JERSEY, CHANNEL ISLANDS--(Marketwire - May 5, 2011) -
RANDGOLD RESOURCES LIMITED Incorporated in Jersey, Channel Islands Reg. No. 62686 LSE Trading Symbol: RRS Nasdaq Trading Symbol: GOLD DETERMINED EFFORT DELIVERS STEADY PERFORMANCE GAINS London, 5 May 2011 - Despite the political crisis in Cote d'Ivoire and the underground re-engineering of its flagship Loulo complex, Randgold Resources (Randgold) again posted substantial profit and production gains for the first quarter of 2011. Profit of US$45.9million was up 43% quarter on quarter and 92% on the corresponding quarter of 2010 while gold production of 139403 ounces showed a 6% increase on the previous quarter and was 24% higher than the corresponding 2010 quarter. In the light of 2010's good financial results, the board had recommended an increased dividend of 20UScents per share (2009:17c) and its proposal was endorsed by shareholders at the annual general meeting earlier this week. Chief executive Mark Bristow said in an all-round solid first quarter performance, the star of the show had been the recently commissioned Tongon mine, which had excelled in all respects in very difficult circumstances."Throughout the disruption caused by the post-election turmoil in Coted'Ivoire - now fortunately settled - Tongon continued to operate to plan, producing 54968ounces at a total cash cost of US$411/oz for the quarter. Gold production was nearly double that of the previous quarter, when the mine was commissioned: ore mined was above plan and mill throughput was ramped up from 169000tonnes in January to 278000tonnes in March. The plan for the second quarter is to continue feeding the mills with oxide material and manage the ramp up along with the transition to sulphide ore feed and the completion of the hard rock crusher circuit scheduled for the end of the second quarter," Bristow said."As expected, Tongon has had an immediate positive impact on our group production and cost profile, and this will continue as the operation ramps up to its design capacity." Bristow said after a few tough quarters, when it had to contend with problems arising from the Yalea underground development and the plant expansion, the Loulo complex was making good progress. As noted at the end of last year, the Q1 focus would be on remodelling the Yalea development and refining the operating plans, as well as taking remedial actions where necessary, which would result in lower feed grades. As a consequence, production was down at 62149ounces (previous quarter: 80332ounces). The focus is now shifting to building up ore production to the planned production rate of plus 100000tonnes per month from Yalea by the middle of this year. In the meantime, Gara, the second underground mine at Loulo, has intersected the first development ore and plans to ramp up its production through the year to coincide with the completion of mining in the Gara pit. In any event, said Bristow, Loulo would effectively be transformed into a megamine when the nearby Gounkoto mine starts delivering ore to its plant which is scheduled for the middle of the year. Mining is already underway at Gounkoto, a single open pit operation based on a 2.8million ounce in-pit reserve, with significant upside potential. Production at the Morila joint venture, now a dump treatment operation, was slightly ahead of plan at 55716ounces. Considering the high gold price, options for prolonging its life are again being investigated and a feasibility study is underway on the retreatment of the tailings dam. Meanwhile, work continues on the development of an agribusiness to help support the local community when Morila eventually closes down. In the Democratic Republic of Congo (DRC), predevelopment work on the Kibali joint venture is on track and the start of mine construction is still targeted for the middle of this year. With probable mineral reserves already in excess of 10 million ounces - and the geologists still actively hunting for more - Kibali will be one of the largest gold mines in Africa when it goes into full production, currently targeted for 2014. In addition to its substantial operational and development activities, Randgold is maintaining a strong focus on the exploration drive that has historically powered its growth. It has recently concluded a joint venture at Nimissila, in the south of Mali near Morila, which includes three contiguous permits. Randgold has also been awarded the Dinfola permit adjacent to the Nimissila tenements, which brings its total holdings in the Bougouni belt to more than 800km2."This represents a significant new greenfields footprint for us in southern Mali, expanding an operational and influence sphere which already covers the high-potential gold districts of western Mali, eastern Senegal and northern Coted'Ivoire in West Africa as well as the equally prospective north eastern DRC in CentralAfrica," Bristow said. RANDGOLD RESOURCES ENQUIRIES: 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 Email: randgoldresources@dpapr.com Website: www.randgoldresources.com Click on, or paste the following link into your web browser, to view the full associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/9460F_1-2011-5-4.pdf This information is provided by RNS The company news service from the London Stock Exchange END
Contact Information: Contacts: RNS Customer Services 0044-207797-4400 http://www.rns.com