 Sept
US$000                                2006        2005
Increase/(decrease) in net profit    3 019         300
Increase/(decrease) in basic
earnings per share (cents per share)     5           -
Increase in fully diluted earnings
per share (cents per share)              4           1


FORWARD COMMODITY CONTRACTS

The group's hedging position which all relates to the Loulo project financing,
was as follows at 30 September 2006:
                                                Forward
                                       Forward    sales
                                         Sales  average
Maturity date                           ounces   US$/oz
Year ended 2006                         37 737      434
Year ended 2007                        122 003      438
Year ended 2008                         80 496      431
Year ended 2009                         84 996      437
Total                                  325 232      435


The remaining portion of the hedge book represents approximately 34% of planned
open pit production at Loulo for the period that the project finance is in place
and 22% of the group's attributable production. In the current gold price
environment, it is the company's intention to take advantage of current spot
prices and roll out longer dated forward sales contracts at the appropriate
times.

Morila's production is completely exposed to spot gold prices.

During the quarter, the company delivered into 22 752 ounces of its hedge book
at an average price of US$437 per ounce.

GENERAL
The company continues to evaluate various opportunities both at the corporate
and project level. We are focused on value creation through exploration,
discovery and development, as well as strategic leverage in merger and
acquisition opportunities.

D M Bristow                           R A Williams
Chief executive                 Financial director
2 November 2006

This report is available in .pdf format on the companies website at :
www.randgoldresources.com or email your request to :
randgoldresources@dpapr.com.

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INVESTOR AND MEDIA RELATIONS:  For further information contact Kathy du Plessis
on Tel +27 (11) 728-4701, Mobile +27 83 266 5847, Fax +27 (11) 728-2547
E-MAIL:  randgoldresources@dpapr.com

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. 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 2005 which was filed
with the United States Securities and Exchange Commission (the 'SEC') on 29 June
2006. 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.


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