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Randgold Resources (RRS)

  Print      Mail a friend       Annual reports

Wednesday 28 April, 2004

Randgold Resources

1st Quarter Results

Randgold Resources Ld
28 April 2004


London, 28 April 2004 - London (LSE:RRS) and Nasdaq (GOLD) listed Randgold
Resources sold one gold mine and started building another in the first quarter
of this year as it continued  to consolidate its project development and
exploration presence in Africa.

The Company today reported a profit from mining of US$7.8 million for the three
months to March, down from the previous quarter's US$12.7 million as a result of
lower production at its Morila joint venture.  Production at Morila was impacted
negatively by downtime related to the commissioning of a plant expansion
programme.  While mining costs were up with new contract prices coming into
effect, total cash costs of US$185/oz were below forecast.  The net loss for the
quarter of US$4.9 million is mainly attributable to a non-cash loss of US$5.8
million on the mark-to-market valuation on the last day of the quarter on the
forward sales taken out as part of Loulo's project financing.

Results for the quarter do not include the US$10 million plus royalties netted
by the recently announced sale of Randgold's 80% stake in the dormant Syama mine
to Resolute.  Completion of the sale transaction is expected by mid-May.
Randgold has kept Syama on care and maintenance since 2002, when the collapse of
the gold price made it unprofitable.

At Morila, the expansion programme has been mostly completed after a series of
delays due mainly to supply logistics.  The programme has been designed to
offset the anticipated reduction in the grade by boosting plant throughput from
250 000 tons per month to 350 000 tons.  Since the commissioning of the
secondary crusher installation on 17 March there has been a marked improvement
in mill throughput and if the upward trend is sustained, the Company believes
that the mine will still meet its production target for the year of 535 000
ounces.  In the meantime, the search for more ounces at Morila is continuing,
with the first of nine new targets around the mine being drill-tested.

Construction is under way and on track at Randgold's new mine at Loulo, with the
basic infrastructure scheduled for completion before the onset of the rainy
season in July.  The mine is due to go into production in mid-2005.

Loulo's resource base was increased from 4.26 million ounces to 5.32 million
ounces during the quarter as a result of a deep drilling programme which
continues to prove the extensions of the orebodies at depths below the two open
pits.  A prefeasibility study has been commissioned to investigate the potential
for two new underground mines at Loulo in addition to the two opencast mines
currently being developed.

During the quarter, exploration work was accelerated on Randgold's properties in
West and East Africa.  Aggressive drilling programmes are continuing at Morila
and Loulo, and site preparation is well advanced for drilling to start in the
Morila region as well as Senegal.  Holdings in Tanzania have been consolidated
and new targets developed, and a new permit has been granted in Burkina Faso.

Following its recent establishment of a presence in Ghana, Randgold has entered
into a joint venture agreement with local miner Adansi Asaasi to explore a
licence covering prime ground bordering on Ashanti's Obuasi mine.  It has also
concluded a partnership deal with longtime associate Inter-Afrique to identify
and exploit opportunities in Ghana's gold mining sector.

'Apart from the Morila expansion programme delays, it's been a rewarding and
productive quarter,' chief executive Dr Mark Bristow said today.

'Our excitement about the new mine at Loulo is being heightened by the great
results coming out of the deep-drilling there.  The prospect of an underground
operation, which will lift Loulo into a much bigger league, is becoming
increasingly tangible.  The Syama story has had a happy ending:  we preserved a
national asset for Mali, found a new owner to operate it, and realised some
value for ourselves.  At Morila, we're working with our joint-venture partners
to ensure that the mine meets its targets.

'In line with our belief that value creation in the mining industry can best be
achieved through discovery and development, we've stepped up our exploration
programmes, and we're investigating some very interesting opportunities in our
existing areas of operation as well as in Ghana, which is a new front for us.'

At the Company's annual general meeting earlier this week, shareholders approved
a motion, subsequently approved by the court, which clears the way for dividend
payments to start by expunging accumulated losses through the share premium
account.  A move to improve the tradability of Randgold Resources' stock further
through a two-for-one share split also got the green light.


