London, 28 March 2014 - Randgold Resources aims to exceed one million ounces of consolidated* gold production in 2014 and is closing in on its long term goal of 1.2 million ounces by 2015, chief executive Mark Bristow says in the company’s 2013 annual report published today.
In 2013 Randgold increased production by 15% to 910 374 ounces at a reduced total cash cost of US$715/oz and Bristow said it was targeting a production increase of between 24% and 30% for this year, with costs coming down further to between US$650 and US$700 per ounce. The growth in production is expected to come from rising grades at the company’s flagship Loulo-Gounkoto complex in Mali, improved throughput at Tongon in Côte d’Ivoire, and the first full-year contribution from the recently commissioned Kibali in the Democratic Republic of Congo.
Bristow said the company’s management teams had closely scrutinised all mining plans to ensure that they were both optimal and deliverable, and that all operations would remain profitable at even lower gold prices.
“In the current market, our focus needs to be on profitability and not on maximising reserves. The priority is to replenish profitable ounces because we are increasing production as we access higher-grade ores,” he said. “Our objective is also to extend our 5 year rolling business plan to 10 years and l continue to look closely at all our projects against a range of gold price scenarios. In the meantime we have put in place a robust budget for 2014 and kept our five-year forecast intact.”
Given Randgold’s traditional commitment to growing through discovery and development, it would continue to invest substantially in exploration and had earmarked US$60 million for this purpose in 2014, he said.
Also in the annual report, chairman Philippe Liétard notes that in an industry in crisis, Randgold stood apart in 2013 by again producing profitable growth and continuing to secure its sustainability for years to come, even at lower gold prices.
Liétard said the successful commissioning of Kibali in one of the most remote regions in Africa, ahead of schedule and within budget, epitomises the qualities that made Randgold a great company: long-term vision and commitment; productive partnerships with host countries, communities and service providers; a high level of competence across the full range of technical financial and relationship disciplines; and a drive to deliver that was not daunted by even the most formidable challenges.
The 2013 annual report and accounts has been posted to shareholders and is available for viewing and/or downloading from Randgold’s website at www.randgoldresources.com. A copy of the 2013 annual report and accounts has been submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do. A copy of the 2013 annual report and accounts will also be submitted to Randgold’s annual general meeting to be held on Tuesday 6 May 2014.
Once Randgold has filed its annual report on Form 20-F for the 12 months ended 31 December 2013 with the US Securities and Exchange Commission, which is expected to occur on Monday 31 March 2014, that report will also be available for viewing and/or downloading from Randgold’s website and at www.sec.gov.
* including equity share of joint ventures