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Randgold Resources (RRS)

  Print      Mail a friend       Annual reports

Tuesday 06 May, 2008

Randgold Resources

1st Quarter Results

Randgold Resources Ld
06 May 2008

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


London, 6 May 2008 - Randgold Resources today reported a net profit of US$18.2
million for the March quarter, up 25% on the previous quarter and 42% on the
corresponding quarter in 2007, in spite of intensifying industry-wide cost
pressures, notably the sharp rise in the oil price.

Attributable production of 103 649 ounces was down 13% on the previous quarter
while total cash cost of US$440/oz was up 12% but both were in line with plan
considering the oil price.  Chief executive Mark Bristow said the company's
production and cost profile was expected to show improvement in the latter half
of the year when the new high grade Yalea underground mine at its Loulo complex
in Mali comes on stream.

The Yalea orebody has been intersected and the new mine has already delivered
its first development ore to the Loulo plant.  A second underground mine, Gara,
is at final planning stage.  Loulo's two existing open-pit operations produced
63 249 ounces at a total cash cost of US$470/oz during the quarter and the mine
is on track to meet its full-year target of 265 000 ounces. The underground
operations are scheduled to increase this annual output to 400 000 ounces by

Elsewhere in Mali, Randgold Resources took over operational responsibility for
the Morila mine from its joint-venture partner AngloGold Ashanti during the
quarter.  Following the change, a multi-disciplinary review team from both sides
identified a number of operational issues which require rectification.
Corrective action is being taken.

'As Morila continues to move to lower-grade ore and eventually to stockpile
retreatment, plant efficiency and effective grade control will be paramount.
Our first priority has been to ensure the maximum availability of the plant and
we've made good progress on this and other fronts.  We've also had to reconcile
some discrepancies between the grade control and ore reserve models, as a result
of which we have reduced Morila's forecast production for 2008 from 465 000 to
430 000 ounces,' Bristow said.

Morila produced 101 000 ounces at a total cash cost of US$393/oz during the
quarter against the previous quarter's 129 193 ounces at US$334/oz.

In Cote d'Ivoire, site preparation is underway at Tongon where the company's
third mine is scheduled for development.  Infill drilling increased Tongon's
probable reserves by 52% to 2.44 million ounces during the past quarter and
Bristow said continued drilling was likely to upgrade more resources to the
reserve category.  He noted that development of the mine was proceeding in
tandem with a steady improvement in the political climate in Cote d'Ivoire,
where general elections have been scheduled for 30 November this year.

The acquisition of a further 5% participation interest in Tongon has increased
Randgold Resources' stake in the project to 81%.  As in the case of Loulo,
Randgold Resources will now be able to consolidate 100% of Tongon and show
minority interest separately.

On the exploration front, three advanced targets - Massawa in Senegal, Tiasso in
Cote d'Ivoire and Kiaka in Burkina Faso - are scheduled for drill-testing in the
current quarter.  The company's exploration teams are active in six West and
East African countries, constantly feeding new prospects into its pipeline.

'We're also looking closely at a number of external growth opportunities,
including joint ventures, which offer us the potential of creating real value
through the application of our skills.  Such opportunities will, of course, have
to meet the same return and other investment criteria we require from our
organically generated projects,' Bristow said.


Chief Executive       Financial Director      Investor & Media Relations
Dr Mark Bristow       Graham Shuttleworth     Kathy du Plessis
+44 788 071 1386      +44 779 614 4438        +44 20 7557 7738
+44 779 775 2288      +44 1534 735 333        Email:



-   Net profit up 25% on previous quarter in spite of industry cost pressures.
-   Morila delivers satisfactory performance but reduces production guidance for
    the year.
-   Loulo delivers strong production to support annual group forecast.
-   Yalea underground development intersects orebody and first development ore
    delivered to plant.
-   Continued infill drilling at Tongon delivers a 52% increase in reserves.
-   Equity participation in Tongon project increased to 81%.
-   Initial results from a 7 000 metre drilling programme confirm significant
    mineralisation at Massawa.
-   Exploration drilling to focus on three advanced targets.

Randgold Resources Limited had 76.2 million shares in issue as at 31 March 2008

US$000                                            Quarter      Quarter      Quarter           12
                                                    ended        ended        ended       months
                                                   31 Mar       31 Dec       31 Mar        ended
                                                     2008         2007         2007       31 Dec
Gold sales#                                        87 002       89 855       63 065      289 841
Total cash costs*                                  45 579       47 093       35 007      158 318
Profit from mining activity*                       41 423       42 762       28 058      131 523
Exploration and corporate expenditure              13 952       12 933        6 521       35 920
Profit before income tax                           25 489       22 323       16 225       66 901
Net profit                                         18 155       14 492       12 748       45 628
Net profit attributable to equity                  15 966       13 385       11 418       42 041
Net cash generated from operations                 17 096       31 741       13 567       62 233
Cash and financial assets                         336 801      343 133      139 407      343 133
Attributable production+ (ounces)                 103 649      119 736      109 198      444 573
Group total cash costs per ounce*+ (US$)              440          393          321          356
Group cash operating costs per ounce*+ (US$)          392          347          284          315

#   Gold sales do not include the non-cash profit/(loss) on the roll forward of
*   Refer to explanation of non-GAAP measures provided.
+   Randgold Resources consolidates 100% of Loulo and 40% of Morila.


Net profit for the group of US$18.2 million increased by 25% compared to the
December 2007 quarter of US$14.5 million and by 42% compared to the March 2007
quarter of US$12.7 million.  This is mainly due to higher gold prices achieved
during the quarter, which averaged US$841/oz compared to the prior quarter of
US$721/oz, offset by lower production.  The reduction in other expenses quarter
on quarter, as well as savings in interest expenditure due to the repayment of
the corporate facility in December 2007 also increased net profit.

