SOURCE: Randgold Resources

August 03, 2005 12:20 ET

RANDGOLD RESOURCES LIMITED ANNOUNCES INTERIM RESULTS

Jersey, Channel Islands -- (MARKET WIRE) -- August 3, 2005 --


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

REPORT FOR THE QUARTER AND 6 MONTHS ENDED 30 JUNE 2005

*  Randgold Resources delivers more profits and celebrates 10 'solid 
   gold' years
*  Loulo Gold Mine builds run of mine stockpiles and starts commissioning
*  Loulo underground development study doubles company's reserves
*  Tongon prefeasibility update underpins growth prospects

Randgold Resources Limited has 59.5 million shares in issue as at 30 June 2005

CONSOLIDATED INCOME STATEMENT

                    Unaudited   Unaudited  Unaudited
                      quarter     quarter    quarter
                        ended       ended      ended
                       30 Jun      31 Mar     30 Jun
US$000                   2005        2005       2004

Gold sales revenue     27 963      31 986     12 200
Cost of sales
Production costs        6 953      10 839      8 243
Transport and
refinery costs             62          67         46
Transfer to
deferred stripping
costs                   2 664         209       (580)
Cash operating costs*   9 679      11 115      7 709
Royalties               1 959       2 162        863
Total cash costs*      11 638      13 277      8 572
Profit from mining
activity*              16 325      18 709      3 628
Depreciation and
amortisation            2 307       2 595      2 286
Exploration and
corporate
expenditure             4 558       5 536      4 171
Profit/(loss) from
operations*             9 460      10 578     (2 829)
Interest received         364         325        230
Interest expense         (300)       (345)      (455)
Profit on financial
instruments                 -           -      7 653
Profit on sale of Syama     -           -      7 070
Other (expenses)
and income             (1 577)      1 850          6
Share-based payments(S)  (825)       (288)      (175)
Profit on ordinary
activities before
taxes and minority
interests               7 122      12 120     11 500
Income tax                  -           -          -
Minority shareholders'
interest                    -           -          -
Net profit              7 122      12 120     11 500
Basic earnings
per share (US$)          0.12        0.20       0.20(S)
Fully diluted earnings
per share (US$)          0.11        0.20       0.20(S)
Average shares
in issue (000)         59 481      59 394     58 547


CONSOLIDATED INCOME STATEMENT (continued)

                              Unaudited    Unaudited
                               6 months     6 months
                                  ended        ended
                                 30 Jun       30 Jun
US$000                             2005         2004

Gold sales revenue               59 949       27 474
Cost of sales
Production costs                 17 792       17 011
Transport and refinery costs        129           98
Transfer to deferred stripping
costs                             2 873       (2 968)
Cash operating costs*            20 794       14 141
Royalties                         4 121        1 942
Total cash costs*                24 915       16 083
Profit from mining activity*     35 034       11 391
Depreciation and amortisation     4 902        4 707
Exploration and corporate
expenditure                      10 094        7 187
Profit/(loss) from operations*   20 038         (503)
Interest received                   689          522
Interest expense                   (645)        (920)
Profit on financial instruments       -        1 806
Profit on sale of Syama               -        7 070
Other (expenses) and income         273       (1 168)
Share-based payments(S)          (1 113)        (347)
Profit on ordinary activities
before taxes and minority
interests                        19 242        6 460
Income tax                            -            -
Minority shareholders' interest       -            -
Net profit                       19 242        6 460
Basic earnings per share (US$)     0.32         0.11(S)
Fully diluted earnings per share
(US$)                              0.31         0.11(S)

Average shares in issue (000)    59 448       58 547


CONSOLIDATED CASH FLOW STATEMENT

                              Unaudited    Unaudited
                               6 months     6 months
                                  ended        ended
                                 30 Jun       30 Jun
US$000                             2005         2004

Profit on ordinary activities
before taxation and
minority interest                19 242        6 460
Adjustment for non-cash items    14 060       (9 485)
Working capital changes         (17 494)       1 779
Net cash generated/(utilised)
by operations                    15 808       (1 246)
Net cash utilised in investing
activities
  Additions to property,
  plant and equipment           (53 497)     (24 442)
  Financing of contractors      (13 071)           -
  Movements in restricted cash        -        3 882
  Disposal of Syama - net of
  cash disposed                       -        8 571
Net cash generated by
financing activities
  Ordinary shares issued            637           58
  Increase/(decrease) in
  long-term borrowings           28 439       (9 162)
Net decrease in cash and
cash equivalents                (21 684)     (22 339)
Cash and cash equivalents
at beginning of period           78 240      105 475
Cash and cash equivalents
at end of period                 56 556       83 136

