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Randgold Resources (RRS)

  Print      Mail a friend       Annual reports

Monday 06 February, 2006

Randgold Resources

Final Results

Randgold Resources Ld
06 February 2006


Incorporated in Jersey, Channel Islands

Reg. No. 62686

LSE Trading Symbol: RRS

Nasdaq Trading Symbol: GOLD


*  Net profit more than doubles year on year to US$41 million

*  Attributable gold production up 54% year on year at a total cash cost of

*  Randgold Resources opens Loulo, its second new mine in 5 years

*  Loulo Underground Development scheduled to start this year

*  Morila ends year with strong performance

*  Resources added at both operations

*  Exploration expands opportunities across Africa

*  Balance sheet strengthened following successful equity raising

Randgold Resources Limited has 68.1 million shares in issue as at 31 December


                                   Unaudited    Unaudited    Unaudited
                                     quarter      quarter      quarter
                                       ended        ended        ended
                                      31 Dec       30 Sep       31 Dec
US$000                                  2005         2005         2004

Gold sales revenue                    60 553       31 000       33 675

Total cash costs*                     30 238       13 941       12 356

Profit from mining activity*          30 315       17 059       21 319

Profit from operations*               18 299        9 225       14 222

Profit on ordinary activities

before taxation                       16 761        9 219       15 185

Net profit                            12 426        9 219       15 185

Net profit attributable to

equity shareholders                   10 077        9 219       15 185

Net cash generated from operations    13 486        5 360       14 310

Bank and cash                        152 452       45 022       78 240

                                                Unaudited    Unaudited
                                                12 months    12 months
                                                    ended        ended
                                                   31 Dec       31 Dec
                                                     2005         2004
US$000                                                      (restated)

Gold sales revenue                                151 502       73 330

Total cash costs*                                  68 743       37 480

Profit from mining activity*                       82 759       35 850

Profit from operations*                            46 800       10 262

Profit on ordinary activities before taxation      45 222       18 793

Net profit                                         40 887       18 793

Net profit attributable to equity shareholders     38 538       18 793

Net cash generated from operations                 29 736        4 291

Bank and cash                                     152 452       78 240


Net profit for the year ended 31 December 2005 of US$40.9 million is more than
double that of the previous year ended 31 December 2004 (US$18.79 million),
mainly as a result of the improved profit from mining offset by an increase in
exploration and corporate expenditure, increased depreciation charges and the
first income tax charge for Morila.  Net profit for the quarter ended December
2005 of US$12.4 million is down by US$2.7 million compared to the corresponding
quarter in 2004 mainly as a result of Morila's tax holiday coming to an end and
once off charges totalling US$4.7 million in respect of accounting provisions at
Morila against slow moving stock and receivables and the settlement of a dispute
of indirect taxes.  Net profit is up US$3.2 million compared to the September
quarter due to the start up of Loulo which commenced production on 1 November

Comparing the profit from mining activities for the year ended 31 December 2005
to the corresponding year ended 31 December 2004, shows an improvement of
US$46.9 million, which is attributable to Loulo commencing commercial
operations, as well as the improved gold prices received in 2005.  Similarly
gold sales revenue increased by 106% in 2005 compared to 2004 mainly as a result
of the 314 831 attributable ounces from Loulo and Morila compared to 204 194
ounces in 2004 plus the effect of the higher gold prices experienced in 2005.

Profit from mining activities for the quarter ended December 2005 compared to
the corresponding period ended December 2004 increased by US$9 million mainly as
a result of Loulo coming into production in November 2005.  Profit from mining
in the quarter increased from US$17 million in the third quarter of 2005 to
US$30 million due to a contribution of US$19.5 million from Loulo.  This was
partially offset by increased unit costs at Morila due to lower grade processed
as per the mine plan in the fourth quarter as well as the once off charges at
Morila referred to above.  While the attributable ounces sold quarter on quarter
were down 8 002 ounces at Morila the 67 984 ounces from Loulo plus the impact of
the average gold price of US$489 per ounce compared to US$410 per ounce for the
quarter ended December 2004, resulted in an 80% improvement in gold revenue.

Main balance sheet movements for the year ended 31 December 2005 include the

*  Increases in property, plant and equipment relates mainly to costs associated
   with the development of the Loulo mine;

*  The increase in stockpiles included in non-current assets relates to Morila
   and is in line with the Morila life of mine plan. Stockpiles included in 
   current assets reflect the Loulo stockpile of US$9 million which was raised 
   in November 2005 when the production phase commenced;

*  The US$11.2 million reduction in the deferred stripping balance reflects the
   low stripping ratio at Morila compared to the long-term average;

