SOURCE: Randgold Resources

November 03, 2005 02:02 ET

Randgold Resources Limited Announces Report for The Quarter Ended 30 September 2005

Jersey, Channel Islands -- (MARKET WIRE) -- November 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 ENDED 30 SEPTEMBER 2005


* Profits up on last quarter and year on year
* Loulo pours its first gold and Phase 1 commissioned
* Loulo underground development project advances
* Deep drilling at Loulo confirms orebody continuity to 870 metres 
  below surface
* Good quarter for Morila
* New exploration season commences in West Africa and progresses in 
  Tanzania
* Equity offering to strengthen balance sheet


Randgold Resources Limited has 59.8 million shares in issue as at 
30 September 2005 (excluding the equity offering)




                         CONSOLIDATED INCOME STATEMENT

          Unaudited    Unaudited     Unaudited    Unaudited Unaudited
            quarter      quarter       quarter     9 months  9 months
              ended        ended         ended        ended     ended
            30 Sept      30 June       30 Sept      30 Sept   30 Sept
US$000         2005         2005          2004         2005      2004

Gold sales 
revenue      31 000       27 963        12 181       90 949    39 655

Cost of 
sales
Production 
costs         9 341        6 953         9 474       27 132    26 485
Transport 
and refinery 
costs            68           62            42          198       140
Transfer 
from/(to) 
deferred 
stripping      2 374        2 664       (1 522)       5 247    (4 490)
costs

Cash 
operating 
costs*        11 783        9 679         7 994      32 577    22 135
Royalties      2 158        1 959           863       6 279     2 805

Total 
cash 
costs*        13 941       11 638         8 857      38 856    24 940

Profit 
from mining 
activity*     17 059       16 325         3 324      52 093    14 715

Depreciation 
and 
amortisation   2 275        2 307         2 160       7 177     6 867
Exploration 
and corporate 
expenditure    4 993        4 558         3 603      15 087    10 790

Profit/(loss)  
from 
operations*     9 791       9 460       (2 439)      29 829    (2 942)

Interest 
received          308         364          242          997       764
Interest 
expense          (219)       (300)        (354)        (864)   (1 274)
Profit/(loss) 
on financial 
instruments        54           -         (347)          54     1 750
Profit on 
sale of Syama       -           -            -            -     7 070
Other (expenses) 
and income       (149)     (1 577)         533          124      (926)
Share-based 
payments (S)     (566)       (825)        (487)      (1 679)     (834)

Profit/(loss) 
on ordinary 
activities
before taxes 
and minority 
interests       9 219        7 122       (2 852)     28 461      3 608
Income tax          -            -             -          -          -
Minority 
shareholders' 
interest            -            -             -          -          -

Net profit/
(loss)          9 219        7 122       (2 852)     28 461      3 608

Basic 
earnings per 
share (US$)      0.15         0.12    (0.05) (S)       0.48   0.06 (S)
Fully diluted 
earnings 
per share (US$)  0.15         0.11    (0.05) (S)       0.46   0.06 (S)
Average shares 
in issue (000) 59 723       59 481        58 810     59 578     58 752


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

*   Refer to non-GAAP measures.
(S)  Reflects adoption of IFRS 2 : Share-based payment.






                      CONSOLIDATED BALANCE SHEET
                       Unaudited          Audited        Unaudited
                              at               at               at
                         30 Sept           30 Dec          30 Sept
US$000                      2005             2004             2004

Assets
Non-current 
assets
Property, 
plant and equipment      188 392          129 854          109 361

Cost                     217 354          151 639          129 275
Accumulated depreciation 
and amortisation         (28 962)         (21 785)         (19 914)

Deferred stripping 
costs                      5 513            8 514            8 690
Long-term ore 
stockpiles                27 516           12 054           10 894

Total 
non-current assets       221 421          150 422          128 945

Current assets
Deferred stripping 
costs                      4 124            6 370            6 501
Inventories 
and stockpiles            10 370            9 762            5 835
Receivables               50 491           23 667           23 542
Cash and equivalents      45 022           78 240           52 886

Total current assets     110 007          118 039           88 764

Total assets             331 428          268 461          217 709

Total shareholders' 
equity                   212 141          191 169          181 197

