Randgold Resources Announces 1st Quarter Results

JERSEY, CHANNEL ISLANDS--(Marketwire -05/03/12)-

 

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

RANDGOLD RESOURCES MAKES STRONG START TO YEAR

Randgold Resources has posted a robust
performance for the first quarter of 2012 despite the challenges
presented by a coup in Mali, the expansion of its Loulo complex and the
stabilising of its new Tongon mine in Cote d'Ivoire.

Profit of USD104 million was up 126% on the corresponding quarter in
2011 while production of 165 443 ounces increased by 19% year on year.
However, in line with guidance, both figures were down by 28% and 13%
respectively on the previous quarter's record results. Group operating
costs of USD667/oz were in line with those of the previous year, and
the cash on the balance sheet of USD457 million remained substantial
despite significant capital expenditure during the quarter.

Flagship operation Loulo, where a third mill was successfully
commissioned, showed the benefit of its plant expansion programme in
improved throughput and recoveries. Throughput was ramped up steadily
to 330000 tonnes per month, in line with plan, and a phased expansion
to 450000 tonnes per month is being considered. Gounkoto, which
operationally is part of the same complex, has been established as a
separate corporate entity in terms of a new convention granted by the
state of Mali during the quarter. The one-year-old Gounkoto has now
recouped its capital.

Tongon had to contend with moving through transitional ore, stabilising
the link to the Ivorian national power grid and dealing with industrial
relations issues, but was trending positively at the end of the
quarter. The Morila joint venture again produced a solid set of
results.

In the Democratic Republic of Congo, construction started on schedule
at the Kibali project which, when completed, will be one of the largest
gold mines in Africa. Randgold owns 45% of the project, which it is
developing. Randgold will also operate the mine which is scheduled to
produce its first gold at the end of next year.

The company recently reported attributable reserves of 16.28 million
ounces of gold compared to 16.39 million a year ago, despite a 58%
increase in production last year. The overall reserve grade increased
from 3.78g/t to 3.84g/t in line with Randgold's emphasis on quality
over quantity.

Chief executive Mark Bristow says despite the company's full
operational and developmental load, it is still maintaining its
aggressive exploration programmes."There is a significant potential for
finding additional ounces at the
Loulo-Gounkoto complex, Tongon and Kibali, as well as for converting
their substantial resources to reserves. In addition, our greenfields
teams are evaluating the promising Boundiali and Dioala permits in Cote
d'Ivoire and developing a new footprint around the Kampti permit in
Burkina Faso. They are also looking beyond the known deposits on the
enormous Kibali lease area as well as further afield in the DRC," he
said.

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