Profit from mining at US$41 million was in line with the December 2007 quarter
and up 48% from the March 2007 quarter.  Attributable ounces produced for the
quarter of 103 649 were down 13% from the December 2007 quarter and down 5% from
the corresponding March 2007 quarter but in line with the plan.  Total cash cost
per ounce of US$440/oz for the quarter was up 12% from the December 2007 quarter
and up 37% from the March 2007 quarter.  This is mainly due to a decrease in the
average grade mined and milled at both mines and in line with the life of mine
plans.  Production plans at Loulo estimate an increase in the grade during the
second half of the year when the underground production comes on stream,
significantly increasing ounces produced at Loulo.  Industry wide cost
pressures, especially the sharp increase in oil prices (up 9% in the past
quarter and 71% in the past 12 months), continued weakening of the dollar and an
increase in general consumables and commodities also impacted negatively on
costs during the quarter, especially in comparison with the first quarter of

Exploration and corporate expenditure increased from US$12.9 million for the
December 2007 quarter and US$6.5 million in the March 2007 quarter to US$13.9
million in the current quarter.  The increase is due to a US$5.5 million
increase in bonus accruals in line with the 35% increase in the company's share
price over the quarter.  This was partially offset by a decrease in exploration
expenditure resulting from the decision taken by the board on 31 January 2008 to
develop the Tongon mine. Accordingly, all expenditure incurred directly on the
project has been capitalised with effect from February 2008.  A total of US$2.5
million relating to the Tongon project was capitalised during the quarter.
Finance costs for the quarter of US$0.3 million were significantly lower
compared to the previous quarter's US$1.4 million and the March 2007 quarter of
US$0.8 million, due to the repayment of the corporate facility of US$40.8
million in December 2007.  Finance income was broadly in line with the previous
quarter, at US$2.6 million, reflecting the higher average cash balances
following the equity issue in December 2007, offset by a drop in interest rates
but higher than the corresponding quarter in 2007.



Loulo produced 63 249 ounces of gold during the quarter at a total cash cost of
US$470/oz (cash operating cost of US$429/oz) compared to last quarter's
production of 68 059 ounces at US$436/oz (cash operating cost US$399/oz).  The
drop in production, as a result of a decrease in the average grade of ore mined
and processed, was in line with the current mine plan.

After additional equipment was mobilised by the mining contractor at the
beginning of the fourth quarter in 2007, the mine continued to improve its
operational flexibility with additional tonnes being moved over and above the
mine plan similar to the previous quarter.  This should ensure the operation is
in a position to meet its targeted throughput during the coming midyear rainy

The higher gold prices received during the quarter also corresponded with higher
fuel prices and a weaker US dollar, which impacted negatively on consumables and
other commodity prices and resulted in a negative impact on the cash operating
costs.  Randgold Resources continues to remain focused on the quantities of the
commodities consumed in the production process in order to keep costs under

                                                  Quarter      Quarter      Quarter           12
                                                    ended        ended        ended       months
                                                   31 Mar       31 Dec       31 Mar        ended
                                                     2008         2007         2007       31 Dec
Tonnes mined (000)                                  7 846        7 476        5 707       20 978
Ore tonnes mined (000)                                869          710          657        2 431
Tonnes processed (000)                                701          686          687        2 654
Head grade milled (g/t)                               3.1          3.5          3.2          3.3
Recovery (%)                                         90.9         89.4         93.8         93.2
Ounces produced                                    63 249       68 059       67 908      264 647
Average price received+ (US$/oz)                      787          695          543          612
Cash operating costs* (US$/oz)                        429          399          287          337
Total cash costs* (US$/oz)                            470          436          320          372
Profit from mining activity* (US$000)              19 876       17 472       15 337       63 598
Gold sales*+ (US$000)                              49 589       47 175       37 034      162 154

Randgold Resources owns 80% of Loulo with the Government of Mali owning 20%.
The Government's share is not a free carried interest.  Randgold Resources has
funded the Government portion of the investment in Loulo by way of shareholder
loans and therefore controls 100% of the cash flows from Loulo until the
shareholder loans are repaid.

Randgold Resources consolidates 100% of Loulo and shows the minority interest

*   Refer to explanation of non-GAAP measures provided.
+   Includes the impact of 17 499 ounces delivered into the hedge at US$429/oz
in the quarter ended 31 March 2008, 19 254 ounces delivered at US$439/oz in the
quarter ended 31 December 2007, 19 254 ounces delivered at US$439/oz in the
quarter ended 31 March 2007 and 90 836 ounces delivered at US$426/oz for the
year ended 31 December 2007.

Resource and Reserve Update

During the quarter, the group released its annual resource and reserve
declaration and the relevant extract relating to the Loulo reserves is shown in
the table below, including a comparison with 2006 figures:

Loulo Ore Reserves

Category                    Tonnes       Tonnes      Grade        Grade       Gold       Gold    Attribut-
                              (Mt)         (Mt)      (g/t)        (g/t)     (Mozs)     (Mozs)         able
                              2007         2006       2007         2006       2007       2006         gold
Proved                        8.95        11.21       3.36         3.47       0.97       1.26         0.77
Probable                     45.47        37.93       4.40         4.54       6.43       5.54         5.15
Total                        54.42        49.14       4.23         4.30       7.40       6.80         5.92


Morila had a satisfactory production performance during the first quarter.  A
total of 101 000 ounces were produced at a total cash cost of US$393/oz (cash
operating cost of US$334/oz) compared to last quarter's production of 129 193
ounces at US$337/oz (cash operating cost US$279/oz).

Processed grades were up on plan, which compensated for the lower than planned
throughput caused by poor plant availability and utilisation.

