SOURCE: Randgold Resources Ld

February 03, 2014 07:20 ET

Q4 results and update

JERSEY, CHANNEL ISLANDS--(Marketwired - Feb 3, 2014) -

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


Cape Town, 3 February 2014 - Randgold Resources boosted gold
production to a new record level and reduced total cash cost per ounce
in 2013 while lining up its operations to exceed the million-ounce mark
for the first time this year.

Releasing its results for the quarter and year to December today, the
company reported production of 910373 ounces for 2013, up 15% on the
previous year, and forecast a continued rise in output over the next
five years, with production in 2014 expected to increase by between 25%
and 30% on the back of increasing grades at the Loulo-Gounkoto complex,
improving recoveries and throughput at Tongon and the recently
commissioned Kibali's first full-year contribution.

Total cash cost per ounce for the quarter was US$628, down 5% on the
previous quarter, and US$715 for the year, down 3% on 2012. On the
back of the higher production, gold sales of US$1.27billion for the
year were almost in line with the previous year, but a drop of 17% in
the average gold price received reduced profit from 2012's
US$510.8million to US$325.7million. The board nevertheless
recommended an unchanged dividend of 50UScents for shareholders'
approval. Randgold's cash balance improved quarter on quarter and it
ended the year with no net debt.

Chief executive Mark Bristow said 2013 was one of Randgold's best
years, as it made substantial advances on all fronts in the face of
multiple challenges."The highlight of the year was the early 
start-up of Kibali which, like all our mines, has posted a profit 
in its first quarter of operation, but we also delivered at our 
other operations, as well as on our safety and sustainability 
programmes, our host country development initiatives, and the 
integration of our logistics, accounting and reporting functions 
on a SAP platform," he said."Perhaps most significantly, we 
anticipated the shift in the gold market and were able to align 
our operations to the changing environment in good time, securing 
our sustained profitability at the lower gold price."

Reviewing Randgold's operations, Bristow said the Loulo-Gounkoto
complex in Mali - now one of the largest of its kind in Africa - had
delivered another stellar performance, beating its production guidance
by 20 000ounces to 580 000ounces and achieving a very creditable
US$34/oz improvement in total cash costs to US$704/oz.

In Cote d'Ivoire, Tongon completed almost all its efficiency
enhancement projects, and while throughput has increased, and is now
close to budget, recoveries are still below the targeted rate. A
further investigation has shown that the existing circuit is not
recovering enough of the gold associated with arsenopyrite, so the
flotation circuit will be expanded to capture most of the sulphide in
the ore.

Kibali started production on 24 September and sold its first gold in
October, ending the quarter well ahead of all its forecasts. Gold
production of 88200ounces was 46% more than scheduled while total
cash costs of US$464/oz were in line with expectations, given the
slightly higher grade milled. Profit from mining prior to
depreciation, interest and tax charges in Kibali's first quarter was
US68.3million and it ended the year with increased reserves and
resources. Kibali is a work in progress, with the development of its
second recovery circuit, three of the four hydropower stations and the
underground mine still underway.

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