SOURCE: Randgold Resources Ld

May 05, 2011 02:08 ET

Randgold Resources - 1st Quarter Results

JERSEY, CHANNEL ISLANDS--(Marketwire - May 5, 2011) -

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


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


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: 


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