Chief Executive, Dr Mark Bristow                                        +44 779 775 2288

Financial Director, Roger Williams                                      +44 779 771 9660

Investor & Media Relations, Kathy du Plessis                            +27 11 728 4701, Cell: +27 (0) 83 266 5847  

[email protected]


*********FORMAL ANNOUNCEMENT***********


Incorporated in Jersey, Channel Islands

Reg. No. 62686

LSE Trading Symbol: RRS

Nasdaq Trading Symbol: GOLD


* Sale of Syama to net US$10 million plus royalties (before fees)

* Morila expansion nears completion and shows signs of improved throughput

* Construction of Loulo mine on schedule

* Successful drilling programme leads to resource upgrade at Loulo

* Exploration budget increased following significant exploration success

* New Ghana JV secures prime ground next to Obuasi Mine

* New targets identified in Senegal, Morila region and Burkina Faso

* Exploration produces positive results in Tanzania

Randgold Resources Limited has 29.3 million shares in issue as at 31 March 2004


                 Unaudited   Unaudited   Unaudited
                   quarter     quarter     quarter
                     ended       ended       ended
                    31 Mar      31 Dec      31 Mar

US$000                2004        2003        2003

Gold sales revenue  15 274      18 054      31 586

Cost of sales

Production costs     8 768       6 035       6 521

Transport and
refinery costs          52          76         115

Transfer to deferred
stripping           (2 388)     (2 062)       (373)

Cash operating
costs*               6 432       4 049       6 263

Royalties            1 079       1 261       2 207

Total cash costs*    7 511       5 310       8 470

Profit from mining
activity*            7 763      12 744      23 116

Depreciation and
amortisation         2 421       3 570       2 313

Merger transaction
costs+                   -       2 401           -

Exploration and corporate
expenditure          3 016       3 077       2 810

Profit from
operations*          2 326       3 696      17 993

Interest received      292         229          71

Interest expense      (465)       (445)       (542)

(Loss) on financial
instruments**       (5 847)     (1 996)       (276)

Other expenses      (1 174)     (1 265)       (219)

(Loss)/profit on
ordinary activities before
taxes and minority
interests           (4 868)        219      17 027

Income tax               -           -           -

Minority shareholders'
interest                 -           -          79

Net (loss)/profit   (4 868)        219      17 106

Basic earnings per
share (US$)          (0.17)       0.01        0.61

Fully diluted
earnings per
share (US$)          (0.17)       0.01        0.61

Average shares
in issue (000)      29 262      29 099      27 821

The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).

* Refer to pro forma information provided on page 3.

+ Expenses incurred on the Ashanti Goldfields proposal.

** Based on a gold price of US$420/oz at 31 March 2004


                      Unaudited           Unaudited
                       3 months            3 months
                          ended               ended
                         31 Mar              31 Mar

US$000                     2004                2003

Net cash generated
from operations             564              21 134

Net cash utilised in
investing activities     (8 479)             (1 285)

Net cash generated by
financing activities

Ordinary shares issued       13               1 712

Movement on financial
instruments              (1 308)                  -

Decrease in long-term
borrowings                 (381)               (556)

Increase in bank
overdraft                   185                 167

Net (decrease)/increase
in cash and cash
equivalents              (9 406)             21 172

Cash and cash equivalents
at beginning of period  105 475              59 631

Cash and cash
equivalents at end
of period                96 069              80 803


                  Unaudited    Unaudited    Audited
                         at           at         at
                     31 Mar       31 Mar     31 Dec
US$000                 2004         2003       2003


Cash and cash
equivalents          96 069       80 803    105 475

Restricted cash**     3 888        4 533      3 882

Receivables          14 219       10 079     15 196

Inventories          16 544       11 809     17 165

Total current
assets              130 720      107 224    141 718

Property, plant
and equipment

Cost                183 668      169 818    175 195

depreciation       (104 794)     (94 417)  (102 373)

Net property,
plant and equipment  78 874       75 401     72 822

Other long-term
assets               13 090        7 775     10 885

Total assets        222 684      190 400    225 425

Bank overdraft        1 735        1 337      1 550

Accounts payable
and accrued
liabilities          21 199       18 239     23 557

Total current
liabilities          22 934       19 576     25 107

Provision for
rehabilitation        5 946        5 044      5 962

Liabilities on
instruments          13 027        5 777      8 488

Long-term loans       7 487       18 890      7 723

Loans from outside
shareholders in
subsidiaries            958        1 251        958

Total long-term
liabilities          27 418       30 962     23 131

Total liabilities    50 352       50 538     48 238

equity              172 332      139 862    177 187

Total liabilities
and shareholders'
equity              222 684      190 400    225 425

** Note: This is the amount relating to the N.M. Rothschild & Sons Limited debt
service reserve account.  The amount is held in escrow for the partial repayment
of the Morila project loan.