CONSOLIDATED BALANCE SHEET

                     Unaudited   Audited   Unaudited
                            at        at          at
                        30 Jun    30 Dec      30 Jun
US$000                    2005      2004        2004
Assets
Non-current assets
Property, plant and
equipment              178 449   129 854      89 891
Cost                   205 136   151 639     103 977
Accumulated depreciation
and amortisation       (26 687)  (21 785)    (14 086)
Deferred stripping
costs                    6 871     8 514       8 301
Long-term ore
stockpiles              23 813    12 054       8 669
Total non-current
assets                 209 133   150 422     106 861
Current assets
Deferred stripping
costs                    5 140     6 370       6 211
Inventories and
stockpiles              10 089     9 762       5 272
Receivables             41 949    23 667      16 907
Cash and equivalents    56 556    78 240      83 136
Total current assets   113 734   118 039     111 526
Total assets           322 867   268 461     218 387
Total shareholders'
equity                 213 800   191 169     186 428
Non-current liabilities
Long-term borrowings    68 755    40 718       7 439
Loans from minority
shareholders in
subsidiaries             1 487     1 621       1 343
Deferred financial
liabilities             14 030    15 668       4 680
Provision for
environmental
rehabilitation           8 872     3 701       3 552
Total non-current
liabilities             93 144    61 708      17 014
Current liabilities
Accounts payable
and accrued
liabilities             15 923    15 584      14 945
Total current
liabilities             15 923    15 584      14 945
Total equity and
liabilities            322 867   268 461     218 387

The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).

*  Refer to other financial measures provided.

(S)  Reflects adoption of IFRS2: Share-based payment.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                         Number of   Share     Share
                          ordinary  capital  premium
                            shares  US$000    US$000
Balance -
31 December 2003        29 260 385   2 926   200 244
March 2004 quarter
Net loss                         -       -         -
Share-based payments             -       -         -
Share options exercised      3 000       -        13
Share split (a)         29 263 385       -         -
Capital reduction (b)            -       -  (100 000)
June 2004 quarter
Net profit                       -       -         -
Share-based payments             -       -         -
Movement on cash flow hedges     -       -         -
Share options exercised     20 600       1        44
Balance -
30 June 2004            58 547 370   2 927   100 301
Balance -
31 December 2004
(as previously
reported)               59 226 694   2 961   102 342
Adoption of IFRS2
share-based payments             -       -         -
Balance -
31 December 2004        59 226 694   2 961   102 342
March 2005
Net profit                       -       -         -
Share-based payments             -       -         -
Movement on cash flow hedges     -       -         -
Share options exercised    176 800       9       538
June 2005
Net profit                       -       -         -
Share-based payments             -       -         -
Movement on cash flow hedges     -       -         -
Share options exercised     35 400       2        88
Restricted shares
issued as remuneration #   161 735       8         -
Treasury shares
held by company #         (107 825)     (5)        -
Shares vested #                  -       -       735
Balance -
30 June 2005            59 492 804   2 975   103 703


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)

                       Other Accumulated       Total
                    Reserves     Profits      equity
                      US$000      US$000      US$000
Balance -
31 December 2003      (7 403)    (18 580)    177 187
March 2004 quarter
Net loss                   -      (5 040)(S)  (5 040)(S)
Share-based payments       -         172(S)      172(S)
Share options exercised    -           -          13
Share split (a)            -           -           -
Capital reduction (b)      -     100 000           -
June 2004 quarter
Net profit                 -      11 500(S)   11 500(S)
Share-based payments     175(S)        -         175(S)
Movement on cash
flow hedges            2 376           -       2 376
Share options
exercised                  -           -          45
Balance -
30 June 2004          (4 680)(S)  87 880(S)  186 428
Balance -
31 December 2004
(as previously
reported)             15 668     101 534     191 169
Adoption of IFRS2
share-based payments   1 321      (1 321)          -
Balance -
31 December 2004     (15 668)(S) 101 534(S)  191 169
March 2005
Net profit                 -      12 120      12 120
Share-based payments     288           -         288
Movement on cash
flow hedges            1 690           -       1 690
Share options
exercised                  -           -         547
June 2005
Net profit                 -       7 122       7 122
Share-based payments     823           -         823
Movement on cash
flow hedges              (52)          -         (52)
Share options
exercised                  -           -          90
Restricted shares
issued as
remuneration #             -           -           8
Treasury shares
held by company #          -           -          (5)
Shares vested #         (735)          -           -
Balance -
30 June 2005         (12 333)    119 455     213 800

(S)    Reflects adoption of IFRS2: Share-based payment.