                                                  Quarter      Quarter      Quarter           12
                                                    ended        ended        ended       months
                                                   31 Mar       31 Dec       31 Mar        ended
                                                     2008         2007         2007       31 Dec
Tonnes mined (000)                                  5 701        6 700        5 015       23 859
Ore tonnes mined (000)                              1 531        1 681          935        5 016
Tonnes processed (000)                              1 008        1 026        1 055        4 163
Head grade milled (g/t)                               3.4          4.3          3.4          3.7
Recovery (%)                                         91.3         91.7         92.2         91.6
Ounces produced                                   101 000      129 193      103 224      449 815
Average price received (US$/oz)                       926          797          652          710
Cash operating costs* (US$/oz)                        334          279          278          282
Total cash costs* (US$/oz)                            393          337          322          332
Profit from mining activity* (US$000)              53 868       63 224       31 803      169 810
Attributable (40% proportionately
Gold sales (US$000)                                37 413       42 680       26 031      127 687
Ounces produced                                    40 400       51 677       41 290      179 926
Profit from mining activity* (US$000)              21 547       25 290       12 721       67 925

*   Refer to explanation of non-GAAP measures provided.

The reserve base for Morila as at end 2007 is tabulated below with a comparison
to figures as at the end of 2006:

MORILA Ore Reserves
Category                   Tonnes       Tonnes       Grade      Grade       Gold         Gold    Attribut-
                             (Mt)         (Mt)       (g/t)      (g/t)     (Mozs)       (Mozs)         able
                             2007         2006        2007       2006       2007         2006         Gold
Proved                      13.11        15.36        2.21       2.50       0.93         1.23         0.37
Probable                     9.95        11.35        2.01       2.47       0.64         0.90         0.26
Total                       23.06        26.71        2.13       2.49       1.57         2.13         0.63

As a result of AngloGold Ashanti's notification to Randgold Resources that it
was considering the disposal of its 40% share of Morila, it was agreed that
Randgold Resources assume the operatorship of the mine.  This was effected on 15
February 2008.  On assumption of operatorship, a multi-disciplinary team
comprising Randgold Resources and AngloGold Ashanti representatives performed an
on-site audit of the current situation.

Several operational issues were identified as requiring rectification.  These

-   lack of short interval controls;
-   poor maintenance; and
-   poor communication with suppliers of critical equipment.

Consequently we have instituted corrective action and have also identified the
possibility of increasing plant throughput which we will investigate further to
evaluate the options and possible benefits.

An investigation was launched into the discrepancy between results from the
grade control model and the life of mine ore reserve model (October 2007), which
was returning lower tonnes and grade.  A new hybrid model, incorporating the
additional drilling from October 2007, was compiled.  This has shown lower
tonnages and grades due to wireframe changes based on geological interpretation,
increased amounts of internal waste as well as the increased variability of the
orezones on the fringes of the orebody.

As a result of these changes, we have reduced the forecast production for 2008
from the previous guidance of 465 000 ounces to a total of 430 000 ounces.
Randgold Resources will continue to look for ways of increasing production
during the year and is reviewing any impact on future years' production.
Advanced grade control has been prioritised with a second rig being brought to




The development of the Yalea underground mine at Loulo in Mali continued at the
pace set in January and a total advance of 735 metres was achieved during the
first quarter of 2008.

The twin declines have now reached 800 metres from surface at a vertical depth
of 130 metres.  The development of the return airway break-away access
intersected the orebody in April.

A total advance of 1 651 metres has been recorded by the section to date.

Work also progressed on the third portal from the previously mined out P125 pit.
The portal structure has been completed and development within the orebody is


The design for the Gara underground project is currently being finalised.
Studies are in progress for optimising the portal position, with the aim of
balancing conveying distance, development metres and ground conditions in such a
way that capital and operating costs are minimised for the life of the project.
In the final design many of the Yalea experiences and design improvements will
be incorporated.

The development of the declines will start in January 2009.  In its current
design, the mine has probable reserves of 17.08 million tonnes at 3.91g/t and it
is expected to produce 100 000 tonnes per month when in full production.  This
output target is expected to be realised in early 2011.


Following the publication of the ore reserve statement in Randgold Resources'
annual report, revised ore reserve estimates were calculated during the quarter
based on the drilling completed to the end of 2007.  In addition, an agreement
was concluded with Randgold Resources' joint venture partners in Cote d'Ivoire,
New Mining CI, to increase Randgold's interest in the joint venture to 90%.
Consequently, Randgold Resources now owns an effective 81% interest in the
Tongon project, which is reflected in the table below:

                                        Category        Tonnes         Grade        Ounces     Attribut-
                                                          (Mt)         (g/t)         (Moz)          able
Northern zone
Open pittable                          Indicated          9.78          2.46          0.77          0.63
                                        Inferred          0.49          3.34          0.05          0.04
Underground                             Inferred          5.02          2.65          0.43          0.35
Southern zone
Open pittable                          Indicated         32.18          2.34          2.42          1.96
                                        Inferred          7.48          2.45          0.59          0.48
Total indicated                                          41.96          2.37          3.20          2.59
Total inferred                                           12.99          2.56          1.07          0.87

Based on pit optimisation at a gold price of US$550/oz and practical pit designs
the following in pit reserves have been declared as of April 2008:

                                                       Tonnes         Grade          Gold     Attribut-
                                                         (Mt)         (g/t)         (Moz)          able
Northern zone
Probable                                                 5.59          2.40          0.43          0.35
Southern zone
Probable                                                27.17          2.30          2.01          1.63
Total probable                                          32.76          2.32          2.44          1.98

Revised pit designs and the increased participation in the project have resulted
in a 61% increase in the attributable reserve from 1.23 million ounces to 1.98
million ounces.  Total probable reserves have increased 52%, from the 1.61
million ounces reported in the Type 3 Feasibility to 2.44 million ounces.

There is, in addition, potentially mineable material of 0.37Mozs within the pit
design as tabulated below:

                                                       Tonnes         Grade          Gold     Attribut-
                                                         (Mt)         (g/t)         (Moz)          able
Southern zone
Total                                                    5.46          2.13          0.37          0.30

-   During the quarter an additional 13 000 metres of drilling has been
completed, mainly infill of the southern zone which is designed to convert most
of the inferred resources within the pit to indicated resources.  Results from
this infill phase are now being incorporated into the feasibility resource

-   Sterilisation drilling has commenced to cover the areas planned for the mine
infrastructure which has been finalised subject to geotechnical testwork.

