SOURCE: Randgold Resources Ld

July 10, 2013 06:24 ET

Randgold Resources: Gold downturn needs stakeholder partnerships

JERSEY, CHANNEL ISLANDS--(Marketwired - Jul 10, 2013) - Randgold Resources (LSE: RRS) (NASDAQ: GOLD)


Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
NASDAQ Trading Symbol: GOLD
("Randgold Resources" or "Randgold")


Johannesburg, 10 July 2013 - The recent drop in the gold price has
highlighted the need for governments of mineral-rich countries to
cooperate with mining companies in the optimal development of their
resources, says Randgold Resources chief executive Mark Bristow.

Speaking at a media briefing here, Bristow said the two parties should
be united in a common purpose but sometimes seemed like ships passing
each other in the night. "Governments are tempted to harvest the green
shoots before the enterprise comes to fruition; the gold mining
industry tends to exaggerate the risk without fully addressing its own
internal problems," he said.

This disconnect arose from the mistaken perception that gold mining
companies must have made extraordinary profits during the long bull run
in the gold price, Bristow said. In fact, with escalating costs
cramping margins, most gold companies had not managed to create real
value and at the height of the boom the industry had actually been ex
growth. The declining gold price meant that many gold mining companies
were now again having to fight for survival, as evidenced by a spate of
write-downs and abandoned projects."The pursuit of quality assets has led
gold companies away from their
traditional hunting grounds and towards regions which are more
prospective but present a greater risk. All these regions are now
competing with each other for mining investment, and while Africa has
the advantage of great mineral wealth, its competitors generally have
better infrastructures, greater skills pools and more sophisticated
economies," he said.

In order for African countries to attract mining investment and benefit
fully from their mining industries, they should participate fully in
the value creation process.

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