Share split:  A special resolution was passed on 26 April 2004 to divide 
each of the ordinary shares of US$0.10 in the company into two ordinary 
shares of US$0.05 each.

Capital reduction:  A special resolution was passed at the annual general
meeting in April 2004, which was subsequently approved by the Court in 
Jersey, to extinguish accumulated losses by reducing the company's share 
premium account by US$100 million in order to permit future dividend payments.

#    Restricted shares were issued to directors as remuneration.  Of these
     shares, only 53 910 have vested, while the remainder of the shares 
     are still held by the company as treasury shares.  The 
     US$0.7 million represents the costs of the shares which have vested, 
     previously charged to other reserves.

OTHER FINANCIAL MEASURES

The company uses the following pro forma disclosures as it believes that 
this information is relevant to the mining industry.

Total cash costs per ounce are calculated by dividing total cash costs, as
determined using the Gold Institute Industry Standard, by gold ounces 
produced for all periods presented.

Total cash costs, as defined in the Gold Institute Industry Standard, 
include mine production, transport and refinery costs, general and 
administrative costs, movement in production inventories and ore 
stockpile, transfers to and from deferred stripping and royalties.  Total 
cash cost per ounce should not be considered by investors as an 
alternative to operating profit or net profit attributable to 
shareholders, as an alternative to other IFRS or US GAAP measures or an 
indicator of the company's performance.  The company believes that total 
cash cost per ounce is a useful indicator to investors and management of 
a mining company's performance as it provides an indication of a company's
profitability and efficiency, the trends in costs as the company's 
operations mature, a measure of a company's gross margin per ounce, by 
comparison of total cash cost per ounce to the spot price of gold, and a 
benchmark of  performance to allow for comparison against other companies.

Cash operating costs are defined as total cash costs excluding royalties.

Total cash operating costs per ounce are calculated by dividing cash 
operating costs by gold ounces produced for all periods presented.

Profit from mining activity is calculated by subtracting total cash costs 
from gold sales revenue for all periods presented.

Profit from operations is calculated by subtracting depreciation and
amortisation charges and exploration and corporate expenditure from 
profit from mining activity.

RECONCILIATION TO US GAAP

The preliminary condensed financial statements presented in this report 
have been prepared in accordance with International Financial Reporting 
Standards (IFRS), which differ in certain significant respects from 
Generally Accepted Accounting Principles in the United States (US GAAP).  
The effect of applying US GAAP to net income and shareholder's equity is 
set out below.

                                6 months    6 months
                                 30 June     30 June
Reconciliation of net income
(US$000)                            2005        2004
Net income under IFRS             19 242       6 460
Share-based payment compensation#    637       1 622
Development costs*                (3 186)          -
Net income under US GAAP          16 693       8 082
Movement in cash flow hedges
during the period                  1 638       2 376
Comprehensive income under
US GAAP                           18 331      10 458
Basic earnings per share under
US GAAP (US$)                       0.28        0.14
Fully diluted earnings per share
under US GAAP (US$)                 0.27        0.14
Shareholders' equity under
IFRS                             213 800     186 428
Development costs*                (7 102)          -
Shareholders' equity under
US GAAP                          206 698     186 428

*  Drilling costs of US$3.2 million relating to the underground 
   development study at Loulo have been capitalised under IFRS for 2005 
   (2004: US$3.9 million).  Under US GAAP, these costs may not be 
   capitalised since they do not relate to the addition of reserves as 
   defined in SEC Industry Guide 7.

#  These adjustments include differences between accounting for share-
   based compensation under IFRS and US GAAP.  Prior to 1 January 2005, 
   there was no requirement to recognise share option compensation 
   expenses under IFRS, although there was such a requirement under US 
   GAAP and APB 25.  The group adopted IFRS 2, accounting for share-based 
   payment from 1 January 2005, in accordance with the Standard's 
   transitional provisions.  The method of calculation of the expenses is 
   different under IFRS and US GAAP, and an adjustment for US GAAP has
   accordingly been made.