-   Eight mining contractor companies have pre-qualified in the tender process
and will shortly visit site prior to submission of tenders.

-   Plant design is being progressed by SENET and the long lead items for the
plant have been ordered.

-   Environmental studies are in the process of being finalised.

-   Meetings were held in all of the 'Most Affected Villages' as part of the PPP
(Public Participation Process) and all inhabitants were briefed on the
implications of the mining development.  Their concerns were noted and a village
consultative council was established which holds regular meetings.

-   The pre-construction budget has been approved and the site is gearing up to
prepare infrastructure that will allow work to continue through the wet season.

Discussions continue with the State regarding the conclusion of a Mining

The Government has recently announced that the first round of elections would be
held on 30 November 2008.


The first quarter of 2008 has seen the exploration teams making the most of the
dry season across both West and East Africa by advancing their projects as per
the strategic objectives.

In Senegal, at Massawa, a new phase of diamond drilling confirmed the continuity
of mineralisation and the presence of coarse visible gold, while further surface
exploration including soil sampling and RAB drilling has extended the target
from 2.8 kilometres to over 6 kilometres in strike length.  Geologically the
target is underlain by a sequence of overturned sediments and volcanics, which
have been intruded by felsic dykes, gabbros and granitic bodies. Mineralisation
locates in various lithologies (sediments and porphyries) but is structurally
controlled with a prominent hangingwall and footwall structure, exploiting
carbonaceous sedimentary units.  There are varying degrees to the intensity of
alteration (silica-carbonate-sericite-pyrite-arsenopyrite) and locally
brecciation and brittle fracturing are associated with the gold mineralisation.
The table below details the results received from the latest phase of diamond
drilling, which has so far concentrated along a 1 kilometre segment of the
overall 6 kilometre mineralised structure:

Hole ID                                                   From           To        Intersection
                                                           (m)          (m)
                                                                                 Interval        (g/t)
MWDDH008                                                 86.30        89.20          2.90         6.90
                                                         98.40       105.70          7.30        31.04
                                                        109.50       125.00         15.50         1.93
MWDDH009                                                 70.70       121.00         50.30         1.42
                                                        253.35       259.20          5.85         1.55
MWDDH010                                                 88.80        94.00          5.20         3.40
                                                        113.10       119.90          6.80         4.70
                                                        123.00       142.25         19.25         1.50
MWDDH011                                                 69.50        73.50          4.00         4.20
MWDDH012                                                 48.70        49.70          1.00         4.15
MWDDH013                                                 46.00        53.00          7.00         1.13
                                                         97.00       103.00          6.00         2.00
                                                        129.00       137.00          8.00         1.09
                                                        140.00       141.00          1.00        10.20
                                                        183.50       193.06          9.56         1.09

In addition to Massawa in Senegal, exploration work has been continuing on
adjacent satellite targets within the Bakan Corridor where RAB drilling on the
Tiwana target has defined a continuous zone of low grade gold mineralisation
along a 2.2 kilometre strike.  At Sofia, RAB drilling has now defined two
approximately 2 kilometre long targets for additional diamond drilling.

At Loulo the first quarter has been relatively quiet as the airborne EM survey
was flown over the 1 400km2 consolidated groundholding in the Loulo district.
The data is now being processed and modelled.  Early observations of the raw
data indicate that the survey provides a more detailed structural and geological
framework, clearly defines the Senegal-Mali shear zone, folding, the
intersection of north east and north south structures, which play a key role in
controlling gold mineralisation, and a number of large intrusives.  The data is
currently with external consultants to complete a detailed interpretation and
three dimensional modelling which will incorporate all of the geological and
drill data; this will enable a detailed target generation study, which will
drive future exploration programmes.

At Morila, Randgold Resources' team has started reviewing and validating all of
the exploration and mining data in order to develop an exploration model for
drill testing in Q4.  This recent work reveals the orebody relates to a north
west shear system and the development of an overturned fold at the contact
between fine and coarser grained sediments.  These may be unconformable and
marked by a mafic volcanic unit as defined by the geochemical and petrographic
studies.  Granodiorite and tonalitic igneous intrusions played a key role in
creating the heat flow and driving the hydrothermal cell.  The extension of this
target to the east is considered to be a high priority.

In Mali South, work has focused on reconnaissance RAB drilling of the Bagoe East
and Bagoe West permits held in joint venture with African Gold Group (AGG).
These permits cover prospective Morila-type settings along the Banifin shear
zone in close proximity to the Morila deposit.  Gold mineralisation is
associated with splay structures from the main shear, anticlinal folds and
granitic intrusions.

In Burkina Faso at Kiaka, preparations are underway to drill test the possible
extension to mineralisation along the axis of a plunging anticline to the north
where the last diamond hole KDH013 returned 166 metres at 1.26g/t.  In addition,
a 10 000 metre RAB drilling programme is underway to evaluate regional targets.
Of these Limsega is the most advanced where exploration has identified a 3.4
kilometre long anomalous gold in soil structural corridor.  Trenching has
returned a best intercept of 22 metres at 2.27g/t, including 10 metres at 

In Ghana, work on the Bole NE concession has identified five targets for
follow-up work. All targets are associated with parasitic folds on the limbs of
a much larger regional anticline and shear structures have been mapped along the
fold limbs.  Gold mineralisation concentrates in the hinge zone of the folds and
within the shears associated quartz veins and silica-sericite alteration zones.
Trenching is underway in preparation for RAB drilling during Q2.