Non-current liabilities
Long-term borrowings      58 848           40 718            7 128
Loans from minority 
shareholders in 
subsidiaries               1 494            1 621            1 351
Deferred financial 
liabilities               26 479           15 668           10 037 
Provision for 
environmental 
rehabilitation             8 997            3 701            3 786
Total non-current 
liabilities               95 818           61 708           22 302

Current liabilities
Accounts payable 
and accrued 
liabilities               23 469           15 584           14 210

Total current 
liabilities               23 469           15 584           14 210

Total equity 
and liabilities          331 428          268 461          217 709





                    CONSOLIDATED CASHFLOW STATEMENT

                                     Unaudited           Unaudited
                                      9 months            9 months
                                         ended               ended
                                       30 Sept             30 Sept
US$000                                    2005                2004

Profit on ordinary activities 
before taxation and minority interest   28 461           3 608 (S)
Adjustment for non-cash items           14 429           (531) (S)
Working capital changes                (26 639)           ( 7 038)

Net cash generated from/
(utilised in) operations                16 251             (3 961)
Net cash utilised in investing 
activities
Additions to property, plant 
and equipment                          (60 798)            (57 409)
Financing of contractors               (17 930)                   -
Movement in restricted cash                  -               3 882
Disposal of Syama - net of 
cash disposed                                -               8 571
Net cash generated by/(utilised 
in) financing activities
    Ordinary shares issued               1 696               1 996
    Increase/(decrease) in 
    long-term borrowings                 27 563             (9 550)

Net decrease in cash and 
cash equivalents                        (33 218)           (56 471)
Cash and cash equivalents at 
beginning of period                      78 240            109 357

Cash and cash equivalents at end 
of period                                45 022             52 886

(S)  Reflects adoption of IFRS 2 : Share-based payment.




                       CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                    Accumu-
             Number of   Share   Share      Other     lated    Total
              ordinary capital premium   reserves   profits   equity
                shares  US$000  US$000     US$000    US$000   US$000
                                                                    
                                                                    
Balance -
31 December 2004                      
(as previously 
reported)   59 226 694   2 961 102 342   (15 668)   101 534  191 169

Adoption of 
IFRS2 
share-based
payments             -       -       -      1 321    (1 321)       -

Balance -
31 December 
2004        59 226 694   2 961 102 342 (14 347)(S) 100 213(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      176 800       9     538          -            -    547

June 2005
Net profit           -       -       -          -        7 122  7 122

Share-based 
payments             -       -       -        823            -    823
Movement on 
cash flow 
hedges               -       -       -       (52)            -    (52)

Share 
options 
exercised       35 400       2      88          -            -     90

Restricted 
shares issued 
as
remuneration # 161 735       8       -          -            -      8
Treasury 
shares held 
by company #  (107 825)     (5)      -          -            -     (5)
                                                          

Shares 
vested #              -      -     735      (735)            -      -

Balance  -
30 
June 2005    59 492 804  2 975 103 703   (12 333)      119 455 213 800

September 
2005                  -      -       -          -        9 219   9 219
Net profit

Share-
based 
payments              -      -       -        566            -    566

Movement on 
cash flow 
hedges                -      -       -    (12 503)           - (12 503)

Share 
options 
exercised       345 160     17    1 042         -            -   1 059

Balance -    59 837 964  2 992  104 745   (24 270)     128 674 212 141
30 
September 
2005
# 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.

(S) Reflects adoption of IFRS 2 : Share-based payment.

NON-GAAP MEASURES

The following measures are not prepared in accordance with GAAP. Total cash costs and total cash costs 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 data does not have a meaning prescribed by IFRS or US GAAP and therefore amounts presented may not be comparable to data presented by gold producers who do not follow the guidance provided by the Gold Institute.

Total cash costs, are calculated using the guidance provided by the Gold Institute. The guidance was first provided in 1996 and revised in November 1999. Total cash costs, as defined in the Gold Institute's guidance, include mine production, transport and refinery costs, general and administrative costs, movement in production inventories and ore stockpiles, transfers to and from deferred stripping, and royalties.

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

Total cash costs per ounce are calculated by dividing total cash costs, as determined using guidance issued by the Gold Institute, by gold ounces produced for all periods presented. 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, and a benchmark of performance to allow for comparison against other companies. Total cash costs and total cash costs 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 our performance.

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 shareholders' equity is set out below.