ACCOUNTING POLICIES

The preliminary condensed financial statements in this report have been 
prepared in accordance with the group's accounting policies, which are in 
terms of IFRS and are consistent with the prior period.

Joint ventures are those investments in which the group has joint control 
and are accounted for under the proportional consolidation method.  Under 
this method, the proportion of assets, liabilities, income and expenses 
and cash flows of each joint venture attributable to the group are 
incorporated in the consolidated financial statements under appropriate 
headings.  Inter-company accounts and transactions are eliminated on 
consolidation.

No segmental information has been provided, as the source and nature of 
the enterprise's risks and returns are not governed by more than one 
segment.

The group adopted IFRS 2, accounting for share-based payment from 1 
January 2005, in accordance with the Standard's transitional provisions.  
The Standard requires an entity to recognise share-based payment 
transactions in its financial statements.  The comparatives have been 
adjusted accordingly.  The effect of the change is a charge of 
US$1.1 million for the six months ended 30 June 2005 and a charge of 
US$1.3 million for the year ending 31 December 2004.

FINANCIAL INSTRUMENTS

No further ounces have been hedged during this quarter.

The group's hedging position which all relates to the Loulo project 
financing, was as follows at 30 June 2005:

                             Forward         Forward
                               Sales           sales
Maturity date                 Ounces          US$/oz
December 2005                 12 504             430
December 2006                 93 498             431
December 2007                103 500             435
December 2008                 80 498             431
December 2009                 75 000             430
Total                        365 000             432

This represents approximately 36% of planned open pit production at Loulo 
for the period that the project finance is in place.  The financial 
instruments are a matched hedge and any movements in marked-to-market 
valuation are accounted for in the other comprehensive income reserve.

Morila's production is completely exposed to spot gold prices.

COMMENTS

Profit from mining activity for the six months ended June 2005 compared 
to the comparative period ended June 2004 improved by 208%, mainly as a 
result of increased revenues from higher grades and better recoveries.  
The lower recoveries in 2004 were due to the commissioning of the plant 
expansion at Morila in 2004.  The quarter on quarter decrease in profit 
from mining is attributable to higher ounces sold in the March quarter 
resulting from sales from gold that was in inventory at December 2004.

Profit from mining activity for the current quarter of US$16.3 million was
significantly higher than the corresponding quarter in 2004 and down US$2
million from the previous quarter.

Production costs of US$6.9 million in the current quarter were down 
compared to the quarter ended 31 March 2005 mainly as a result of an over 
provision for diesel consumption at Morila in the previous quarter which 
was corrected in the current quarter.

Exploration and corporate expenditure for the six months is 
US$10 million, up from US$7 million for the corresponding period in 2004 
and is a reflection of increased exploration activity in 2005, 
particularly drilling.

The other expenses of US$1.6 million in the current quarter relate to the
correction of a previous misallocation at Morila.

Main balance sheet movements for the quarter ended 30 June 2005 are 
increases in property, plant and equipment, which relate to costs 
incurred on the development of the Loulo mine, an increase in ore 
stockpiles and an increase in receivables. The increase in receivables is 
due to further payments in advance relating to the Loulo construction 
contract to ensure that the contract stays on track.  A provision for the 
Loulo closure cost obligation and matching closure cost asset has also 
been recognised.

The decrease in cash and cash equivalents also relates to the continued 
funding of the Loulo project.  Increases in long-term borrowings result
from the drawdown of the Loulo project finance loan amounting to US$15 
million in the first quarter and a further US$10 million in the second 
quarter, as well as a partial draw down on the Caterpillar finance 
facility.  The Loulo project finance loan is now fully drawn.

Working capital changes on the cash flow statement reflect an increase in 
the ore stockpile balance at Morila, in line with the mine plan, as well 
as an increase in receivables such as reimbursable fuel duties at Loulo.  
The financing of contractors relate to the advances made to Loulo 
contractors. 

OPERATIONS

Morila Gold Mine

We have continued to work with the operators of the mine in order to 
return the mine to full production capacity.  The strategy has been to 
achieve consistent sustainable production and by the end of the quarter 
this approach appeared to be producing the desired results with plant 
throughput rising by almost 100 000 tonnes over the quarter, which is a 
12% increase quarter on quarter.  Gold produced for the quarter of 165 
359 ounces, was in line with forecast and was only slightly lower than 
the previous quarter when higher grades were fed to the mill.  Costs 
continue to be a concern and we are monitoring this very closely.