*  The increase in receivables includes US$12.2 million of advances made to the
   main contractor at Loulo, MDM Ferroman (Pty) Ltd ('MDM'). MDM was the 
   contractor responsible for construction of the Loulo mine until the main 
   construction contract was taken back on 30 December 2005. Significant 
   uncertainties exist relating to the value of securities supporting US$5.2 
   million of the US$12.2 million, the outcome of a claim against MDM for sums 
   advanced over and above the lump sum contract and the outcome of a purported 
   counterclaim by MDM to support the additional sums advanced. More detail is 
   given in the note to the balance sheet. The increase in receivables is also 
   due to fuel duties at Loulo amounting to US$3.4 million at 31 December 2005, 
   indirect tax receivables at Morila of US$3.3 million, as well as a trade 
   receivable at Loulo of US$4.2 million relating to the last gold sale for the 

*  The increase in cash and cash equivalents results from funds received as part
   of the equity raising which was completed in November 2005;

*  The increase in financial liabilities relating to forward gold sales reflects
   an increase in the negative marked-to-market valuation of contracts held at 
   31 December 2005.  The negative impact relates to the significant rise in the 
   gold price, which was US$513/ounce at 31 December 2005;

*  The increase in the provision for rehabilitation reflects a provision for the
   Loulo closure cost obligation of US$5.5 million which has been recognised.  
   The related charge has been recognised as part of the development cost;

*  The increase in current liabilities is primarily due to the short-term
   portion of the Somilo project finance loan of US$19.2 million repayable 
   within one year.



Morila produced 651 110 ounces of gold for the year, outstripping 2004's
production by some 140 000 ounces.  Slightly higher grade than budgeted as well
as increased recoveries combined with an increased milling rate led to earlier
forecasts being exceeded.  The plant is still not operating at full expanded
capacity as maintenance and throughput issues relating to the expansion are
still being dealt with.  Monthly throughput in the second half of the year
increased by almost 10% over the first half indicating that the remedial action
was taking effect.  Costs were reasonably well contained given prevailing
increases in input costs and cash operating costs before adjusting for
exceptional costs relating to provisions and indirect taxes were US$189/ounce,
slightly up from last year's costs of US$158/ounce.  Total cash costs were
US$326/oz for the quarter and US$221/ounce for the year, after the adjustments
discussed above.

Mill throughput for the fourth quarter was negatively affected by mill
re-linings and power disruptions. Good mining performance in the last quarter
allowed the mine to catch up the production lost in the third quarter as a
result of an unprocedural strike by the mining contractor's employees.

                                      Quarter     Quarter      Quarter
                                       Ended        ended        ended
Morila results                        31 Dec      30 Sept       31 Dec
US$000                                  2005         2005         2004


Tonnes mined (000)                     6 798        2 976        7 820

Ore tonnes mined (000)                 2 199        1 194        2 209


Tonnes processed (000)                   946        1 010        1 012

Head grade milled (g/t)                  5.2          5.8          7.5

Recovery (%)                            90.8         91.4         92.6

Ounces produced                      146 049      172 901      226 679

Average price received (US$/oz)          485          443          410

Cash operating costs* (US$/oz)           290          166          109

Total cash costs* (US$/oz)               326          197          136

Cash profit (US$000)                  27 418       42 648       53 298

Attributable (40%
proportionately consolidated)

Gold revenue                          29 865       31 000       33 675

Ounces produced                       58 420       69 160       90 672

Cash profit (US$000)                  10 967       17 059        21 31

                                               12 months     12 months
                                                   ended         ended
Morila results                                    31 Dec        31 Dec
US$000                                             2005           2004


Tonnes mined (000)                               24 554         26 596

Ore tonnes mined (000)                            7 041          5 335


Tonnes processed (000)                            3 763          3 512

Head grade milled (g/t)                             5.9            5.2

Recovery (%)                                       91.7           87.9

Ounces produced                                 651 110        510 485

Average price received (US$/oz)                     449            382

Cash operating costs* (US$/oz)                      189            158

Total cash costs* (US$/oz)                          221            184

Cash profit (US$000)                            158 528         89 625

Attributable (40% proportionately consolidated)

Gold revenue                                    120 814         73 330

Ounces produced                                 260 444        204 194

Cash profit (US$000)                             63 411         35 850

*  Refer to explanation of non-GAAP measures provided.

Results from resource extension drilling in the south of the pit and in the pit
wall were incorporated into the orebody model and have contributed significantly
to the increase in mineral resources during the year.  The mineralisation is
still open to the south and is currently being drilled out.

The resource base for Morila at end 2005 is tabulated below with a comparison to
figures as at end 2004.  The resource depletion as a result of mining activities
during the year was all but replaced by the delineation of additional resources.

An updated reserve statement will be published as part of the group's annual
resource/reserve tabulation at the end of the current quarter.

