SOURCE: Randgold Resources Ld

February 07, 2011 02:12 ET

Randgold Resources Ld - Q4 results and update

JERSEY, CHANNEL ISLANDS--(Marketwire - February 7, 2011) -

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


London, 7 February 2011 - Despite operational and political setbacks
in a generally challenging year, Randgold Resources boosted its profit
for 2010 by 43% to US$120.6 million on the back of a stronger Q4
performance which drove up attributable production by 30% to 132 099
ounces quarter on quarter.

Lifted by a rise in the gold price, Q4 gold sales were up 25% at US$145
million but would have been considerably higher had 23 428 ounces
produced at the new Tongon mine not remained unsold at year end due to
disruptions related to the disputed outcome of the Cote d'Ivoire
elections in November. The sale of these ounces would have added
US$21.7 million to annual profit.

The significant improvement in profit for the year has led the board to
propose an 18% increase to 20 US cents per share in the dividend. In
line with current best practice, shareholders will be asked to approve
the dividend at the annual general meeting.

Chief executive Mark Bristow said that given the scale and complexity
of the projects the company was developing, 2010 was always going to be
a tough year, and it proved even more difficult than expected due to
technical problems related to the expansion of the Loulo complex in
Mali and the unsettled situation in Cote d'Ivoire.
"In the face of these issues we nevertheless posted some substantial
achievements in 2010. Tongon was commissioned on schedule despite
difficult circumstances, pouring its first gold on 8 November and
producing 28 126 ounces by the end of the year. We completed the
feasibility study on Gounkoto, which confirmed the robustness of this
project, and open-pit mining has already started there, with ore being
stockpiled until the crusher station is ready by mid-year. The crushed
ore will be trucked to the nearby Loulo plant for processing. The
feasibility study on Kibali has been updated and this has now been
rescoped as a significantly larger project, currently envisaged as a 4
million to 6 million tonnes per annum operation over an 18-year mine
life. Over the next six months the focus will be on the design and
engineering of the infrastructure, the plant, the decline and vertical
shaft and the tailings facility. Continued good progress on the
pre-development work there means we are still on track for an earlier
construction start-up towards the middle of this year. In the
meantime, we have also maintained our extensive exploration programmes
and last quarter we had 14 rigs drilling at seven project sites in four
countries," he said."Loulo had its share of problems in 2010 but
its total production of
316 539 ounces for the year was in line with management's updated
forecast. It is clear that the increasing complexity of its
operations, and in particular the Yalea underground development, has
necessitated a careful re-look at issues such as mining strategy and
key service installations, and we've brought in the highly experienced
Ted de Villiers in the new position of general manager - mining, to
head the re-planning team."

Bristow said the Loulo complex's production for 2011 was expected to be
in line with the forecast of 420 000 to 440 000 ounces, of which
approximately 120 000 ounces should be contributed by Gounkoto in the
second half of the year. Underground production will be significantly
impacted in the first quarter while the Yalea redesign is being
completed. Development of Gara, the second underground mine at Loulo,
is continuing and ore tonnes from this operation are expected to build
up from the second quarter.

The joint venture at Morila, now a retreatment operation, is expected
to produce around 200 000 to 210 000 ounces in 2011 while Tongon should
contribute 260 000 to 270 000 ounces, provided the political situation
in Cote d'Ivoire does not impact on the mine much longer.
"On the basis of these projections, Randgold Resources' group
production for 2011 is forecast to be between 750000 and 790 000
ounces, which represents an increase of more than 70% on last year.
Management is targeting total cash costs per ounce, after royalties and
taxes, of less than US$600 per ounce for the group, assuming the oil
price, Euro-Dollar exchange rate and other input costs remain at
current levels," Bristow said.


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:



. Profit up 43% year on year and 14% on previous quarter
. Attributable production up 30% quarter on quarter but down 10% year
  on year
. Mining commences at Gounkoto after feasibility study confirms robust
. Deeper drilling at Gounkoto points to increased underground potential
  supported by a positive preliminary economic assessment
. Updated Kibali feasibility study confirms larger project and midyear
  construction start-up
. Tongon ramps up production on first stream despite challenges in Cote
. Loulo hedge commitments completed - full exposure to gold spot price
  going forward
. New executive to implement revised mining plan at Loulo
. Group attributable production forecast to increase by 70% in 2011
. Proposed dividend increase of 18%

Randgold Resources Limited ('Randgold') had 91 million shares in issue
at 31 December 2010

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