                       Quarter    Quarter    Quarter
                         Ended      ended      ended
                       30 June     31 Mar    30 June
US$000                    2005       2005       2004
Morila Results
Mining
Tonnes mined (000)       6 964      7 815      5 261
Ore tonnes mined (000)   2 002      1 646        889
Milling
Tonnes processed (000)     951        857        867
Head grade milled (g/t)    5.9        6.6        3.8
Recovery (%)              92.0       92.4       80.0
Ounces produced        165 359    167 272     85 081
Average price received
(US$/ounce)                430        428        332
Cash operating costs*
(US$/ounce)                146        166        213
Total cash costs*
(US$/ounce)                176        198        238
Cash profit (US$000)    40 813     46 773      9 070
Attributable (40%)
Ounces produced         66 144     66 908     34 032
Ounces sold             65 030     74 731     35 026
Cash profit (US$000)    16 325     18 709      3 628

(continued)                    6 Months     6 Months
                                  ended        ended
                                30 June      30 June
US$000                             2005         2004
Morila Results
Mining
Tonnes mined (000)               14 779       11 886
Ore tonnes mined (000)            3 612        1 776
Milling
Tonnes processed (000)            1 808        1 662
Head grade milled (g/t)             6.2          4.3
Recovery (%)                       92.2         83.2
Ounces produced                 332 631      192 196
Average price received
(US$/ounce)                         427          360
Cash operating costs*
(US$/ounce)                         156          183
Total cash costs*
(US$/ounce)                         187          208
Cash profit (US$000)             87 585       28 478
Attributable (40%)
Ounces produced                 133 052       76 878
Ounces sold                     139 761       76 411
Cash profit (US$000)             35 034       11 391

*      Refer other financial measures provided above.

One week into the 3rd quarter, the staff of the mining contractor, 
Somadex, commenced an unprocedural strike.  With assistance from national 
union officials, talks have continued to resolve the situation.  At the 
time of going to print, a settlement had been proposed.  Production 
forecasts have not been materially affected because of the availability 
of significant full grade ore stockpiles on the run of mine pad.

The operator of the mine, AngloGold Ashanti, through its subsidiary 
Anser, has undergone a re-structuring and major staff changes have been 
implemented.  An independent CEO has been appointed at Morila, answering 
directly to the Morila SA Board.

Loulo Gold Mine

Construction

The Loulo mine Phase I development made steady progress over the quarter 
with the initiation of dry commissioning of certain items.  The various 
phases of commissioning (dry, wet and finally, the feeding of low-grade 
ore) are expected to progress through end July - August.  The 
commissioning programme will run into August because of delays 
experienced with break-bulk shipping schedules in June and early July.  
The early onset of rains and associated construction issues necessitated 
the rescheduling of the Gara River dam wall and diversion earthworks.  
This is not expected to significantly impact on the Phase I commissioning 
and in turn has allowed the focus to remain on the completion of the 
tailings storage facility which is critical to complete before the onset
of production.

The oxide crushing circuit is 95% complete and dry commissioning of this 
part of the plant has commenced.  The first feed conveyor is complete 
ahead of schedule. Attention has focussed on the milling circuit and with 
mills and associated cyclone clusters installed, the installation of 
girth gears, gear boxes and mill motors are scheduled through July, which 
will allow both mills to be commissioned on oxide material and enhance 
the oxide processing capacity allowing the mine to meet its production 
build up to year end.

The commissioning of the carbon in leach circuit will commence in the 
last week of July.  Final process water storage and supply remains on a 
critical path with some temporary piping and pumping measures required 
again due to the late arrival of certain freight.  To ensure the 
commissioning programme starts in July, certain items have been air-
freighted to site.

All 15 Caterpillar generator sets are on site and commissioning of the 
first seven engines has commenced ensuring the availability of adequate 
power supply for Phase I.  In parallel with the Phase 1 commissioning 
programme, construction of the Phase II (hard rock circuit) has started.  
Infrastructure projects focussing on roads, auxiliary facilities, housing 
and other amenities are advanced and scheduled to be completed over the 
rest of the year.

Manpower build-up along with the selection and training of people is well
advanced.