In Cote d'Ivoire, great progress has been made at Tongon in the conversion of in
pit resources to reserves.  While this programme continues, deeper drilling on
both deposits is also underway to test the continuation of high grade plunging
shoots.  Randgold Resources also has drill motivations prepared for Tongon East,
South and Poungbe satellite targets within the Nielle permit and preparations
are underway to re-establish a base at the Boundiali permit, 100 kilometres to
the west of Nielle, where Randgold Resources has the advanced target of Tiasso
waiting to be drilled.  This target is characterised by a 2 kilometre long gold
in soil anomaly which was previously tested by five trenches.  Of these, three
returned encouraging results: TAT001 - 25 metres at 4.39g/t; TAT003 - 8 metres
at 2.78g/t; TAT004 - 14 metres at 2.66g/t, 4 metres at 25.98g/t and 10 metres at

In Tanzania, RAB drilling has been completed on targets along a 20 kilometre
north west trending structural corridor at Miyabi, a joint venture with African
Eagle, where results are pending.  Following the granting of permits in the
Proterozoic mobile belt surrounding the Archaean craton soil sampling and
mapping have been completed. Gold mineralisation is hosted in highly deformed
and silicified metamorphosed rock units above a major thrust.  The units consist
of thinly bedded impure marble and biotite gneiss/granulite.

US$000                                                Quarter       Quarter       Quarter             12
                                                        ended         ended         ended         months
                                                       31 Mar        31 Dec        31 Mar          ended
                                                         2008          2007          2007         31 Dec
Gold sales on spot                                     95 841        96 708        70 483        313 421
Loss on matured hedges                                (8 839)       (6 853)       (7 418)       (23 580)
Non-cash (loss)/profit on roll forward of                   -       (2 277)           235        (7 036)
Total revenues                                         87 002        87 578        63 300        282 805
Other income                                            1 499           764           167            967
Total income                                           88 501        88 342        63 467        283 772
Mine production costs                                  42 825        40 921        31 445        136 312
Movement in production inventory and ore              (6 049)       (4 427)       (3 740)       (11 534)
Depreciation and amortisation                           5 695         3 421         6 072         20 987
Other mining and processing costs                       3 134         4 309         3 018         13 638
Mining and processing costs                            45 605        44 224        36 795        159 403
Transport and refinery costs                              742           736           247          1 595
Royalties                                               4 927         5 554         4 037         18 307
Exploration and corporate expenditure                  13 952        12 933         6 521         35 920
Other expenses                                              -         3 950           712          5 008
Total costs                                            65 226        67 397        48 312        220 233
Finance income                                          2 527         2 748         1 917          9 167
Finance costs                                           (313)       (1 370)         (847)        (5 805)
Finance income - net                                    2 214         1 378         1 070          3 362
Profit before income tax                               25 489        22 323        16 225         66 901
Income tax expense                                    (7 334)       (7 831)       (3 477)       (21 273)
Net profit                                             18 155        14 492        12 748         45 628
Attributable to:
Equity shareholders                                    15 966        13 385        11 418         42 041
Minority shareholders                                   2 189         1 107         1 330          3 587
                                                       18 155        14 492        12 748         45 628
Basic earnings per share (US$)                           0.21          0.19          0.17           0.60
Diluted earnings per share (US$)                         0.21          0.19          0.16           0.60
Average shares in issue (000)                          76 173        71 591        68 820         69 589

The results have been prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the IASB on a basis consistent with the
annual financial statements.

US$000                                                                   At             At             At
                                                                     31 Mar         31 Dec         31 Mar
                                                                       2008           2007           2007
Non-current assets
Property, plant and equipment                                       278 499        269 896        245 443
Cost                                                                361 720        347 422        308 054
Accumulated depreciation and amortisation                          (83 221)       (77 526)       (62 611)
Deferred taxation                                                     2 009          2 163          2 654
Long term ore stockpiles                                             46 422         43 190         43 915
Receivables                                                          24 390         22 823         13 856
Total non-current assets                                            351 320        338 072        305 868
Current assets
Inventories and stockpiles                                           61 029         57 410         35 161
Receivables                                                          44 669         42 104         35 803
Available-for-sale financial assets                                  48 950         48 950              -
Cash and cash equivalents                                           287 851        294 183        139 407
Total current assets                                                442 499        442 647        210 371
Total assets                                                        793 819        780 719        516 239
Shareholders' equity                                                604 711        598 799        342 110
Minority interest                                                    10 483          8 294          6 037
Total equity                                                        615 194        607 093        348 147
Non-current liabilities
Long term borrowings                                                  2 228          2 773         24 739
Loans from minority shareholders in subsidiaries                      3 394          3 096          2 801
Deferred taxation                                                     1 451          1 451            462
Financial liabilities - forward gold sales                           45 943         51 953         46 693
Provision for rehabilitation                                         11 171         11 074          8 938
Total non-current liabilities                                        64 187         70 347         83 633
Current liabilities
Financial liabilities - forward gold sales                           42 162         33 672         20 010
Current portion of long term borrowings                               3 495          3 647         24 819
Accounts payable and accrued liabilities                             66 082         63 330         39 630
Taxation payable                                                      2 699          2 630              -
Total current liabilities                                           114 438        103 279         84 459
Total equity and liabilities                                        793 819        780 719        516 239

The financial instruments liability increased following the increase in the gold
price and reflects the marked-to-market valuation of the hedged ounces at 31
March 2008, calculated at the spot price as at that date of US$933.50/oz.
During the quarter, the company delivered 17 499 gold ounces into its hedge
positions, which reduced the financial instruments liability, given the higher
gold price.  The decrease in the non-current financial liabilities is due to the
effect of lower US dollar interest rates on forward gold prices, as well as a
reduction in the total hedged ounces outstanding.