                                            9 months     9 months
                                             30 Sept      30 Sept
Reconciliation of net income (US$000)           2005         2004

Net income under IFRS                         28 461        3 608
Share-based payment compensation #               772        1 875
Exploration and evaluation costs *            (3 179)      (2 043)

Net income under US GAAP                      26 054        3 440
Movement in cash flow hedges during 
the period                                   (10 865)      (2 428)

Comprehensive income under US GAAP            15 189        1 012

Basic earnings per share under US GAAP (US$)    0.44         0.06
Fully diluted earnings per share under 
US GAAP (US$)                                   0.42         0.06


Reconciliation of shareholders' equity (US$000)

Shareholders' equity under IFRS              212 141      181 197

Exploration and evaluation costs *            (7 095)      (2 043)

Shareholders' equity under US GAAP           205 046      179 154

* Drilling costs of US$3.2 million relating to the underground development study at Loulo have been capitalised under IFRS in the first half of 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. A final feasibility study was completed in July 2005 which resulted in the creation of additional reserves. Following this final feasibility study, the accounting treatment under IFRS and US GAAP will be the same.

# 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, except for the adoption of IFRS 2.

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$1.7 million for the nine months ended 30 September 2005 and a charge of US$1.3 million for the year ended 31 December 2004.

FINANCIAL INSTRUMENTS

In the third quarter, given the high gold price environment, 12 504 ounces previously sold forward at US$430/oz for 2005 were rolled out to 2007 to further protect the Loulo project finance loan covenant ratios at that point. The price obtained was US$461.75/oz.

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

                              Forward                        Forward
                                sales                          sales
Maturity date                  ounces                 average US$/oz
Year ended 2006                93 498                            431
Year ended 2007               116 004                            438
Year ended 2008                80 498                            431
Year ended 2009                75 000                            430
Total                         365 000                            433

This represents approximately 37% of planned open pit production at Loulo for the period that the project finance is in place. A portion of the 12 504 ounces rolled forward was deemed speculative under IAS 39 and realised a credit to the income statement of US$54 000. The rest of 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 quarter ended September 2005 compared to the corresponding period ended September 2004 improved by 413% mainly as a result of higher throughput, improved grades and improved recoveries, plus the effect of a higher gold price resulting in revenues increasing by US$18.8 million, partially offset by the effect of deferred stripping charges in the current quarter and higher royalties payable on the increase in revenues.

Net profit for the quarter ended September 2005 of US$9.2 million was up 30% from US$7.1 million for the previous quarter.

Exploration and corporate expenditure for the quarter ended September 2005 of US$5.0 million was in line with the previous quarter but up on the comparative quarter ended September 2004 by US$1.4 million which reflects the increased exploration activity in 2005.

Main balance sheet movements for the 9 months ended September 2005 include the following :

* Increases in property, plant and equipment principally relate to the costs incurred on the development of the Loulo Mine. The original budget for the Loulo capital project was US$87 million including working capital and financing costs, but excluding power plant, pre-production and exploration. There have been changes in scope following the initial budget which resulted in a revision to US$101 million. The initial plant design was for 180 000 tonnes per month and this has been increased to 200 000 tonnes per month. This includes four additional CIL tanks. The other main element of the revised budget has been an acceleration in pre-production mining to allow for a more conservative stockpile build-up amounting to some US9.9 million additional capital. Actual costs incurred are some 12% in excess of this revised budget and total approximately US$113 million. The project was commissioned later than the accelerated start date resulting in additional owners' costs of US$3.9 million which have been included in the capital costs. Working capital costs of US$0.8 million above budget have been incurred. The balance of the extra cost is mainly shipping and exchange losses. The bulk of the capital expenditure has now been completed.

* An increase in ore stockpiles in line with the Morila life of mine plan.

* An increase in receivables comprising advances to the main Loulo contractor, as well as an increase in reimbursable fuel duties and TVA at Morila and Loulo. Reimbursable fuel duties and TVA amounted to US$17 million at 30 September 2005. The Company is working with the Mali Government to expedite re-payment of these amounts. Advances to contractors total US$17 million. A large part of this is secured and the remainder relates to project variations which are still to be agreed.

* The decrease in cash and cash equivalents relates to the continued funding of the Loulo project and the working capital tied up as referred to above.

* Increases in long-term borrowings results from the drawdown of the Loulo project finance loan amounting to US$25 million in 2005, offset by the short term portion of the loan of US$8.4 million included in accounts payable. The first repayment is due in June 2006.

