SOURCE: Randgold Resources

January 23, 2017 11:33 ET

Randgold Resources Limited: Kibali ends challenging year with strong finish

JERSEY, CHANNEL ISLANDS--(Marketwired - Jan 23, 2017) - Randgold Resources (NASDAQ: GOLD) (LSE: RRS)

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

KIBALI ENDS CHALLENGING YEAR WITH STRONG FINISH

Kinshasa, Democratic Republic of Congo, Monday 23 January 2017 - The Kibali gold mine in the Democratic Republic of Congo has continued its performance improvement in the second half of the year after a tough first half.

Speaking at a briefing for local media here, Mark Bristow, chief executive of operator and part-owner Randgold Resources, said metallurgical process enhancements had improved the recovery rate, the new Kombokolo and Rhino satellite pits had added flexibility and throughput for the year was above nameplate. Grade would remain a challenge until the underground mine was fully commissioned later in 2017, as previously guided.

"At the same time the team has kept all Kibali's capital projects on track. The Ambarau hydropower station is being commissioned and will start generating power within a matter of weeks while work has begun on Azambi, the mine's third power plant, which is being built entirely by Congolese contractors. Construction of the underground mine is also on schedule and the commissioning of its shaft system in the third quarter of this year will complete the development of the Kibali complex," Bristow said. He noted that Kibali was funding its own capital expenditure and had started paying back shareholder loans.

"Kibali still has to contend with some critical issues, however, notably the delayed payment of the TVA refunds owed to it. While government has agreed to the refunds, and has made some payments, the recent political difficulties in the country have distracted the administration from the settlement of these issues and the amount outstanding had increased at the end of 2016. The situation is exacerbated by the foreign exchange risk posed by the continuing depreciation of the Congolese franc, and we trust it will be resolved now that the political transition has been settled. Notwithstanding the challenges we have faced, the mine and the provincial government have made good progress in developing a 'grand plan' for economic development of the region."

To view the full announcement, please click on the following link.

http://www.rns-pdf.londonstockexchange.com/rns/8836U_1-2017-1-23.pdf

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