Operations

At Loulo 0 mining activities focussed on building the soft ore run of 
mine pad with Loulo 0 waste.  Advanced grade control drilling at Loulo 0 
has been completed in the upper 80 metres of the pit.  Results show a 
shallow northerly plunge to high-grade mineralisation that is parallel to 
lineations mapped in the hanging wall sediments.  Results from below the 
Garra sediments, immediately north of the pit, indicate moderate 
mineralisation that could extend the pit some 50 metres.  Mining of the
Loulo 0 orebody is scheduled to commence following the completion of the 
hard rock run of mine pad and ahead of the commissioning of the Phase II 
(hard rock) circuit.  Until then waste rock will be mined to build up the 
run of mine pad extensions.

During the quarter, ore mining of oxide material in the Yalea pit 
commenced. Topsoil stripping exposed the ore zone, with low grade topsoil 
being used to line the run of mine pad and build a low-grade stockpile 
for commissioning, while the high-grade material was stored separately.  
Grade control trenches have been dug to help delineate the ore contacts 
within the saprolite.  Sampling of these trenches has shown the ore/waste 
contact to be visible and sharp in most cases.  A total of 220 000 tonnes 
at 4.5g/t for 32 000 ounces was stockpiled by quarter end.

PROJECTS AND EVALUATION

Loulo Project

Underground Development Study

SRK Consulting have completed a study examining the feasibility of 
mining, as two operations, the down-dip extensions of the Yalea and Loulo 
0 open pit orebodies from underground.

The results have exceeded our expectations.  The project is robust and as 
the potential to add significant mine life and value.

Mining method chosen is sub-level open stoping with or without post-fill
depending on the grade of the area. The study does not incorporate any 
data subsequent to the end of March, although further drilling has since 
taken place, the results of which are tabulated at the end of this 
section.  The following ore reserves form the basis for the current 
estimates relating to the two underground operations.

                   Million tonnes     Grade     Mozs
Yalea                        8.40      6.88     1.86
Loulo 0                      5.14      3.98     0.66
Total                       13.54      5.81     2.52

Operating costs have been based on a comparison to "mines of this type" 
with appropriate adjustments for local conditions.  Metallurgical 
testwork has confirmed that the deeper ore is no different from the 
shallower ore and that the current plant will be able to process the 
underground ore.

Initial capital estimate to steady state production (4 years) amounts to
approximately US$100 million.

Currently the schedule anticipates commencing the decline development in 
2006 and full production being achieved in 2009.  Combined, and on a 
stand alone basis, the two underground mines are estimated to produce 
approximately 1.8 Mozs (recovered) over a 10 year period with production 
subsequently continuing from Yalea.  Work is continuing to optimise the 
opencast to underground interface and mining schedules.

Subsequent to the data cut-off for the underground development study, 
further drilling was undertaken to both infill and extend the known
mineralisation.  At Yalea, 20 diamond drillholes were completed of which
the results of 13 have been received.  Deflections drilled off original 
holes into the high-grade bonanza material continue to return impressive 
results. Three holes were drilled below the present geological model in 
the south and central portions of the orebody. These three drillholes 
confirmed the continuity of the mineralised structure to a depth of 830 
metres below surface.  However, access to these depths would require a 
vertical shaft system.

                               Inter-
                              Section        Select-
          Hole                  width   Grade     ed
            ID    From      To    (m)   (g/t)  unit*
Yalea  YDH165w  554.44  559.66   5.22   9.29
Yalea  YDH159w  591.98  597.11   5.13  26.69
Yalea   YDH215  321.90  325.57   3.67   3.90
Yalea   YDH188  837.10  839.82   2.72   2.64
Yalea   YDH229  351.00  371.85  20.85   4.17   9.47m
                                           @ 6.27g/t
Yalea   YDH210  240.68  250.35   9.67   2.78
                259.80  267.12   7.32   4.72   4.03m
                                           @ 5.76g/t
Yalea   YDH211  199.00  205.90   6.90   3.85
Yalea   YDH219  299.15  302.65   3.50   5.52
Yalea   YDH214  331.10  333.30   2.20   7.64
Yalea   YDH218  313.80  330.16  16.36   3.04
Yalea   YDH216  405.65  425.20  19.55   1.87   4.05m
                                           @ 3.18g/t
Yalea   YDH187  923.61  925.36   1.75   3.19
Yalea   YDH220  662.00  672.00  10.00   1.68

*      Selection based on geology and grade

Tongon Project

Progress continues to be made towards resolution of the conflict in Cote
d'Ivoire and elections are planned for October 2005.  Field work remains 
on hold and will recommence following peaceful elections.