US$000                                                                    3              3             12
                                                                     months         months         months
                                                                      ended          ended          ended
                                                                     31 Mar         31 Mar         31 Dec
                                                                       2008           2007           2007
Profit before income tax                                             25 489         16 225         66 901
Adjustment for non-cash items                                         7 519          6 410         31 747
Effects of changes in operating working capital items              (10 743)        (4 285)       (24 178)
Receivables                                                         (3 978)          (619)       (23 289)
Inventories and ore stockpiles                                      (6 851)        (3 262)       (24 786)
Accounts payable and accrued liabilities                                 86          (404)         23 897
Income tax paid                                                     (5 169)        (4 783)       (12 237)
Net cash generated from operating activities                         17 096         13 567         62 233
Acquisition of property, plant and equipment                       (14 298)       (10 215)       (47 905)
Financing of contractors                                                  -              -              -
Acquisition of available-for-sale financial assets                        -              -       (48 950)
Net cash used by investing activities                              (14 298)       (10 215)       (96 855)
Proceeds from issue of ordinary shares                                  423            470        236 063
Decrease in long term loans                                           (399)          (897)       (43 740)
Dividends paid to company's shareholders                            (9 154)        (6 874)        (6 874)
Net cash generated by financing activities                          (9 130)        (7 301)        185 449
Net (decrease)/increase in cash and cash equivalents                (6 332)        (3 949)        150 827
Cash and cash equivalents at beginning of period                    294 183        143 356        143 356
Cash and cash equivalents at end of period                          287 851        139 407        294 183

The changes in receivables are mainly due to higher contractor costs at Loulo as
a result of the fuel price increase which impacted transport costs and fuel paid
on behalf of contractors, as well as an increase in TVA balances at Morila.

The increase in inventories and ore stockpiles is the result of a build up of
stockpiles at Morila and an increase in inventories at Loulo due to the
increased demand resulting from the development of the underground mines.

The board of directors approved an annual dividend of 12 US cents per share on
31 January 2008.  This resulted in an aggregate dividend payment of US$9.1
million which was made in March 2008.


                         Number      Share      Share       Other     Accum-       Total   Minority       Total
                             of    capital       pre-        res-     ulated      attri-   interest      equity
                       ordinary     US$000       mium       erves    profits     butable                 US$000
                         shares                US$000      US$000     US$000   to equity     US$000
Balance - 31         68 763 561      3 440    213 653    (59 430)    178 400     336 063      4 707     340 770
December 2006
Movement on cash
flow hedges -
Transfer to                   -          -          -       7 183          -       7 183          -       7 183
income statement
Fair value                    -          -          -     (6 627)          -     (6 627)          -     (6 627)
movement on
Net income                    -          -          -         556          -         556          -         556
directly in
Net profit                    -          -          -           -     11 418      11 418      1 330      12 748
Total recognised              -          -          -         556     11 418      11 974      1 330      13 304
Share-based                   -          -          -         477          -         477          -         477
Share options            71 500          4        466           -          -         470          -         470
Exercise of                   -          -        111       (111)          -           -          -           -
expensed under
Shares vested#           10 102          -        170       (170)          -           -          -           -
Dividend relating             -          -          -           -    (6 874)     (6 874)          -     (6 874)
to 2006
Balance - 31         68 845 163      3 444    214 400    (58 678)    182 944     342 110      6 037     348 147
March 2007
Balance - 31         76 140 330      3 809    450 814    (69 391)    213 567     598 799      8 294     607 093
December 2007
Movement on cash
flow hedges -
Transfer to                   -          -          -       8 839          -       8 839          -       8 839
income statement
Fair value                    -          -          -    (11 319)          -    (11 319)          -    (11 319)
movement on
Net income                    -          -          -     (2 480)          -     (2 480)          -     (2 480)
directly in
Net profit                    -          -          -           -     15 966      15 966      2 189      18 155
Total recognised              -          -          -     (2 480)     15 966      13 486      2 189      15 675
Share-based                   -          -          -       1 157          -       1 157          -       1 157
Share options            39 500          2        421           -          -         423          -         423
Exercise of                   -          -        132       (132)          -           -          -           -
expensed under
Shares vested#            6 594          -        160       (160)          -           -          -           -
Dividend relating             -          -          -           -    (9 154)     (9 154)          -     (9 154)
to 2007
Balance - 31         76 186 424      3 811    451 527    (71 006)    220 379     604 711     10 483     615 194
March 2008

#   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.


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
comprising 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 accounting policies, there are no transfers to and from deferred

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.

Gold sales is a non-GAAP measure.  It represents the sales of gold at spot and
the gains/losses on hedge contracts which have been delivered into at the
designated maturity date.  It excludes gains/losses on hedge contracts which
have been rolled forward to match future sales.  This adjustment is considered
appropriate because no cash is received/paid in respect of these contracts.

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

The following table reconciles total cash costs and profit from mining activity
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:

US$000                                                Quarter       Quarter       Quarter             12
                                                        ended         ended         ended         months
                                                       31 Mar        31 Dec        31 Mar          ended
                                                         2008          2007          2007         31 Dec
Gold sales on spot                                     95 841        96 708        70 483        313 421
Loss on matured hedges                                (8 839)       (6 853)       (7 418)       (23 580)
Gold sales                                             87 002        89 855        63 065        289 841
Mine production costs                                  42 825        40 921        31 445        136 312
Movement in production inventory and ore              (6 049)       (4 427)       (3 740)       (11 534)
Transport and refinery costs                              742           736           247          1 595
Royalties                                               4 927         5 554         4 037         18 307
Other mining and processing costs                       3 134         4 309         3 018         13 638
Total cash costs                                       45 579        47 093        35 007        158 318
Profit from mining activity                            41 423        42 762        28 058        131 523


The group's hedging position at 31 March 2008 is summarised below:
Maturity date                                                                       Forward       Forward
                                                                                      sales         sales
                                                                                     Ounces       average
Year ended 2008                                                                      62 997        429.28
Year ended 2009                                                                      84 996        434.90
Year ended 2010                                                                      41 748        500.38
Total                                                                               189 741        447.44

The forward contracts all relate to Loulo with Morila's production being
completely exposed to spot gold prices.  The remaining portion of the hedge book
represents approximately 18% of the planned production at Loulo and 13% of the
group's production for the period.