Morila Resources - 31 December 2005

Measured, indicated                            Tonnes   Tonnes   Grade
and inferred                                      (Mt)     (Mt)  (g/t)
mineral resources                                2005     2004    2005

Morila          Measured                        20.06    17.32    2.73

               Indicated                        14.01    11.96    3.00

Sub-total       Measured
           and indicated                        34.07    29.28    2.84

                Inferred                         3.78     4.47    3.19

Measured, indicated                   Grade     Gold     Gold     gold
and inferred                          (g/t)    (Mozs)   (Mozs)   (40%)
mineral resources                      2004     2005     2004   (Mozs)

Morila          Measured               2.95     1.76     1.64

               Indicated               3.56     1.35     1.37

Sub-total       Measured
           and indicated               3.20     3.11     3.01     1.24

                Inferred               3.79     0.39     0.54     0.16

A 40 000 metre plus regional exploration programme is currently underway which
aims to find another Morila within the 200km2 lease area.  Only a few results
have been obtained to date, the most interesting being SED002 which was drilled
on the edge of the possible extension of the high grade axis identified in the
pit. While economic mineralisation was not encountered, a broad anomalous halo
with 10 metres at grades greater than 1g/t has given encouragement to pursue
this target further.


Mining operations continued to focus on the Yalea pit during the quarter to
maintain a supply of softer ore for the plant.  Stockpiles at 31 December 2005
comprised 661 833 tonnes at 2.94g/t.

Production statistics are:

                                                 Quarter     12 months
                                                   Ended         ended
Loulo results                                     31 Dec        31 Dec
US$000                                              2005          2005


Tonnes mined (000)                                4 149         12 096

Ore tonnes mined (000)                              537          1 213


Tonnes processed (000)                              551            551

Head grade milled (g/t)                             4.5            4.5

Recovery (%)                                       94.3           94.3

Ounces produced                                  67 984         67 984

Average price received (US$/oz)                     499            499

Cash operating costs* (US$/oz)                      137            137

Total cash costs* (US$/oz)                          165            165

Cash profit (US$000)                             19 485         19 485

Gold revenue                                     30 688         30 688

Randgold Resources owns 80% of Loulo with the Government of Mali owning 20%.
Attributable production for the year is 54 387 ounces.

* Refer to explanation of non-GAAP measures provided.

The Phase 1 plant operation has been satisfactory, despite the lack of
completion of certain areas of the facility. Throughput, recovery and reagent
utilisation have all met forecast levels. The operational team continues to meet
its objectives, while the construction team picks up the pieces of the remaining
construction work on Phase 1 and the challenge to put the Phase 2 hard ore
crushing plant back on track.

The operation of the softer ore Phase 1 circuit will be extended through:

*  Utilisation of current soft ore stockpiles plus ore to be mined;

*  The use of mobile crushing facilities, which we have already established on
   site, to break down the harder material fraction, which increases as the 
   mining horizon deepens in the Yalea pit.  This will allow transitional ore to 
   be fed through the soft ore crusher;

*  Further infill drilling to facilitate grade control mapping at the P129 pit
   will allow this softer ore resource to be brought into the production mix 
   next quarter.

Manpower build-up is nearing its peak following Loulo's first commercial sale of
gold. Although the construction workforce is reducing on the Phase 1 plant, this
resource is being re-deployed on the Phase 2 construction work.  We continue to
provide further on-the-job training to local employees in the plant area to
improve their skill levels.

At Yalea, 21 diamond drill holes were completed for a total of 13 038 metres
this quarter.  Holes concentrated on extending the 'purple patch' high grade
zone with depth, infilling and better delineating the southern sub vertical high
grade shoot. Results received for the quarter are shown below.

                              section   Grade                 Selected
Hole ID      From        To  width (m)   (g/t)                   unit*

YDH233w    530.30    534.15      3.85    6.99

YDH232     459.70    471.10     11.40    7.43          2.5m @ 10.92g/t

YDH231     463.00    468.90      5.90    6.56

YDH246     701.30    711.30     10.00    7.29         4.30m @ 10.11g/t

YDH191     676.00    698.38     22.38    7.79         4.70m @ 13.91g/t

YDH243     286.30    298.70     12.40    2.36

YDH221     174.20    192.00     17.80    4.39          2.83m @ 7.36g/t

YDH222     118.06    123.94      5.88    3.04

YDH248     487.25    493.10      5.85    8.36

YDH236     261.00    261.43      0.43   14.01        Partially faulted

YDH223     766.50    800.35     33.85    8.31        19.26m @ 12.24g/t

YDH217     780.26    801.75     21.49    8.53         6.73m @ 12.74g/t

YDH247     464.13    504.98     40.85    6.93          7.00m @ 8.89g/t

YDH230     829.39    838.40      9.01    3.67          4.11m @ 5.46g/t

YDH190     773.00    780.00      7.00   10.11

YDH190     813.32    825.36     12.04    4.6           9.26m @ 5.47g/t

YDH190W    742.05    774.05     32.00    5.50           5.6m @ 15.8g/t

YDH170     732.60    745.70     13.10    3.50          6.50m @ 5.20g/t

YDH245     478.70    490.34     11.64    6.26

YDH225     764.66    766.26      1.60    3.93        Partially faulted

YDH237     740.58    745.35      4.77   23.48

*  Selection based on geology and grade

Updated Resources

Based on all drilling completed to November 2005 which does not include some of
the drill results in the table above, and mining to end of December 2005, the
resources have been updated and are presented below:

Loulo Resources - 31 December 2005

Measured, indicated                                             Attri-
and inferred         Tonnes  Tonnes  Grade  Grade  Gold   Gold butable

Mineral                (Mt)    (Mt)   (g/t) (g/t) (Mozs) (Mozs)   gold
resources              2005    2004   2005   2004   2005   2004 (Mozs)

Loulo 0,
piles      Measured   16.81   16.50   3.89   3.96   2.10  2.10

          Indicated   41.74   16.67   4.49   3.93   6.02  2.11

Sub-total  Measured
      and indicated   58.55   23.34   4.31   3.95   8.12  4.21    6.50

           Inferred    9.61   26.31   2.83   4.53   0.88  3.83    0.70

Total resources have therefore increased from 8.04 Mozs at the end of 2004 to 9
Mozs, a 12% increase despite the depletion of 73 500 ounces from ore fed to the

The big increase has occurred in the quantity of Measured and Indicated
resources from 4.21 Mozs to 8.12 Mozs mainly as a result of the infill drilling
programme in the Yalea and Loulo underground projects.

An updated reserve, which will include the latest drilling results, will be
published as part of the group's annual resource/reserve tabulation at the end
of the current quarter.


Construction of the Phase 1 circuit is sufficiently advanced to allow us to
produce gold steadily from the circuit on a soft ore feed.  The overall Phase 1
circuit has not yet achieved completion, however throughput on continuous
operations has now stabilised around 7 000 tonnes per day.  Both ball mills are
running along with the bulk of the gold recovery circuit.  The carbon
regeneration circuit will be commissioned in January 2006.

The first commercial shipment of bullion took place on 7 November 2005,
initiating the start of a five-year tax holiday for the mine as prescribed by
Mali's mining code.

All 15 generator sets in the power plant are available and there is sufficient
stable and consistent power for operational requirements.

Due to a failure on the part of MDM to meet its commitments on the Loulo
project, the main construction contract was taken back from MDM on 30 December
2005.  Randgold Resources project management team is now handling the day to day
management of the construction activities.

Civil works on the Phase 2 development are progressing with the completion of
the crushing circuit expected in the second quarter of 2006.  The primary
crusher is on site and the secondary and tertiary crushers are being shipped for
delivery to site in February 2006.  Additional manpower and mobile cranes are
being mobilised to site to ensure sufficient resources are available to complete
the construction of the crushing plant timeously.


Loulo Gold Mine Project

Loulo Underground Development Study

Good progress has been made with the underground project at Loulo. A detailed
internal review has been completed on all aspects of the feasibility study.

Several modifications to the original design have been approved:

*  The use of a conveyor belt for transporting both waste and ore from the
   underground section to surface.  This configuration offers numerous benefits,
   the most prominent being the ability to increase production rates beyond what 
   is possible by underground fleet transport;

*  Decline design incorporating long straight sections at an inclination of -9

*  The size of the decline has been changed to a 6.5 metre wide and 4.5 metre
   high decline which allows a larger cross sectional ventilation intake area 
   and accommodates the proposed conveyor system;

*  Indications at this stage are that while we will develop the Loulo 0 boxcut
   and initial portion of the decline simultaneously with the Yalea boxcut and
   decline, we would focus on the development of the Yalea mine and schedule the
   Loulo 0 development based on ore feed requirements later;

*  Current mine scheduling indicates LOM production that goes beyond 2020 and
   averages more than 250 000 ounces per annum;

*  A site visit by the prospective contractors has taken place and award of the
   contract is expected towards the end of March 2006.

The capital programme for 2006 of some US$20 million has been approved and will
allow for site establishment, purchase of mining equipment and establishment of
the portal and declines.  Portal construction will start in the third quarter
and the main decline development should access first development ore in 2007.

Tongon Project

We have continued our preparations for a return to the Cote d'Ivoire.
Notwithstanding recent events, there is evidence of a new optimism that, with
the appointment of a new Prime Minister, the requisite conditions would be in
place to proceed to elections towards the end of the year.  We recently visited
the project site and ascertained that while infrastructure had deteriorated it
would be relatively simple to restore our project office and site accommodation
so we can complete the bankable feasibility study as planned.  We plan to meet
with the relevant parties as soon as conditions allow in order to obtain
approval to start some preliminary work before the wet season in advance of the
planned general election after which we would mobilise a comprehensive programme
to complete the definitive feasibility study.