                               of    Share     Share
                         ordinary   capital  premium
                           shares    US$000   US$000

Balance -
31 Dec 2002            27 663 740    2 766   190 618
Jan - Mar 2003

Net profit                               -         -

Movement on cash
flow hedges                              -         -

Share options
exercised                 471 926       47     1 665

Balance -
31 March 2003          28 135 666    2 813   192 283

Balance -
31 Dec 2003            29 260 385    2 926   200 244
Jan - Mar 2004

Net loss                                 -         -

Movement on cash
flow hedges                     -        -         -

Share options
exercised                   3 000        -        13

Balance -
31 Mar 2004            29 263 385    2 926   200 257

                       Other     mulated       Total
                    Reserves      losses      equity
                      US$000      US$000      US$000

Balance -
31 Dec 2002          (8 293)    (66 106)     118 985
Jan - Mar 2003

Net profit                -      17 106       17 106

Movement on cash
flow hedges           2 059           -        2 059

Share options
exercised                 -           -        1 712

Balance -
31 March 2003        (6 234)   (49 000)      139 862

Balance -
31 Dec 2003          (7 403)   (18 580)      177 187
Jan - Mar 2004

Net loss                  -     (4 868)       (4 868)

Movement on cash
flow hedges               -           -            -

Share options
exercised                 -           -           13

Balance -
31 Mar 2004          (7 403)    (23 448)     172 332


The Company uses the following pro forma disclosures:

*  Total cash costs per ounce are calculated by dividing total cash costs, as
determined using the Gold Institute Industry Standard, by gold ounces produced
for all periods presented.

*  Total cash costs as defined in the Gold Institute Industry Standard, includes
mine production, transport and refinery costs, general and administrative costs,
movement in production inventories and ore stockpile, transfers to and from
deferred stripping and royalties.  Total cash cost 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 the Company's performance.  The Company believes
that total cash cost per ounce is a useful indicator 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 costs as the company's operations
mature, a measure of a company's gross margin per ounce, by comparison of total
cash cost per ounce to the spot price of gold, and a benchmark of performance to
allow for comparison against other companies.

*  Cash operating costs are defined as total cash costs excluding royalties.

*  Total cash operating costs per ounce are calculated by dividing cash
operating costs by gold ounces produced for all 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, merger transactions and exploration and corporate
expenditure from profit from mining activity.


The interim condensed financial statements presented in this report have been
prepared in accordance with International Financial Reporting Standards (IFRS),
which differ in certain significant respects from Generally Accepted Accounting
Principles in the United States (US GAAP).  The effect of applying US GAAP to
net income and shareholders' equity is set out in the following table:

                                3 months   3 months
                                  31 Mar     31 Mar

Reconciliation of net income        2004       2003


Net (loss)/income under IFRS      (4 868)    17 106

Share option compensation
adjustment                         1 022        195

Provision for rehabilitation           -          -

Net (loss)/income under US GAAP
before cumulative effect of change
in accounting principle           (3 846)         -

Cumulative effect of change in
accounting principle*                  -        214

Net (loss)/income under US GAAP   (3 846)    17 515

Movement in cash flow hedges
during the period                      -      2 059

Comprehensive (loss)/income under
US GAAP                           (3 846)    19 574

Basic earnings per share under
US GAAP (US$)                      (0.13)      0.62

Fully diluted earnings per share
under US GAAP (US$)                (0.13)      0.62

Reconciliation of Shareholders'
equity (US$000)

Shareholders' equity under IFRS   172 332   139 862

Provision for rehabilitation            -         -

Shareholders' equity under
US GAAP                           172 332   139 862

Roll forward of shareholders'
equity under US GAAP

Balance as at 1 January 2004      177 187   118 771

Net income under US GAAP           (3 846)   17 515

Movement on cash flow hedges            -     2 059

Share options exercised                13     1 712

Share option compensation
adjustment                         (1 022)    (195)

Shareholders' equity under
at 31 Mar 2004                    172 332   139 862

*  The cumulative effect of change in accounting principle relates to the
implementation of FAS 143 'Accounting for obligations associated with the
retirement of long-lived assets' on 1 January 2003 which aligns US GAAP to IFRS.


