SOURCE: Randgold Resources Ld

February 07, 2012 05:10 ET

'African risk' - political or managerial?

JERSEY, CHANNEL ISLANDS--(Marketwire - Feb 7, 2012) -

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

Cape Town, 7 February 2012 - The primary risk in building a business
in Africa lies not in the continent's socio-political environment but
in the need to structure a business model and a management team capable
of dealing effectively with the dynamics of an emerging market,
Randgold Resources chief executive Mark Bristow said at the African
Mining Indaba today."The first step in doing that is to recognise that the
big global
corporation approach with its sophisticated systems and risk analysis
is simply not appropriate to this environment," he said. "For a
business to operate successfully in Africa, it should be focused on the
pursuit of real value; performance-based and sustainable growth; and
the fostering of productive people and mutually beneficial

Bristow said Randgold was founded 16 years ago on the platform of an
African-focused growth strategy. Driven by this, it had since risen to
the top tier of the gold mining industry and ranked in the FTSE 100 and
Nasdaq 100 indices."From Day One, it's been our creed that you only create
real value in
the gold mining industry when you discover and develop your own
world-class deposits, instead of paying premium upon premium to get
more ounces through mergers and acquisition transactions. It's all
about discovery. Everything else - mining, processing, production -
are merely links in the chain that transforms gold in the ground to
money in the bank to benefit all stakeholders," he said."What is the
ultimate aim of any business? To be big? Or, to create
value? The answer should be obvious, yet if you look at the structures
and returns of many of the major gold companies, it's all too clear
that they would be more profitable if they were smaller and more


Chief Executive    Financial Director   Investor & Media Relations
Mark Bristow       Graham Shuttleworth  Kathy du Plessis
+44 788 071 1386   +44 1534 735 333     +44 20 7557 7738
+44 779 775 2288   +44 779 771 1338 


historical information contained herein, the matters discussed in this
news release are forward-looking statements within the meaning of
Section 27A of the US Securities Act of 1933 and Section 21E of the US
Securities Exchange Act of 1934, and applicable Canadian securities
legislation. Forward-looking statements include, but are not limited
to, statements with respect to the future price of gold, the estimation
of mineral reserves and resources, the realisation of mineral reserve
estimates, the timing and amount of estimated future production, costs
of production, reserve determination and reserve conversion rates.
Generally, these forward-looking statements can be identified by the
use of forward-looking terminology such as 'will', 'plans', 'expects'
or 'does not expect', 'is expected', 'budget', 'scheduled','estimates',
'forecasts', 'intends', 'anticipates' or 'does not
anticipate', or 'believes', or variations of such words and phrases or
state that certain actions, events or results 'may', 'could',
'would','might' or 'will be taken', 'occur' or 'be achieved'. Assumptions 
which such forward-looking statements are based are in turn based on
factors and events that are not within the control of Randgold and
there is no assurance they will prove to be correct. Forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Randgold to be materially different from
those expressed or implied by such forward-looking statements,
including but not limited to: risks related to the integration of
Randgold and Moto, risks related to mining operations, including
political risks and instability and risks related to international
operations, actual results of current exploration activities,
conclusions of economic evaluations, changes in project parameters as
plans continue to be refined, as well as those factors discussed in the
section entitled 'Risk Factors' in Randgold's annual report on Form
20-F for the year ended 31 December 2010 which was filed with the US
Securities and Exchange Commission (the 'SEC') on 31 March 2011.
Although Randgold has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Randgold does not
undertake to update any forward-looking statements herein, except in
accordance with applicable securities laws. CAUTIONARY NOTE TO US
INVESTORS: The SEC permits companies, in their filings with the SEC, to
disclose only proven and probable ore reserves. We use certain terms in
this release, such as 'resources', that the SEC does not recognise and
strictly prohibits us from including in our filings with the SEC.
Investors are cautioned not to assume that all or any parts of our
resources will ever be converted into reserves which qualify as 'proven
and probable reserves' for the purposes of the SEC's Industry Guide
number 7.

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