* The increase in deferred financial liabilities reflects an increase in the negative marked-to-market valuation of the derivative financial instruments held as at 30 September 2005, due to the significant increase in the gold spot price, which was US$473.25 at 30 September 2005.

* The increase in the provision for environmental rehabilitation reflects the provision for the Loulo closure cost obligation of US$4.9 million which has been recognised.

OPERATIONS

Morila

The quarterly results from Morila were encouraging. While tonnes mined were affected by industrial action by the mining contractor's staff, a focus on mining ore combined with blending of higher grade stockpiles allowed tonnage and grade to be maintained. Plant throughput exceeded 1 million tonnes for the quarter exceeding last quarter's production by 60 000 tonnes and almost achieving design capacity of the expanded plant. Gold production exceeded last quarter's figures by 7 542 ounces as a result of this consistent plant performance.


Morila Results
                                            Quarter   Quarter  Quarter
                                              ended     ended    ended
                                            30 Sept   30 June  30 Sept
US$000                                         2005      2005     2004

Mining
Tons mined (000)                              2 976     6 964    6 910
Ore tons mined (000)                          1 194     2 002    1 350


Milling
Tons processed (000)                          1 010       951      839
Head grade milled (g/t)                         5.8       5.9      3.9
Recovery (%)                                   91.4      92.0     87.2
Ounces produced                             172 901   165 359   91 685
Average price received (US$/ounce)              443       430      355
Cash operating costs* (US$/ounce)               166       146      218
Total cash costs* (US$/ounce)                   197       176      242

Cash profit                                  42 648    40 813    8 309

Attributable (40%)

Ounces produced                              69 160    66 144   36 674

Ounces sold                                  69 616    65 030   34 377

Cash profit                                  17 059    16 325    3 324

*  Refer to non-GAAP measures.


Morila Results
                                            9 months       9 months 
                                               ended          ended
                                             30 Sept        30 Sept
US$000                                          2005           2004

Mining
Tons mined (000)                              17 755         18 776
Ore tons mined (000)                           4 807          3 126


Milling
Tons processed (000)                           2 817          2 500
Head grade milled (g/t)                          6.1            4.2
Recovery (%)                                    91.9           84.5
Ounces produced                              505 061        283 806
Average price received (US$/ounce)               437            358
Cash operating costs* (US$/ounce)                152            195
Total cash costs* (US$/ounce)                    182            220

Cash profit                                  130 233         36 789

Attributable (40%)

Ounces produced                              202 024        113 522

Ounces sold                                  198 542        110 789

Cash profit                                   52 093         14 716

*  Refer to non-GAAP measures.

The unprocedural strike which involved some 60% of the employees of the Morila mining contractor Somadex, was resolved over a period of some eight weeks with the assistance of the National Union, the Labour Inspectorate and Government. No concessions were made by the mining contractor. The strike will have no effect on planned production for the year.

Resource extension drilling in the south of the pit and in the pit wall has returned significant values extending the wireframe of the orebody. Further drilling is planned to define the additional resources.

Stronger emphasis is being placed on continued greenfields exploration around the mine. The team's main goal is to find another Morila within the 200km(2) mining lease area. A regional diamond drilling programme is being planned for commencement during the final quarter of 2005.

Loulo

Construction

First gold was poured on 27 September 2005. This event represents the successful conclusion of the first phase of construction of the Loulo plant. Continuous operations have been established on the Phase I development with mill throughput regularly exceeding 5 000 tonnes per day. All soft ore production areas have been brought into operation. The current focus is on steadily raising the throughput to design levels. It is planned to bring the second mill on stream early in November.

The CIL circuit is in operation. All circuit systems for reagent control and services to ensure efficient gold recovery are functioning well. The elution and electro-winning circuits are being commissioned currently as the mine builds up gold inventory. The first commercial shipment of bullion is due in November. This shipment will initiate a five-year tax holiday for the mine as prescribed by Mali's mining code.

All 15 generator sets have been fully commissioned and there is sufficient, stable and consistent power for mill startup and all other operational requirements.

Civil works on the Phase II development are progressing with the completion of the crushing circuit expected in the first quarter of 2006. The main equipment items for the Phase II circuit, comprising primary, secondary and tertiary crushers are due for delivery to site during November and December 2005.