At Loulo, we continue to build the resource base which is now nine million
ounces. Exploration confirms the prospectivity of the permit following drilling
at Faraba and P64.  At Faraba, 12 out of a planned 34 RC drillholes have been
completed for a total of 1 844 metres.  This drilling has so far tested 800
metres of the four kilometre strike length of the target.  Results include:
FARC004 - a broad intersection of 78 metres at 1.60g/t with 57 metres at 2.05g/t
and higher-grade inclusions of seven metres at 6.43g/t and five metres at 4.87g/
t. FARC006 - a broad intersection of 52 metres at 2.41g/t with 28 metres at
3.49g/t and higher grade inclusions of 6 metres at 11.3g/t.  FARC021 - 27 metres
at 4.14g/t and FARC022 - 92 metres at 1.69g/t with higher grade inclusions of 11
metres at 5.55g/t and 6 metres at 3.22g/t.  At P64 seven holes for 1097 metres
were completed testing a 300 metre strike.  Results include; P64RC05 - a broad
intersection of 81 metres at 1.75g/t including four metres at 12.60g/t and five
metres at 6.86g/t and P64RC06 - a broad intersection of 71 metres at 1.67g/t
including 14 metres at 5.45g/t and 16 metres at 2.07g/t.  Drilling continues on
both targets.

At Sitakily, 21 kilometres east of Loulo, first phase reconnaissance diamond
drilling started just prior to the Christmas shut-down.  One hole was completed
and intersected a 30 metre zone of altered felsic porphyry.

At Morila, an exploration strategy has been developed with the primary aim of
providing an assessment of the full global upside resource potential within the
greater Morila lease area which will in turn drive future mine planning.  A 40
000 metre regional drilling tender has been awarded to Boart Longyear and will
start in 2006.

In South Mali, we have started a hyperspectral study over Morila and surrounding
area with the aim of identifying spectral and structural signatures associated
with the mineralisation as well as remodelling of our geophysical data to
develop a three dimensional model and the identification of conceptual targets
for drilling by the second quarter of 2006.

In Senegal, we are busy evaluating a portfolio of 31 targets, after rejecting a
total of seven targets last quarter.  Of these, Bambaraya has over 800 metres of
surface mineralisation defined and further infill drilling is required on the
plus three kilometre Sofia target.

In Burkina Faso, exploration work has started on our expanded portfolio which
includes eight new permits, giving a total land position of 2 070km(2).  This
now consolidates our ground holding along the southern half of the Markoye Fault
system which already hosts eight million ounces in six deposits.

We are ready to recommence exploration work in Ghana where an agreement has been
reached with Central Goldfields on a permit in the Sefwi belt along strike from
Newmont's Ahafo project.  A further three applications totalling 7 067km(2) have
been approved by the Minerals Commission and Inter-Ministerial Committee.

Our strategy in Tanzania has paid off with the awarding of the Kiabakari
exploration license and the conclusion of the joint venture with Tangold.  We
now dominate the land position in the Musoma Greenstone Belt.  Drill rigs are
booked to start a preliminary reconnaissance phase of drilling at Kiabakari and
continue testing conceptual models beneath complex regolith cover.


                Unaudited  Unaudited  Unaudited  Unaudited  Unaudited
                  quarter    quarter    quarter  12 months  12 months
                    ended      ended      ended      ended      ended
                   31 Dec    30 Sept     31 Dec     31 Dec     31 Dec
                     2005       2005       2004       2005       2004
US$000                                                      (restated)


Gold sales         60 553     31 000     33 675     151 502    73 330


Interest income     1 067        308        269       2 064     1 033

Exchange gains         25        179        734         413       808

Other income          194        159        215       1 303     1 502

Profit on sale of
Syama                   -          -          -           -     7 070

Total other income  1 286        646      1 218       3 780    10 413

Total revenue      61 839     31 646     34 893     155 282    83 743


Mine production
costs              26 822     11 608     11 140      66 611    37 468

Movement in
inventory and
ore stockpiles     (9 415)    (3 902)    (3 957)    (27 137)   (8 512)

Transfer from/(to)
deferred stripping  5 951      2 374        307      11 198    (3 999)

Depreciation and
amortisation        4 733      2 275      1 871      11 910     8 738

Transport and
refinery costs        162         68         93         360       233

Royalties           3 994      2 158      2 499      10 273     5 304

General and
expenses            2 724      1 635      2 359       7 438     6 809

Exploration and
expenditure         6 715      4 993      4 739      21 802    15 529

Provision for
rehabilitation       (125)       117        (85)        254       177

Interest expense      997        219        349       1 861     1 623

(Gain)/loss on
forward gold sales      -        (54)      (680)        (54)   (2 232)

Share-based payment+  568        566        487       2 247     1 321

Exchange losses       416        332          -       2 487     1 422

Other expenses      1 536         38        586         810     1 069

                   45 078     22 427     19 708     110 060    64 950

Profit on ordinary
activities before
taxes              16 761      9 219     15 185      45 222    18 793

Income tax         (4 335)         -          -      (4 335)        -

Net profit         12 426      9 219     15 185      40 887    18 793

Attributable to:

shareholders       10 077       9 219    15 185      38 538    18 793

shareholders        2 349           -         -       2 349         -

Basic earnings
per share (US$)      0.15        0.15      0.26        0.62      0.32

Fully diluted
earnings per share

(US$)                0.15        0.15      0.25        0.60      0.32

Average shares in
issue (000)        65 311      59 723    59 212      61 702    58 871

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

+ Reflects adoption of IFRS 2: Share-based payments.