The June 2002 prefeasibility study on Tongon has been updated to reflect 
current market conditions.

The updated resource base now stands at 35.98 million tonnes at a grade 
of 2.77g /t for a total of 3.2 million ounces.

                                                Gold
                                  Grade      content
                           Mt      (g/t)      (Mozs)
Northern zone            5.29      3.47         0.59
Southern zone           30.69      2.65         2.61
Total                   35.98      2.77         3.20

All resources are in the inferred category.  A mineable resource has been
estimated only for the southern zone of 13.05 million tonnes at a grade 
of 3.54g /t for a total of 1.5 million ounces.  This has formed the basis 
of a preliminary economic assessment which indicates that the project 
meets our hurdle rates for further investment.

We have designed a 27 000 metre drilling programme to close the interhole
spacing to a 50 metre x 50 metre grid which will allow the completion of 
a final feasibility study and production decision within 2 years of re-
commencement of exploration and feasibility activities.

EXPLORATION ACTIVITIES

Our strategy this field season has been to hunt for new ounces with a 
focus on identifying new targets and opportunities.  As a result the main 
emphasis has been on our generative function in west and east Africa.  
This has led to the compilation of a new west African GIS (Geographic 
Information System) study which has been cascaded down to a country by 
country review and target generation exercise.  The results of this study 
have been the acquisition of seven new permits in three countries (2 021km
(2)) and the submission of an additional 15 applications (9 317km(2)) 
within five countries.  In total, we now have a total land package of 11 
537km(2) in six African countries and a portfolio of 141 targets.

At Loulo, five drill rigs continued to drill.  Three diamond core rigs 
tested Yalea, an RC rig completed advanced grade control and a RAB rig 
tested targets along the extensions of the main mineralised structures.  
In addition to the resource conversion and underground development 
associated with the known resources, drilling focus has also been 
on 'finding the next one' with further encouraging results being returned 
from targets in the south of Loulo (Faraba) and the Selou area 
(Sinsinko).  At Faraba, trench and RAB drilling have so far delineated 
2.5 kilometres of bedrock mineralisation within an overall four kilometre 
surface anomaly.  Recent RAB results include: 13 metres at 2.17g/t, 27 
metres at 1.57g/t and nine metres at 1.75g/t, supporting trench results. 
Geologically the target is similar to Yalea in that a north-south 
striking shear is developed at the contact between argillaceous quartzite 
and greywacke.  At Selou, follow-up RAB drilling on a 1.8 kilometre soil 
anomaly have returned anomalous values (plus 100ppb) over 30 metre 
widths, associated with a north - south fault.  At P64, a 1.5 kilometre 
plus 100ppb north northwest soil anomaly characterises the target.  
Previous work concentrated on only a 500 metre segment, which contains a 
weakly tourmalinised greywacke outcrop within the overall 1.5 kilometre 
target, where 16 diamond holes and 15 percussion holes were drilled.  
This work identified a 145 metre long, strongly mineralised zone.
Work has started testing the full 1.5 kilometre anomaly with trenching 
and RAB drilling, results were pending at the time of reporting.

Exploration has now commenced at Sitakili, 21 kilometres east of Loulo.
Geologically, mineralisation occurs within an antiformal sequence of
metasediments.  To date, three structural corridors intruded by dykes 
have been identified, each with a width of approximately 100 metre and 
strike of three kilometres with values up to 19g/t from rock chips.

In southern Mali, at Morila, further drilling at the Samacline target 
returned the following: SAM009 15 metres at 4.72g/t, SAM012 five metres 
at 4.33g/t and three metres at 5.84g/t, SAM014 five metres at 5.13g/t, 
and SAM019 two metres at 6.40g/t.  A small high-grade resource has been 
inferred.  However, this is believed to be part of a much bigger system 
which is open to the west.

In the Morila region, a diamond drilling programme has tested three 
targets, confirming a flat lying structural architecture and sediments 
with evidence of alteration similar to Morila but results received to 
date have shown no significant gold grades.  Elsewhere in southern Mali, 
a generative study has led to further ground acquisition.