Operations

Mining operations focused on the northern and southern parts of the Yalea pit during the first part of the quarter to build up a substantial ore stockpile ahead of the mill start-up. A total of 538 508 tonnes at 2.95 g/t for 69 880 ounces were mined from Yalea. A selective mining and stockpiling strategy was implemented in August which allows for the stockpiling of ore according to hardness and grade. Ore is currently being stockpiled at the Run-Of-Mine (ROM) pad prior to feeding to the process plant. Current ROM grade stockpiles comprise 360 261 tons at 3.72 g/t.

Manpower build-up is continuing as the mine is brought into commercial production and will continue through Phase II. Further on-the-job training is being given to local employees in the plant area.

PROJECTS AND EVALUATION

Loulo Mine - underground development

The board has approved the development of the underground project on the back of a bankable mining feasibility which was completed by SRK Consulting last quarter.

An experienced underground manager has been appointed to advance the development of the underground project and a review of critical issues is under way. This three month review will culminate in an integrated plan designed to optimise the value of the combined open pit and underground operations. At the end of this period,decisions will be made regarding such issues as: * Contract vs owner operator mining; * Review of capital requirements and scheduling; * Fast-tracking the access to the high-grade areas of Yalea; * Alternative access and ore transport facilities; and * Simultaneous or staggered development of the declines;

A total of 14 drillholes and two deflections were completed to further delineate the orebody at Yalea.

Hole ID    From     To Intersection  Grade            Selected
                          width (m)  (g/t)             unit*
YDH185   771.60 778.80         7.20   4.71       3.40m @ 6.70 g/t
YDH185w  660.50 678.85        18.35   8.20
YDH186   985.00 990.40         5.40   3.99      1.12m @ 10.10 g/t
YDH189   582.00 598.88        16.88  13.13
YDH191   676.00 698.38        22.38   7.79      16.30m @ 8.81 g/t
YDH212   234.60 237.17         2.57   2.56
YDH224   559.80 578.95        19.05   2.39       2.80m @ 4.93 g/t
         589.05 607.00        17.95  10.57     10.15m @ 17.16 g/t
YDH231   463.00 468.90         5.90   6.56
YDH233   539.70 540.85         1.15  14.23
YDH233w  530.30 534.15         3.85   6.99
YDH228   557.55 590.00        32.45   1.01      
         604.50 619.05        14.55   3.25       3.05m @ 8.32 g/t
YDH235   646.17 693.34        47.17   2.93      
         681.00 693.34        12.34   6.26      3.42m @ 13.33 g/t
YDH238   571.70 586.00        14.30  12.73
YDH240   536.15 547.36        11.21   6.38
YDH241   591.40 596.20         4.80   9.22      
         607.00 609.20         3.80  11.38      2.20m @ 27.21 g/t
YDH242   706.19 727.69        21.50   4.29      3.70m @ 12.80 g/t
         830.50 834.80         4.30   7.90      2.70m @ 11.91 g/t
*  Selection based on geology and grade

YDH 186 is now the deepest intersection with an approximate depth below surface of 870 metres and is demonstrating significant down-dip continuity of the orebody. The ore intersection width is 5.4 metres and the average grade 3.99g/ t, and this contains a high-grade zone of 1.12 metres at a grade of 10.1g/t. Drilling conducted in the southern portion of Yalea has confirmed the predicted higher grades with all three holes returning grades greater than 6g/t over intersection widths of between 4 and 22 metres. Of these, YDH191, which returned 22.38 metres at 7.79g/t including 16.30 metres at 8.81g/t, is particularily significant in that it confirms the vertical trend of a high grade shoot down to a vertical depth of 600 metres below surface. Drilling continues to further delineate the shoot.

Another recent discovery is that of a hangingwall splay to the main orebody developed in the north at depth giving duplicate intersections of ore grade, separated by several to tens of metres of anomalous material.

Tongon Project

In Cote d'Ivoire, elections have been postponed until next year as a result of administrative difficulties and delays in disarmament. As a result, the company does not expect to commence with the final feasibility study drilling programme on the Tongon Project until the political situation has stabilised.