The condensed financial statements in this report have been prepared in
accordance with the Group's accounting policies, which comply with International
Financial Reporting Standards and are consistent with the prior period.

The consolidated financial information includes the quarterly financial
statements of the Company, its subsidiaries and the Morila joint venture.

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.

No segmental information has been provided, as the source and nature of the
enterprise's risks and returns are not governed by more than one segment.



The financial instruments at 31 March 2004 held by the Morila company are the
remainder of derivatives taken out as part of the project finance arrangements.
Randgold Resources' attributable share is as follows:

* 38 956 ounces sold forward at a fixed price of US$275/oz over the period April
2004 to December 2004

* 13 788 ounces of call options purchased at a price of US$360/oz over the same

At present prices, the percentage of attributable production which is hedged is
approximately 15% for the next nine months.  After 2004, 100% of Morila's
production will be exposed to spot gold prices.


As part of the Company's financing arrangements for the development of Loulo,
Randgold Resources has secured some price protection.  At 31 March 2004, 300 000
ounces had been sold forward at an average spot price of US$409/oz.  The Loulo
price protection has been done at a Randgold Resources level, short dated, and
will be rolled down, longer dated, into the Loulo company once the project
financing has been put in place, planned for completion at the beginning of the
third quarter 2004.  At that time, the longer contango will become effective
which will enhance the spot price.

In addition to the above, the Company carried out a Forward Rate Agreement (FRA)
as part of the hedge to fix the 4 year gold lease rate.  An average rate of
1.67% for the four years was achieved.

Marked-to-market Valuation

Movements in marked-to-market valuations of financial instruments can be
accounted for in two ways, either through the income statement or directly to
reserves, depending on the nature of the instrument.  The Morila instruments are
accounted for mainly on a hedge basis i.e. are matched to production and
movements on the marked-to-market valuation are therefore accounted for in
reserves.  The Loulo instruments are currently deemed speculative for accounting
purposes and any marked-to-market movements have to be accounted for through the
income statement.  Once the instruments are rolled out in the third quarter of
2004, the instruments can then be deemed hedges and can be accounted for through
reserves.  The current negative impacts on the Company's income statement will
then be reversed.


Profit from mining activity* for the quarter of US$7.8 million was lower than
the previous quarter's US$12.7 million.  Ounces produced were 107 115 compared
to 119 637 in the previous quarter.  This is partly due to the mine plan which
scheduled lower production this quarter and partly due to a decrease in
throughput as the plant expansion was commissioned.  In addition, mining costs
were higher as the new contract prices became effective.  Nevertheless, total
cash costs were US$185/oz which was lower than the forecast given last quarter
for the year of US$190/oz.

Production levels are scheduled to pick up later in the year with higher grade
ore being accessed and higher plant throughput.  Production for the year is
still expected to be 535 000 ounces, as forecast last quarter.

After exploration and corporate expenditure of US$3 million, and depreciation of
US$2.4 million, profit from operations for the quarter was US$2.3 million.

The loss on financial instruments of US$5.8 million is a non-cash item resulting
from the mark-to-market valuation on the forward sales taken out as part of the
Loulo Project financing.  These have been taken out at the corporate level and
are therefore currently classified as speculative for accounting purposes and as
such are accounted for wholly through the income statement.  More details are
given in the Financial Instruments section.

The net loss for the quarter of US$4.9 million compared to the previous quarter
net profit of US$0.2 million and the corresponding quarter in 2003 of US$17.1
million profit is mainly attributable to the lower revenue and negative
adjustments on the value of financial instruments on the last day of the

The figures do not include profits from the sale of Syama which will be
accounted for in the second quarter of 2004.

The main movements on the balance sheet are a decrease in the cash and cash
equivalents mostly attributable to the financing of the Loulo capital project
and an increase in liabilities on financial instruments which results from the
mark-to-market valuation.  The long-term loans are mainly the attributable share
of Morila's project financing which will be repaid in June 2004.  It is planned
that the Loulo construction will be substantially financed by bank loans, with
the Company's equity portion being spent first.  The project financing creates
gearing for the shareholders and allows the Company to preserve cash to finance
its future growth.