Depleted to December 2007, including latest Tongon figures:

At 30 April 2008 (abridged)

MINE/         Category                    Tonnes      Grade       Gold  Attribut-
PROJECT                                     (Mt)      (g/t)      (Moz)       able          
MINERAL                                                                      gold
RESOURCES                                                                   (Moz)

Loulo                                                                         80%
              Measured and indicated       63.95       4.62       9.51       7.61
              Inferred                     25.90       2.92       2.43       1.95
Morila                                                             40%
              Measured and indicated       22.95       2.19       1.62       0.65
              Inferred                      0.83       3.05       0.08       0.03
Tongon                                                             81%
              Measured and indicated       41.96       2.37       3.20       2.59
              Inferred                     12.99       2.56       1.07       0.87
Total                                     128.86       3.46      14.32      10.84
measured and
Total                                      39.72       2.81       3.58       2.84

Loulo                                                                         80%
              Proved and probable          54.42       4.23       7.40       5.92
Morila                                                             40%
              Proved and probable          23.06       2.13       1.57       0.63
Tongon                                                             81%
              Probable                     32.76       2.32       2.44       1.98
Total proved                              110.23       3.22      11.42       8.53
and probable

Randgold Resources reports its mineral resources and ore reserves in accordance
with the JORC code.  The reporting of ore reserves is also in accordance with
SEC Industry Guide 7.

Pit optimisation is carried out at a gold price of US$550 per ounce, except for
Morila which was run at US$525 per ounce; underground reserves are also based on
a gold price of US$550 per ounce.  Dilution and ore loss are incorporated into
the calculation of reserves.

Cautionary note to US investors: the United States Securities and Exchange
Commission (the 'SEC') permits mining companies, in their filings with the SEC,
to disclose only those mineral deposits that a company can economically and
legally extract or produce.  Randgold Resources uses certain terms in this
report, such as 'resources' that the SEC guidelines strictly prohibit the
company from including in its filings with the SEC.


The company continues to evaluate various opportunities both at corporate,
project and joint venture levels.

Production is planned to increase in the second half of the year as higher
grades are accessed in the Yalea underground mine at Loulo, as per the current
mine plan.  Despite the lower forecast production at Morila, we believe it is
still possible for  Randgold Resources to meet its forecast for the year.

The site establishment at Tongon is underway and should ensure that Randgold
Resources is in a position to commence construction by the end of the year as
planned.  The programme will align well with the continuing improvements in the
political situation in Cote d'Ivoire, where presidential elections have been
confirmed for the end of November 2008.

D M Bristow                                  G P Shuttleworth
Chief Executive                              Financial Director
6 May 2008



Randgold Resources' updated resources and reserves continue to show increases in
both categories.  This should enable the company to grow production - at a time
when industry output is in decline - by 50% over the next four years.

Attributable resources rose from 12.55 million ounces at the end of 2006 to 13.7
million, while proven and probable reserves increased from 6.29 million ounces
to 8.53 million, (all numbers depleted to the end of December 2007 and include
Tongon changes from Q1).  The increases are mainly attributable to continuing
exploration at the Loulo complex in Mali and at the Tongon project in Cote
d'Ivoire.  Tongon has been grown from an exploration target to a plus 4 million
ounce resource, with 2.4 million ounces recently converted to probable reserve
in two open pits.

Backing up the Loulo underground and Tongon developments are a strong project
flow generated by the company's exploration teams operating in six countries in
West and East Africa.  This pipeline holds three advanced targets: Massawa in
Senegal, Tiasso in Cote d'Ivoire and Kiaka in Burkina Faso, all of which
demonstrate the key indicators of strong structural controls, large alteration
systems and geological competency contrasts coupled with economic gold

Drill rigs are already spinning at Massawa and the latest results are confirming
the continuity of the gold mineralisation.  This, together with the mining
operation at Loulo, has reinforced the company's belief in the prospectivity of
the Kedougou-Kenieba Inlier.  At Kiaka, the potential for 2 million ounces in a
broad, low-grade system of gold mineralisation has already been estimated. A
drill rig is being mobilised to Kiaka to test a model which could significantly
add to this resource.  Tiasso will also be drill tested in the second quarter of
the year.

In the Loulo district, meanwhile, a 1 400km2 groundholding with a significant
portfolio of brownfields targets has been consolidated.  Top of the list is
Faraba, which already has defined inferred resources and plenty of upside along
a 4 kilometre shear.  In Cote d'Ivoire, the Nielle permit not only hosts the
Tongon deposits but also 12 targets for follow-up work.


These are the key questions analysts have recently been asking Mark Bristow, and
his answers.

Q:  Isn't your commitment to organic growth excluding you from some attractive
merger and acquisition opportunities?

A:  The fact that we've built this business through discovery and development
doesn't mean that we have a blind spot when it comes to external opportunities.
We look closely at all of them; we just haven't found one that's good enough
yet.  By good enough I mean a deal that will deliver the same rate of return we
demand from our organically generated projects, or that offers a significant
strategic opportunity.  It seems self-evident that m&a activity should make
commercial sense but in the mining industry in recent years a lot of it has been
driven purely by a market that wants instant gratification.  We find our own
gold, so we're not forced to buy ounces at a premium by the demands of a bull

Q:  Are you confident that you can continue to grow production from your own

A:  We're planning to push up our production by 50% over the next few years
through the development of the Loulo underground mines and Tongon.  We're able
to do that because our exploration success has continued to build our resource
base.  At present, every gold mining company is projecting growth, yet total
industry production keeps going down.  One of the reasons for this disparity
between fact and forecast is that it's easy to promise but tough to deliver.
It's hard to discover a decent deposit.  Then you have to build a mine, which
can take anything from five to ten years.  And then you have to run it
profitably.  We've shown that we can do all three.

Q:  Is your hunt for growth opportunities going to stay focused on Africa?

