Randgold Resources Ld
29 March 2007
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
LONG-TERM GROWTH STRATEGY DRIVES HUNT FOR PROFITABLE NEW PROSPECTS;
2006 SHOWS FURTHER PROFIT RISE, INCREASE IN RESOURCE BASE
London, United Kingdom, 29 March 2007 - Randgold Resources' consistent
adherence to a long-term growth strategy has given it a record of value creation
with few equals in the gold mining industry, says chairman Philippe Lietard in
the company's 2006 annual report, published today.
During the year the company increased its profit before tax by more than 50% to
US$74 million and started dividend payments. It ended 2006 with cash of US$143
million after spending more than US$100 million on the completion of the plant
at its Loulo mine, the repayment of the first third of the Loulo project
finance, the first stage of the underground development at Loulo and its ongoing
Lietard says the company remains committed to its strategy of investing its
financial and intellectual capital in exploration to find successful operations
capable of generating profits which it can reinvest in its future to ensure
'This is particularly important in the current market, where the excitement of a
rising gold price seems to have shifted the industry's emphasis from building
profitable businesses to pursuing short-term trading opportunities,' he says.
'We do not know how long the bull run in the gold price will continue. However,
as far as Randgold Resources is concerned, our overriding priority is to
continue finding and developing good gold prospects and building a business that
will be successful not only at present gold prices but also at the much lower
price levels at which the metal has traded in the past.'
Lietard notes that in the challenging spheres of African mining and
international markets, a company's success is directly linked to the skills and
motivation of its personnel.
'Randgold Resources has since its inception had exceptionally competent
executive and exploration teams. Over time, the company has also developed
first-class skills in the evaluation, design and development of capital
projects, operational management, corporate finance, procurement and logistics.
It has also invested a great deal of effort in nurturing local managers in host
countries, to considerable effect.'
As part of the continuing expansion of its intellectual base, the company has
added two eminent international businessmen, Norborne P Cole, Jr and Karl
Voltaire, to its board.
Also in the report, chief executive Mark Bristow says the company's long-term
approach means that it constantly has to search beyond its existing borders for
fresh profitable growth opportunities.
'Exciting and demanding as the Yalea and Gara underground developments (at
Loulo) are, we are already looking past them at future prospects. We can do
this because, as our record shows, our management teams are more than capable of
running one operation while building another and advancing a third,' he says.
Bristow says the Tongon project in the Cote d'Ivoire, currently at final
feasibility study stage, could well have the makings of the company's third
major mine. A development decision will be made at the end of 2008. Elsewhere
in Africa, the Kiaka target in Burkina Faso has emerged as a significant
mineralised gold system and in Senegal, 12 advanced targets are being evaluated.
'We ended the year with a total of 128 promising targets on almost 20 000 km(2)
in six countries in West and East Africa. In line with our policy of constantly
seeking to widen our horizons, we have recently put together an 'African hunting
team' whose brief is to find and evaluate opportunities in prospective countries
where we do not already have a presence,' he says.
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
+44 788 071 1386 Cell: +27 83 266 5847
Fax: +27 11 728 2547*
The annual report has been mailed to shareholders and is now available for
viewing or downloading from our website at www.randgoldresources.com. If you
wish to receive by post a hard copy of the report or a CD containing the report,
please e-mail or fax* your request to Kathy du Plessis at
firstname.lastname@example.org with your details.
* see fax number above
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.
This information is provided by RNS
The company news service from the London Stock Exchange