In Senegal, work at Bambaraya has identified a wide zone of iron carbonate
alteration associated with mineralisation and new trenches 100 metres 
north and 150 metres southwest of the main zone have intersected 
significant mineralisation (BBTR04: six metres at 1.76g/t, four metres at 
5.48g/t and 12 metres at 4.06g/t; BBTR06: 12 metres at 2.34g/t).  Infill 
drilling at Sofia has increased our knowledge of the target.  We see a 
variation in the mineralisation from broad low-grade envelopes to narrow 
high-grade intercepts along the 3 400 metre anomalous corridor.  
Presently the inter-hole spacing is 400 metres and between the best holes 
drilled in terms of results (44 metres at 2g/t and six metres at 9.5g/t), 
there is a combined strike of 1 600 metres untested.  At Tombo, a small 
low-grade resource has been identified with limited upside potential.  In 
addition one new permit has been granted consolidating our groundholding 
around Sabodala.  Two further permits have been applied for and 
negotiations are being finalised with a Senegalese company on a new joint
venture opportunity.

In Burkina Faso, exploration has continued in the Kiaka and Danfora 
regions. However over the quarter, the emphasis has shifted to the Kiaka 
area.  This area lies along a regional structure which controls six known 
deposits containing combined resources of eight million ounces of gold.  
Nine applications have been submitted, three of which have been granted 
covering the southern part of this fault system.

In Ghana, work continued on generating new regional targets.  As a result,
applications have been made for four reconnaissance permits and due 
diligences have been undertaken on a number of joint venture 
opportunities.

In Tanzania, reconnaissance exploration continues both in the Mara and 
Musoma reenstone belts to understand the geology and structural 
architecture leading to the identification of targets.  This regional 
information combined with the acquisition and processing of geophysics 
over both areas of activity during the last quarter has enhanced our 
structural understanding and our ability to focus follow up work. RAB 
drill programmes are being motivated to test beneath complex regolith
profiles in favourable structural locations.  A new permit, Buhemba
South, surrounding the Buhemba mine, has been granted to Randgold 
Resources.

PROSPECTS

Loulo remains on track to produce its first gold in the third quarter, 
and it is anticipated that the company will meet its announced production 
targets for the year.  Results from the Loulo underground study confirms 
the long term growth potential of the mine.

With the updated economic review at Tongon, the company is now properly
positioned to proceed with a planned 'bankable feasibility' programme 
when the political situation in the Cote d'Ivoire returns to normal.

The company continues to evaluate value creating opportunities through
exploration, discovery and development, as well as leverage from 
acquisition opportunities.

The Company celebrates its 10th anniversary in August 2005.

D M Bristow                       R A Williams
Chief Executive                   Financial Director

4 August 2005

Registered office:  La Motte Chambers, La Motte Street, St Helier, 
Jersey JE1 1BJ, Channel Islands

Web-site:  www.randgoldresources.com

Registrars: Computershare Investor Services (Channel Islands) Limited, 
PO Box 83, Ordnance House, 31 Pier Road, St Helier, Jersey JE4 8PW, 
Channel Islands

Transfer agents:  Computershare Services plc, PO Box 663, 7th Floor, 
Jupiter House, Triton Court, 14 Finsbury Square, London EC2A 1BR

Investor and media relations:  For further information contact 
Kathy du Plessis on Telephone +27 (11) 728-4701, Fax +27 (11) 728-2547, 
e-mail: randgoldresources@dpapr.com

DISCLAIMER:  Statements made in this document with respect to Randgold
Resources' current plans, estimates, strategies and beliefs and other 
statements that are not historical facts are forward-looking statements 
about the future performance of Randgold Resources.  These statements are 
based on management's assumptions and beliefs in light of the information 
currently available to it. Randgold Resources cautions you that a number 
of important risks and uncertainties could cause actual results to differ 
materially from those discussed in the forward-looking statements, and 
therefore you should not place undue reliance on them.  The potential 
risks and uncertainties include, among others, risks associated with: 
fluctuations in the market price of gold, gold production at Morila, the 
development of Loulo and estimates of resources, reserves and mine life.  
For a discussion on such risk factors refer to the annual report on Form 
20-F for the year ended 31 December 2004 which was filed with the United 
States securities and exchange commission (The 'SEC') on 29 June 2005.  
Randgold Resources sees no obligation to update information in this
release.  Cautionary note to US investors; the SEC permits companies, in 
their filings with the SEC, to disclose only proven and probable ore 
reserves.  We use certain terms in this release, such as "resources", 
that the SEC does not recognise and strictly prohibits us from including 
in our filings with the SEC. Investors are cautioned not to assume that 
all or any parts of our resources will ever be converted into reserves 
which qualify as 'proven and probable reserves' for the purposes of the 
SEC's industry guide number 7.


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