Morila results

                  Quarter       Quarter       Quarter
                    Ended         ended         ended
                   31 Mar        31 Dec        31 Mar
                     2004          2003          2003


Tons mined (000)    6 605         5 955         5 957

Ore tons

mined (000)           887           956         1 223


Tons processed

(000)                 795           842           830

Head grade milled

(g/t)                 4.9           5.0           9.8

Recovery (%)         86.0          87.4          93.7

Ounces produced   107 115       119 537       238 421

Average price
received (US$/ounce)  369           367           338

Cash operating
costs* (US$/ounce)    160            85            65

Total cash costs*

(US$/ounce)           185           111            88

Cash profit

(US$000)           19 408        31 860        57 790

Attributable (40%)

Ounces produced    42 846        47 815        95 368

Cash profit

(US$000)            7 763        12 744        23 116

*  Refer pro forma information provided above

A new contract was concluded in the quarter with the mining contractor DTP who
performed well achieving a 10% increase in tons mined compared to the previous
period.  The mine is also in discussion with the Union and the Government
departments of Labour and Mining on questions relating to a productivity bonus.

As reported last quarter, the plant expansion commissioning was delayed into the
quarter under review.  Production throughput was down due to down time related
to tying in the new sections of the plant which impacted on gold production.
Recoveries were also impacted by the commissioning.  Ounces produced were 107
115 compared to 119 637 in the previous quarter.  The decrease is also partly
due to the mine plan which scheduled lower production this quarter.  Production
levels are planned to pick up later in the year with higher grade ore being
accessed and higher plant throughput forecast as a result of plant expansion.
Production for the year is still targeted at 535 000 ounces as forecast last

The secondary crushing and cyclone cluster sections of the plant upgrades have
now been commissioned and are starting to show increasing throughputs.  The CIL
tank commissioning is currently in progress, the purpose of which is to provide
longer residence time to improve recoveries.

With the commissioning largely completed, production is expected to build up to
budget levels.  Costs were reasonably well controlled in the quarter, although
increased to US$185/ounce due to lower throughput, higher contract mining costs
and the write down of certain store items.


On 5 April Resolute Mining exercised its option to buy Randgold Resources' 80%
interest in the Syama Mine, which has been on care and maintenance since 2002.
In terms of the option, Resolute will pay Randgold Resources US$6 million and
assume liabilities of US$7 million of which US$4 million is payable to Randgold
Resources.  At a gold price of more than US$350 per ounce, Randgold Resources
will also receive a royalty of US$10 per ounce on the first million ounces of
production from Syama and US$5 per ounce on the next three million ounces based
on the attributable ounces acquired by Resolute.  The closure of the transaction
is subject to the finalisation of documentation in accordance with the Option
Agreement.  Completion is expected by mid-May and will incorporate a structured
hand-over.  Resolute has paid a non-refundable deposit of US$1.3 million.  The
balance will be paid on closure in mid-May.

Syama income statement

                 Quarter        Quarter     Quarter
                   Ended          ended       ended
                  31 Mar         31 Dec      31 Mar

US$000              2004           2003        2003

Other expenses      (659)        (1 127)       (335)

Loss on ordinary
activities before
taxes               (659)        (1 127)       (335)

Income tax             -              -           -

Net loss            (659)        (1 127)       (335)

The costs for the quarter represent on-going care and maintenance, overdraft
interest and staff costs.  Following the sale to Resolute, Randgold Resources
income statement will no longer be impacted by Syama's costs.  The assets of
Syama have been largely written down to nil and therefore the sale will result
in an accounting profit.  The sale will be accounted for in the second quarter
of 2004 when the profit on sale will be recognised.


Loulo Mine

All aspects of the construction and development of the mine were advanced in the

SRK has carried out pit optimisation studies based on a gold price of US$350/oz.
  The pit scheduling is based on an initial mining rate of 90 000 tons of ore
per month from each of the two pits.  The mining will be contracted out and a
tender process has been initiated.  Submission of tenders is due by 7 May.
After completion of the tender process, the pits will be re-optimised and tested
at a US$375/oz and US$400/oz gold price.  Pre-stripping is scheduled to commence
in the last quarter of 2004.

Treatment of the ore will be by a crushing and ball milling circuit.  An interim
contract has been agreed with MDM for the initial plant work and final design
for the process plant and infrastructure has been completed and approved.
Tender documentation has been issued to selected contractors, including MDM, for
the main contract for construction of the plant.

Power will be supplied by a diesel-generated power plant.  Tenders have been
received and the contract will be awarded in the second quarter of 2004.