A:  Focused on, yes; limited to, no.  Africa is our home turf: we know the
countries and the people well, we have good relationships with their
governments, and we have a strong competitive advantage there.  But our skills
are eminently exportable and we're a profit-driven company, so we'll go wherever
we can build a profitable gold mining business.  Of course, there aren't many
places like that:  South America maybe, the Pacific Rim and, most notably,
Eurasia, which hosts the world's biggest undeveloped gold projects.  In any
event, it's worth noting that some countries in Africa still offer significant
long-term potential, notably Burkina Faso, Cote d'Ivoire and Mali. They're not
only highly prospective, they have business-friendly governments who are
aggressively attracting investment.

Q:  One of the big issues facing the industry at the moment is cost.  How does
this affect you?

A:  The price of oil has a big impact on our business.  We generate all our own
power using diesel.  With the price of oil going up by 71% compared to the March
2007 quarter, diesel has increased from 26% to 30% as a percentage of our total
costs.  In addition, everything we use has to be transported to the mines over
long distances - literally thousands of kilometres - by diesel-powered vehicles.
Some key consumables, such as explosives, are linked to oil.  On top of that,
there are the weakness of the dollar and the general rise in inflation.  All of
this means that we have to be a lot more focused on cost control and procurement
efficiency.  So far, we've been reasonably successful, and we think we can keep
cost increases in the 10% to 15% range this year, subject to the oil price.
That will enable us to maintain and even improve our operating margin.

Q:  Another problem seems to be a shortage of skills.  How are you coping?

A:  This is a further instance of how the current short-term mania is damaging
the industry.  The proliferation of instant mining companies has squeezed the
already limited supply of skilled people.  We're not immune to this pressure,
but over the years we've invested substantially in recruiting, training and
retaining competent, committed people, and we've been particularly successful in
developing local expertise at our operations.  In the nurturing of intellectual
capital as in exploration, the long-term approach pays off.

Q:  Your share price has had a great run over the past year, but at its present
levels, can it still offer value to new investors?

A:  There's short-term value and then there's long-term value.  Randgold
Resources offers a good balance: immediate exposure to pure gold production with
a growing margin, as well as the real prospect of participation in future
discoveries.  These will be generated by a constantly replenished project
pipeline which already holds three advanced targets and a host of other
promising opportunities.  Randgold Resources also has a management with a record
of delivery and a commitment to sustained profitability.  It has zero debt and a
strong balance sheet, which means that it can fund its own growth - a
considerable advantage at a time when money is becoming very hard to find.


John Steele - General manager capital projects

In the real estate business, the three most important things are location,
location and location.  In mine development the key word is layout.  A good
layout saves capital and operating costs and allows room for expansion in the

Layout defines our footprint or how much impact we make on local land users.
It's a crucial part of our development process. Time spent upfront on this
aspect has many rewards later in the process.

The location of our orebodies is fixed naturally; we can't reposition these.
Our other infrastructure though can be optimally positioned around the orebodies
and local natural features.

After ore, the next most important natural resource to consider is water.  As
always, the simplest solutions are best.  River extraction or local dam
construction is the preferred route.  Borehole fields sound like a great
solution, but inevitably (if the other options are rivers and dams) they tap the
same sources of water as the rivers and dams. Borehole extraction is more suited
to tapping water aquifers in areas without the option of river extraction.  It's
better to seek a managed solution to water supply with the other water users in
a particular region.  Creating a local dam has aesthetic benefits as well as
providing insurance for the operation's water and a longer term resource for the
community after the mining finishes.

Where do we source our skills to build these mines?  Obviously, there's a lot of
pressure to recruit locally and particularly from the immediate vicinity of the
mine where our impact is greatest and this is what we do.  There are limits to
this in terms of work that can be done with short-term training, but we
structure the development to use local skills and identify suitable candidates
for operational employment during the construction phase.  The overall key is to
have the best operating team available, so we'll pull the most promising
candidates out of the construction workforce to ensure the best people are
available to the operating team.

The cheapest construction material for tailings storage tends to be the open pit
waste material (if it's suitable), so it pays us to find a site relatively close
to the pits to use this material for wall construction at the tailings storage

The plant is best situated close to the orebody, but there are limits as the
orebodies sometimes have extensions and the plant sites have a tendency to
become new exploration sites when situated close to the orebody.  Suitable
sterilisation drilling can quickly confirm the potential of a site for the
plant, but our first choice is a location within one kilometre of the orebody.

Our plant layout must always take heed of any potential for the mine to expand.
Upfront construction should allow for the leach train to be extended easily and
for additional milling or crushing plant to be added.  Sufficient space has to
be left in the layout to accommodate these ideals.  A well laid-out plant should
facilitate seamless expansion.

When you have all these aspects covered you get a Morila or a Loulo or indeed a
Tongon, which will be another step forward for Randgold Resources, incorporating
the lessons we've learned from our previous successful developments.


Registered office:  La Motte Chambers, La Motte Street, St Helier, Jersey JE1
1BJ, Channel Islands, Telephone +44 1534 735 333

Registrars:  Computershare Investor Services (Channel Islands) Limited, PO Box
83, Ordnance House, 31 Pier Road, St Helier, Jersey JE4 8PW, Channel Islands

Transfer agents:  Computershare Services PLC, PO Box 663, 7th Floor, Jupiter
House, Triton Court, 14 Finsbury Square, London EC2A 1BR

Investor and media relations:  For further information contact Kathy du Plessis
on Telephone +44 20 7557 7738, e-mail


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 potential risks and uncertainties include, among others, risks
associated with: fluctuations in the market price of gold, gold production at
Morila and Loulo, the development of Loulo and estimates of resources, reserves
and mine life.  For a discussion on such risk factors refer to the annual report
on Form 20-F for the year ended 31 December 2006 which was filed with the United
States Securities and Exchange Commission (the 'SEC') on 25 June 2007.  Randgold
Resources sees 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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