Randgold Resources Limited Reveals Production Up 15%

The shares of Randgold Resources (LSE: RRS) (NASDAQ: GOLD.US) added 221p to 4,414p this afternoon after the African-focused mining firm today announced its fourth-quarter and yearly results.  

The FTSE 100 member, which operates mines in Mali, Cote D’Ivoire and the Democratic Republic of Congo, reported 2013 gold production up 15% to 910,373 ounces. The results also stated production could rise by a further 25% during 2014.

The total cash cost per ounce for the year fell 3% to $715, while a 17% drop in the average price of gold caused profits to fall nearly $200m to $325m.

The statement also revealed an unchanged dividend of $0.50 per share.

Mark Bristow, Randgold’s chief executive, said:

“The highlight of the year was the early start-up of Kibali which, like all our mines, has posted a profit in its first quarter of operation, but we also delivered at our other operations, as well as on our safety and sustainability programmes, our host country development initiatives, and the integration of our logistics, accounting and reporting functions on a SAP platform.”

“Perhaps most significantly, we anticipated the shift in the gold market and were able to align our operations to the changing environment in good time, securing our sustained profitability at the lower gold price.”

Mr Bristow added that, although the current year would be “a tough one”, he was confident that a $330m capital investment would help “deliver on our objectives again”.

Of course, whether today’s full-year results as well as the wider prospects for the mining sector both combine to make Randgold a ‘buy’ right now is something only you can decide.

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> Douglas does not own any share mentioned in this article.