Construction is underway on roads, construction camp and water supply.  The site
is being cleared in preparation for the laying of foundations.  The critical
path remains the completion of the initial civil engineering work before the
rainy season commences in July.  Agreement in principle has been reached with
the Government of Mali for the construction of 90 kilometres of national road
between Sadiola and Kenieti will greatly facilitate access to site.  Randgold
Resources will carry out the construction and will be re-imbursed by the State
from future production royalties.

Good progress has been made on the project financing.  The banks' independent
engineers RSG are currently performing their due diligence work and final loan
documentation is nearing completion.  The target date for finalisation of the
project financing is July 2004.

A significant upgrade in the mineral resource base was declared during the
quarter as a result of the deep drilling programme which continues to prove the
extensions of orebodies at depths below the Loulo 0 and Yalea open pits.  In
total, resources increased at Loulo from 4.26 million ounces to 5.32 million
ounces.  Fuller details of the drilling results are given in the exploration

A total of US$7.7 million was spent in the quarter on the project.  This was
mainly spent on securing long lead-time items, site construction materials,
particularly steel ahead of the recent steel price increases and on drilling

Based on an initial scoping study and following the success of the deep drilling
exploration programme, Randgold Resources is investigating the potential for two
new underground mines at Loulo.  The study will look into the feasibility of
exploiting the depth extensions below the open pits at Loulo 0 and Yalea which
would significantly extend the projected six-year life of the project.

SRK Consulting will complete the underground prefeasibility study on both the
Loulo 0 and Yalea orebodies by July this year and if positive this will lead to
the completion of the full feasibility study by year-end.  The optimum open pit
to underground interface will also be established.

Tongon Project

The situation in the Cote d'Ivoire is being monitored.  UN peacekeeping troops
have been deployed to make a new beginning in areas of the peace process where
there has been regression.  The Company has maintained its presence in the
country and is capable of recommencing feasibility and exploration work without
delay once the political and security environment returns to acceptable levels.


During the quarter, exploration work was accelerated on the Company's projects
in West and East Africa:

*  An aggressive drilling programme was carried out at Loulo.

*  Drilling continued within the Morila lease.

*  Focus on drill site preparation for commencement of drilling programmes in
the Morila Region and Senegal.

*  Good progress was made in Ghana with the establishment of an office and the
   generation of new targets.

*  New targets were developed and ground holdings were consolidated in Tanzania

*  A new exploration permit was granted in Burkina Faso.

The corporate exploration budget was increased by US$2.4 million.  US$2.0
million of the increase has been allocated to Loulo to fund the work required to
achieve the strategic objective of advancing the deeper Yalea and Loulo 0
resources to indicated status.  The remainder of the increase will be spent on
establishing new projects in Ghana and Burkina Faso and in drilling new targets.

At the Yalea deposit within the Loulo project area, a further 18 deep holes were
drilled. These confirmed the continuity of known high grade pay shoots down to
vertical depths of 510 metres and discovered new ones that do not come to
surface.  The ore zone is becoming wider with depth without diminution of grade
and a number of high grade intercepts have been made.  These include high grade
intercepts of 23 metres @ 12.5 g/t, 18 metres @ 33.0 g/t and 14 metres @ 26.9 g/
t (including 6 metres @ 42.5 g/t).  Drilling also closed the gap with the P125
deposit and confirmed continuous mineralisation over a 2.7 kilometre north-south
direction, which has only been tested at depth over 2.3 kilometres.
Reconnaissance exploration south of the Yalea orezone has confirmed that the
footwall mylonite structure, which controls the mineralisation, can be traced
south of the current drill coverage for a further 1 600 meters.  Drill testing
is currently in progress along this target zone.  A 15 000 metre drilling
programme has been designed to take the Loulo 0 and Yalea resources to indicated
status down to depths of up to 500 metres below surface.  Finally, generative
and regional programmes clearly confirm the three main structural corridors
covering the lease area and follow up soil sampling has defined four new,
untested, gold in soil anomalies with values of up to 1.2 g/t which locate
within a 10 kilometre radius of the plant site.