                                  Unaudited    Unaudited    Unaudited
                                         at           at           at
                                     31 Dec      30 Sept       31 Dec
                                       2005         2005         2004
US$000                                                      (restated)


Non-current assets

Property, plant and equipment       202 636      188 392      129 854

Cost                                235 592      217 354      151 639

Accumulated depreciation and
amortisation                        (32 956)     (28 962)     (21 785)

Deferred stripping costs              2 560        5 513        8 514

Long-term ore stockpiles             27 868       27 516       12 054

Total non-current assets            233 064      221 421      150 422

Current assets

Deferred stripping costs              1 127        4 124        6 370

Inventories and stockpiles           33 330       10 370        9 762

Receivables                          47 937       50 491       23 667

Cash and cash equivalents           152 452       45 022       78 240

Total current assets                234 846      110 007      118 039

Total assets                        467 910      331 428      268 461

Shareholders' equity                309 737      212 141      191 169

Minority interest equity              1 395         (954)        (954)

Total shareholders' equity          311 132      211 187      190 215

Non-current liabilities

Long-term borrowings                 49 538       58 848       40 718

Loans from minority shareholders
in subsidiaries                       2 483        2 448        2 575

Financial liabilities - forward
gold sales                           34 151       22 796       15 448

Deferred income tax liabilities       1 227            -            -

Provision for environmental
rehabilitation                        9 480        8 997        3 701

Total non-current liabilities        96 879       93 089       62 442

Current liabilities

Financial liabilities - forward
gold sales                            8 939        3 683          220

Current portion of long-term
borrowings                           22 991       10 716        1 156

Accounts payable and accrued
liabilities                          27 969       12 753       14 428

Total current liabilities            59 899       27 152       15 804

Total equity and liabilities        467 910      331 428      268 461

Note: Significant uncertainties relating to transactions with a contractor

The directors believe that the group is entitled to recover US$30 million from
MDM Ferroman (Pty) Ltd ('MDM'), the contractor responsible for construction of
the Loulo mine ('the Project') until the main construction contract was taken
back on 30 December 2005.  This comprises payments totalling US$17.8 million
which have been capitalised as part of the cost of the Project and advances of
US$12.2 million included in Receivables.  Of this latter amount, US$5.2 million
is secured by various fixed assets, debtors, bank accounts and personal
guarantees, and US$7 million is secured by performance bonds.

In addition to legal action being instituted against MDM and related entities to
recover these funds from MDM, the company has obtained a provisional liquidation
order against MDM based on an initial claim of US$26 million, and an attempt by
MDM to have the provisional winding up order rescinded was dismissed on 3
February 2006.  Recovery of the full amount from MDM is dependent on the
liquidation process and the successful conclusion of the legal action referred
to above.  The directors believe that the company has sufficient security to
recover the full amount of US$12.2 million, but the ultimate value of the
security cannot presently be determined.  The consolidated financial statements
do not reflect any additional provision that may be required if the security is
found to be worth less than the receivable.

On 22 January 2006, MDM purported to submit a claim amounting to US$29 million
in respect of variations, extension of time and additional costs incurred in
respect of the Project.  This claim has not been submitted in terms of the
provisions of the contract, which is a fixed lump sum turnkey project, and the
directors believe that, apart from variations already agreed, no additional
amounts are due to MDM.  However, the ultimate outcome of this matter cannot
presently be determined.  In the unlikely circumstance that the resolution of
this dispute is in MDM's favour, this could have a negative impact on the
amounts recorded in the consolidated financial statements.


                                        Unaudited       Unaudited
                                        12 months       12 months
                                            ended           ended
                                           31 Dec          31 Dec
                                             2005            2004
US$000                                                  (restated)

Profit on ordinary activities before
taxation and minority interest             45 222          18 793

Adjustment for non-cash items              25 564          (1 918)+

Working capital changes                   (41 050)        (12 584)

Net cash generated from operations         29 736           4 291

Additions to property, plant and equipment(79 167)        (69 438)

Financing of contractors                  (12 169)              -

Movement in restricted cash                     -           3 882

Disposal of Syama - net of cash disposed        -           8 571

Net cash utilised in investing activities (91 336)        (56 985)

Ordinary shares issued                    105 248           2 133

Increase/(decrease) in long-term
borrowings                                 30 564          23 326

Net cash generated by financing
activities                                135 812          25 459

Net increase/(decrease) in cash and cash
equivalents                                74 212         (27 235)

Cash and cash equivalents at beginning
of period                                  78 240         105 475

Cash and cash equivalents at end of
period                                    152 452          78 240

+ Reflects adoption of IFRS 2: Share-based payment.