EXPLORATION ACTIVITIES

The quarter saw a period of consolidation, data integration, interpretation, modelling and future planning in West Africa where the annual wet season bought a cessation to field activities. This work has formed the platform for the development of exploration programmes for the 2005/2006 field season. Conversely in East Africa field activities were accelerated and good progress has been made with exploration and especially in the ratification of the Tangold agreement, a joint venture with the government of Tanzania, to develop new mineral deposits covering a 2 692 km2 area of interest in the Kiabakari Maji-Moto region. Included in the circa are the Buhemba South and Kiabakari prospecting licences. The latter incorporates the old Kiabakari mine and adds an advanced project to our portfolio. Aircore drilling is underway in the Musoma belt on six prospecting licenses to test conceptual targets, within structural corridors covered by thick transported regolith. Diamond drilling has also commenced in the Mara belt, to test beneath recent cover basalts on extensions to mineralised structures hosting the Gokona, Nyabigena and Nyabirama gold deposits.

The geological teams are back in the field in West Africa and a busy final quarter to 2005 is scheduled with drilling at Loulo, Sitakili, Selou, Morila, Senegal and Tanzania all taking place.

At Loulo, four drill rigs are back in operation following a short break during the annual wet season. As well as the resource conversion work, where three diamond core rigs continue to define the high-grade payshoots at both Yalea and Loulo 0, exploration is concentrating on identifying new resources with an RC rig drill testing targets within the Loulo permit. The Faraba target is associated with a four kilometre, north-south striking plus 100ppb soil anomaly which hosts three targets (Faraba Main, Faraba East and Faraba West). Only two RC holes were completed prior to the rains as a follow-up to trench and RAB drill intersections. FARC002 drilled below trench FT009 (26 metres at 3.3g/t) returned 39 metres at 2.15g/t. FARC001 drilled 1.2 kilometres to the south returning five metres at 0.45g/t with similar haematite-silica alteration. Further RAB drilling is planned to evaluate the full extent of the four kilometre long soil anomaly and RC drilling will follow-up the trench and RAB results during the final quarter of 2005. RAB drilling returned anomalous results (14 metres at 0.56g/t) 500 metres north of the known mineralisation at P64.

At Sitakili, 21 kilometres east of Loulo field mapping and sampling have identified significant gold in porphyry intrusives over a 1.2 kilometre strike. A first phase reconnaissance drilling programme is planned for the final quarter of 2005.

In the Morila region, we are undertaking a hyperspectral study over Morila and surrounding area with the aim of identifying spectral and structural signatures associated with mineralisation. This will be incorporated with the results from remodelling of geophysical data and lead to the development of a three dimensional model and the identification of conceptual targets for drilling in early 2006.

In Senegal, four permits consolidate our groundholding on the Sabodala belt. Thirty-four targets are currently being evaluated of which two have been earmarked for further work. Of these, Bambaraya has shown significant surface mineralisation while further infill drilling is planned for Sofia.

In Burkina Faso, the focus has been on building a geological country model. The exploration emphasis has shifted to the Kiaka area which lies along an extensive regional structure hosting six known deposits with a combined resource of more than 8 million ounces. Nine applications have been submitted, seven of which have already been granted, covering the southern part of this fault system.

In Ghana, government approval is awaited on four applications, after which field work will commence.

GENERAL

On November 1, 2005, the Company priced a fully marketed global equity offering of 7,500,000 ordinary shares and American Depositary Shares ("ADSs") at US$13.50 per share. The underwriters have been granted an over-allotment option by Randgold Resources to purchase up to 1,125,000 additional ordinary shares. The funds will be used for the development of the Loulo underground mine, the Tongon pre-feasiblity study and new business opportunities.

With its extensive exploration portfolio, and a strengthened balance sheet, the company is now well-placed to continue with its development projects.


D M Bristow                                    R A Williams
Chief Executive                              Financial Director

3 November 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, P.O. Box 83, Ordnance House, 31 Pier Road, St Helier, Jersey JE4 8PW, Channel Islands

Transfer agents : Computershare Services Plc, P.O. Box 663, 7th Floor, Jupiter House, Triton Court, 14 Finsbury Square, London EC2A 1BR

Investor and media relations : For further information and media 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, development of Loulo and estimates of resource, 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 field with the Securities Exchange Commission on 30 June 2004. Randgold Resources assumes no obligation to update information in this release. Cautionary Note to US Investor: The United States Securities Exchange Commission (The "SEC") permits companies, in their filings with the SEC, to disclosedisclose 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 part 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.

A registration statement relating to the securities offered in the global offering has been declared effective by the Securities and Exchange Commission. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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