Table 1: Deep drilling results along the Yalea structure (2.3 kilometre strike

Hole ID     From    To    Width   Grade
              (m)    (m)     (m)   (g/t)    Including

YDH122     317.0   349.0   32.0    10.9    23m @ 12.5

YDH123     329.0   351.0   22.0     3.5      5m @ 7.4

YDH124     268.0   278.5   10.5     7.4             -

YDH125     336.0   344.0    8.0     4.1             -

YDH126     368.0   394.0   26.0     2.6      6m @ 6.5

YDH127     357.0   372.0   15.0     5.2             -

YDH128     293.0   302.3    9.3     4.8             -

YDH129     329.0   349.0   20.0     2.6     10m @ 3.9

YDH130     408.0   411.0    3.0     1.1             -

YDH131     278.0   297.0   19.0     5.4             -

YDH132     487.0   539.0   52.0    10.7    14m @ 26.9
                                   (incl 6m @ 42.5g/t)

YDH133     328.0   330.0    2.0      1.2      Faulted

YDH133 A   310.0   313.0    3.0      1.6      Faulted

YDH135     347.0   351.0    4.0      3.4

YDH136     586.4   590.1    3.7     23.9

YDH140     619.0   631.0   12.0     18.6

YDH141     547.0   572.0   25.0     13.5

P125DH09    83.0   103.0   20.0      1.0     4m @ 2.1

P125DH10   100.0   124.0   24.0      6.2            -

P125DH11   132.0   154.0   22.0      2.2    10m @ 3.1

P125DH12   136.0   162.0   25.0      28.7  18m @ 33.0

P125DH13   200.0   207.0    7.0      3.2     2m @ 7.8

P125DH14   215.0   224.0    9.0      3.5     6m @ 4.6

P125DH15   226.0   242.0   16.0      4.9    11m @ 6.5

P125DH16   218.0   231.0   13.0      6.4            -

At the Morila mine a recently completed generative study has outlined nine new
targets with similar structural settings to Morila and drill testing has
commenced on the first of these. Following completion of the near mine
geological model, several areas around the current pit with the potential to
yield continuous flat lying mineralisation have been targeted for further

Outside of the Morila joint venture, but within the Morila region, three targets
have been prioritised for drilling based on encouraging trench and pit results
and the geological model.  At Sagala a recently completed helicopter borne
magnetic survey has delineated a 30 kilometre, north-east striking structural
zone traversing the Company's permit, and highlighted two new targets requiring

In Senegal, three targets have been outlined for drill testing.  These include a
well-defined mineralised dilational zone with an 800 metre strike length at
Tomboronkoto and a conceptual target with multiple mineralised zones in quartz
feldspar porphyry and brecciated gabbro locating within a broad 2.5 kilometre by
1.5 kilometre soil anomaly.  Site preparation is currently in progress and,
subject to drill rig availability, drilling is planned to commence before the
rainy season in July.

The Company has consolidated its position in priority target areas within the
Mara and Musoma greenstone Belts in the Lake Victoria goldfields of Tanzania.
In the Mara Belt, ground has been secured covering the eastern extension of the
structural zones hosting the deposits currently being mined by East African Gold
Mines.  On the Nyabigena South licence, three auriferous vein sets with grades
of 0.5 to 78.3g/t (n=58) cover a 1 000 metre by 800 metre target zone.  The
veins are associated with silica and carbonate alteration and foliated granites
with shallow dips.  In the Musoma belt the Company now holds 10 licences
covering 695km2 forming a contiguous set over a strike length of 30 kilometres.
Regional and reconnaissance exploration has been completed and five target areas
have been identified with gold occurrences and intersecting structures which
will be the focus of follow up work after the rainy season.

In Burkina Faso, the Company has been granted the Danfora permit which covers
45km2 and locates in the south west region of the country within the Banfora
greenstone belt. Reconnaissance work has identified a plus one kilometre zone of
gold mineralisation locating on the sheared contact between granodiorite and
basalt and returning values of between 0.5 and 72.0g/t from 48 rock samples.
The target is ready for drill testing and this will be effected through an RC
programme once a rig becomes available.  An application for a second permit in
Burkina Faso is still pending.


Annual ore resources showed a net gain for the year despite the decreases in
resources at Morila.  The expansion of total attributable resources from 7.67
million ounces to 7.95 million ounces was due mainly to the success of the deep
drilling programme at Loulo which continued to prove the extensions to the
orebodies at depth.

At Morila, while resources and reserves decreased, the higher confidence
measured resources increased from 14% of the total at the end of 2002 to 40% at
the end of 2003 and reserves in the proved category increased from 17% to 43%.