Number                                   Accum-
of            Share    Share     Other   ulated  Minority
ordinary    capital  premium  reserves  profits  interest     Total
shares       US$000   US$000    US$000   US$000    US$000    equity

Balance- 31 Dec 2004 (as previously reported)

59 226 694    2 961  102 342   (15 668) 101 534      (954)  190 215

Adoption of IFRS2 share-based payments

         -        -        -    1 321    (1 321)        -         -

Balance- 31 Dec 2004

59 226 694    2 961  102 342  (14 347)+ 100 213+     (954)  190 215

Mar 2005 Net profit

         -        -        -        -    12 120         -    12 120

Share-based payments

         -        -        -      288         -         -       288

Movement on cash flow hedges

         -        -        -    1 690         -         -     1 690

Share options exercised

   176 800        9      538        -         -         -       547

June 2005 Net profit

         -        -        -        -     7 122         -     7 122

Share-based payments

         -        -        -      823         -         -       823

Movement on cash flow hedges

         -        -        -      (52)        -         -       (52)

Share options exercised

    35 400        2       88        -         -         -        90

Restricted shares issued as remuneration #

   161 735        8        -        -         -         -         8

Treasury shares held by company #

  (107 825)      (5)       -        -         -         -        (5)

Shares vested #

         -        -      735     (735)        -         -         -

Balance - 30 June 2005

59 492 804    2 975  103 703  (12 333)  119 455      (954)  212 846

Sept 2005 Net profit

         -        -        -        -     9 219         -     9 219

Share-based payments

         -        -        -      566         -         -       566

Movement on cash flow hedges

         -        -        -  (12 503)        -         -   (12 503)

Share options exercised

   345 160       17    1 042        -         -         -     1 059

Balance - 30 Sept 2005

59 837 964    2 992  104 745  (24 270)  128 674      (954)  211 187

Dec 2005 Net profit

         -        -        -        -    10 077     2 349    12 426

Share-based payments

         -        -        -      566         -         -       566

Movement on cash flow hedges

         -        -        -  (16 602)        -         -   (16 602)

Share options exercised

    59 900        3      170        -         -         -       173

Shares vested #

    50 000        3      694     (694)        -         -         3

Capital raising

 8 125 000      406  109 281        -         -         -   109 687

Costs associated with capital raising

         -        -   (6 308)       -         -         -    (6 308)

Balance - 31 Dec 2005

68 072 864    3 404  208 582  (41 000)  138 751     1 395   311 132

# Restricted shares were issued to directors as remuneration.  Of these shares,
103 910 have vested, while the remainder of the shares are still held by the
company as treasury shares.  The transfer between 'other reserves' and 'share
premium' in respect of the shares vested represents the cost calculated in
accordance with IFRS 2.

+ Reflects adoption of IFRS 2: Share-based payment.


Total cash costs and cash cost per ounce are non-GAAP measures. We have
calculated total cash costs and total cash costs per ounce using guidance issued
by the Gold Institute.  The Gold Institute was a non profit industry association
comprised of leading gold producers, refiners, bullion suppliers and
manufacturers.  This institute has now been incorporated into the National
Mining Association.  The guidance was first issued in 1996 and revised in
November 1999.  Total cash costs, as defined in the Gold Institute's guidance,
include mine production, transport and refinery costs, general and
administrative costs, movement in production inventories and ore stockpiles,
transfers to and from deferred stripping, and royalties.  The transfer to and
from deferred stripping is calculated based on the actual historical waste
stripping costs, as applied to a life of mine estimated stripping ratio.  The
costs of waste stripping in excess of the life of mine estimated stripping
ratio, are deferred, and charged to production, at the average historical cost
of mining the deferred waste, when the actual stripping ratio is below the life
of mine stripping ratio.  The net effect is to include a proportional share of
total estimated stripping costs for the life of the mine, based on the current
period ore mined.

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.  We have calculated total cash costs and total cash costs per
ounce 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, we
believe 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.

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

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

The following table reconciles total cash costs, as a non-GAAP measure, to the
information provided in the income statement,determined in accordance with IFRS,
for each of the periods set forth below:

           Unaudited   Unaudited   Unaudited   Unaudited   Unaudited
             quarter     quarter     quarter   12 months   12 months
               ended       ended       ended       ended       ended
              31 Dec     30 Sept      31 Dec      31 Dec      31 Dec
                2005        2005        2004        2005        2004
US$000                                                     (restated)

Gold sales

Revenue       60 553      31 000      33 675     151 502      73 330

costs         26 822      11 608      11 140      66 611      37 468

Movement in
inventory and
ore stockpiles(9 415)     (3 902)     (3 957)    (27 137)     (8 512)

Transfer from/
(to) deferred
stripping      5 951       2 374         307      11 198      (3 999)

Transport and
refinery costs   162          68          93         360         233

Royalties      3 994       2 158       2 499      10 273       5 304

General and
expenses       2 724       1 635       2 274       7 438       6 986

Total cash
costs         30 238      13 941      12 356      68 743      37 480

Profit from
activity      30 315      17 059      21 319      82 759      35 850

amortisation   4 733       2 275       1 871      11 910       8 738

and corporate
expenditure    6 715       4 993       4 739      21 802      15 529

payment          568         566         487       2 247       1 321

Profit from
operations    18 299       9 225      14 222      46 800      10 262


The preliminary 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:

                                        12 months       12 months
                                           31 Dec          31 Dec
Reconciliation of net income (US$000)        2005            2004

Net income attributable to equity
shareholders under IFRS                    38 538          18 793

Share-based payment compensation#           1 060           2 011

Exploration and evaluation costs*          (3 179)         (3 916)

Net income under US GAAP                   36 419          16 888

Movement in cash flow hedges during
the period                                (27 465)         (8 265)

Comprehensive income under US GAAP          8 954           8 623

Basic earnings per share under US
GAAP (US$)                                   0.59            0.15

Fully diluted earnings per share under
US GAAP (US$)                                0.57            0.15

Reconciliation of shareholders' equity

Shareholders' equity under IFRS           309 737         191 169

Exploration and evaluation costs*          (7 095)         (3 916)

Shareholders' equity under US GAAP        302 642         187 253

* Drilling costs of US$3.2 million relating to the underground development study
at Loulo have been capitalised under IFRS in the first half of 2005 (2004 full
year: US$3.9 million).  Under US GAAP, these costs have not been capitalised
since they did not relate to the addition of reserves as defined in SEC Industry
Guide 7.  A final feasibility study was completed in July 2005 which resulted in
the creation of additional reserves.  In the period subsequent to the final
feasibility study, the accounting treatment of costs on this project under IFRS
and US GAAP has been the same.

# These adjustments include differences between accounting for share-based
compensation under IFRS and US GAAP.  Prior to 1 January 2005, there was no
requirement to recognise share option compensation expenses under IFRS, although
there was such a requirement under US GAAP and APB 25.  The group adopted IFRS
2, accounting for share-based payment from 1 January 2005, in accordance with
the Standard's transitional provisions.  The method of calculation of the
expenses is different under IFRS and US GAAP, and an adjustment for US GAAP has
accordingly been made.


The financial information in this report has been prepared in accordance with
the group's accounting policies, which comply with IFRS and are consistent with
the prior period, except for the adoption of IFRS 2.

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

The group adopted IFRS 2, accounting for share-based payment from 1 January
2005.  The Standard requires an entity to recognise share-based payment
transactions in its financial statements.  The comparatives have been adjusted
accordingly.  The effect of the change is a charge of US$2.2 million for the
year ended 31 December 2005 and a charge of US$1.3 million for the year ended 31
December 2004.  There is no impact on equity.

This report does not constitute the company's full consolidated financial
statements for the year ended 31 December 2005, which will be approved by the
board and reported on by the auditors on or around 10 March 2006.


The group's hedging position which all relates to the Loulo project financing,
was as follows at 31 December 2005:

Maturity date                Forward     Forward
                               sales       sales
                              ounces     average


Year ended 2006               93 498         431

Year ended 2007              116 004         438

Year ended 2008               80 498         431

Year ended 2009               75 000         430

Total                        365 000         433

This represents approximately 37% of planned open pit production at Loulo for
the period that the project finance is in place.  In the current gold price
environment, it is the company's intention to take advantage of current spot
prices and roll out longer dated forward sales contracts at the appropriate

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


Life of mine scheduling at Morila anticipates gold production to be in excess of
500 000 ounces for 2006.  Plans are in place to complete the hard rock crushing
circuit at Loulo in the second quarter and the forecast gold production for the
year of 250 000 ounces is still considered achievable.  Randgold Resources is
targeting a 25% increase over 2005's attributable gold production at an
estimated total cash cost of approximately US$270/ounce, depending on successful
crusher commissioning and gold price assumptions which impact on royalties.
Work is underway on the Loulo underground project and US$20 million capital has
been budgeted for development and equipment in 2006.

A busy exploration programme is planned for 2006 with work being undertaken in
six African countries (Mali, Senegal, Burkina Faso, Ghana, Cote d'Ivoire and
Tanzania).  At Loulo, in addition to the underground project exploration will
concentrate on follow-up programmes on new targets and satellite ore bodies.

The company has significant cash resources of US$150 million to fund the Loulo
underground project as well as to pursue other growth opportunities.

DM Bristow                              RA Williams

Chief executive                         Financial director

6 February 2006

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 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 2004 which was filed in amended form with
the United States Securities and Exchange Commission (the 'SEC') on 27 October
2005. Randgold Resources assumes no obligation to update information in this
release. Cautionary note to US investors; the 'SEC' permits companies, in their
filings with the 'SEC', to disclose only proven and probable ore reserves. We
use certain terms in this release, such as 'resources', that the 'SEC' does not
recognise and strictly prohibits us from including in our filings with the '
SEC'. Investors are cautioned not to assume that all or any parts of our
resources will ever be converted into reserves which qualify as 'proven and
probable reserves' for the purposes of the SEC's Industry Guide number 7.

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                         

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