Annual Resource and Reserve Declaration as at 31 December 2003:

                 Tonnes      Grade     Gold     Gold

Category           (Mt)      (g/t)    (Mozs)  (Mozs)

Mineral Resources


Measured and

Indicated        30.56       3.68      3.62    1.45

Inferred          2.06       2.96      0.20    0.08

Indicated and
Inferred         32.62       3.63       3.81   1.53


Measured and
Indicated        32.80       3.95       4.16   3.33

Inferred         11.18       3.22       1.16   0.93

and Inferred     43.97       3.76       5.32   4.26


Inferred         34.00       2.65       2.89   2.17

Total Resources

and Indicated    63.36       3.82       7.78   4.78

Inferred         47.23       2.79       4.24   3.17

Indicated and
Inferred        110.59       3.38       12.03  7.95

Ore Reserves


Proved and
Probable         25.74        3.74       3.09  1.24


Proved and
Probable         11.69        3.77       1.42  1.14

Total Ore
Proved and
Probable         37.43        3.75       4.51  2.37

* Randgold Resources reports its Mineral Resources and Ore Reserves in
accordance with the JORC code.

* Total resources are reported without the contribution from Syama.  On 5 April
2004, Resolute Mining announced their intention to acquire Randgold Resources
interest in the Syama Mine.

* Reserves are calculated at a gold price of US$350/oz.

* Dilution and ore loss are incorporated into the calculation of reserves.


The Company continues to look at a number of opportunities both at a corporate
and project level.  As has been stated in the past, value creation in the mining
industry is best achieved through discovery and development.  Notwithstanding
the fact that we continue to search for value or strategic leverage in M&A
opportunities, Randgold Resources has been consistent in its belief of organic
growth through exploration.  In the past quarter, we were able to secure a
select number of early stage projects/exploration permits in what are considered
highly prospective geological terrains.  This resulted from detailed
investigations by our generative team over the last 12 months.  The most
significant of these projects is in Ghana.

The Company has entered into a co-operative agreement with Inter-Afrique
Holdings to identify and exploit profitable business opportunities in Ghana's
gold mining sector and has also signed a joint venture agreement with local
Ghanaian company Adansi Asaasi Mining. Randgold's association with Inter-Afrique
dates back to the early 1990s and the company was a major advisor to Randgold
Resources in its bid to acquire Ashanti last year.

The Company has signed a joint venture agreement in Ghana with local company
Adansi Asaasi Mining to effect exploration on a licence located directly north
east of the Obuasi mining lease.  The Obuasi mine has been operational for more
than 100 years and has produced approximately 27 million ounces of gold.
Mineralisation is associated with the reactivated Obuasi Shear; within this
shear high grade oreshoots plunge to the north east some of which do not come to
surface.  Mineralisation extends for approximately 8 kilometres along strike, to
greater than 1.6 kilometre depth and is open at depth and along strike.  The
continuation of the Obuasi Shear extends into the Adansi Asaasi permits where
previous work has indicated narrow and sporadic mineralisation at surface.  No
drilling to depth has been completed to test for buried oreshoots.

In addition the Company increased its exploration activities in Tanzania and
Burkina Faso.

The following items were tabled for shareholder approval at the Annual General
Meeting held on 26 April in Jersey:

* approval to reconstitute the Company's balance sheet so that accumulated
losses can be expunged through the share premium account, and pave the way for
dividends to be paid;

* sub-division of each ordinary share into two ordinary shares.  This will
reduce the price payable for individual shares in the Company without affecting
the value held by each current shareholder.  The intention is to further improve
the tradability of the Company's shares.

R A R Kebble    D M Bristow         R A Williams
Chairman        Chief Executive     Financial Director

28 April 2004

Registered office: La Motte Chambers, La Motte Street, St Helier, Jersey JE1
1BJ, Channel Islands


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 +27 (11) 728-4701, Fax +27 (11) 728-2547, e-mail:
[email protected]

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, the development of Loulo, estimates of reserves and mine life and
liabilities arising from the closure of Syama.  For a discussion on such risk
factors, refer to the annual report on Form 20-F for the year ended 31 December
2002, which was filed with the Securities Exchange Commission on 27 June 2003.
Randgold Resources assumes no obligation to update information in this release.

Cautionary Note to US Investors:  The United States Securities Exchange
Commission (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.  Only those proven and
probable reserves which qualify as 'proven and probable reserves' for the
purposes of the SEC's industry guide number 7 are presented in this release.
Investors are cautioned not to assume that all or any part 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                                                                                                                                                                              

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