| Mon 5 Feb 2001, 0:00 | | Randgold Resources - Report For The Quarter |
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REPORT FOR THE QUARTER AND YEAR ENDED 31 DECEMBER 2000
RANDGOLD RESOURCES
Incorporated in Jersey, Channel Islands - Reg. No. 62686
* Profit before other charges of US$142 million for the year and US$12 million
for the quarter
* Maiden profits underscore Morila's world-class stature:
- 141 615 ounces gold produced in first two months
- Cash profit of US$25 million
- Cash operating costs of US$71/oz
* Mining operations suspended at Syama to preserve value of orebody
* Portfolio of projects offers sound future value prospects
Randgold Resources has 33 million shares issued as at 31 December 2000
ABRIDGED CONSOLIDATED INCOME STATEMENT
Unaudited Audited Unaudited Unaudited
12 months 9 months Quarter Quarter
ended ended ended ended
31 Dec 31 Dec 31 Dec 30 Sept
US$000 2000 1999 2000 2000
Gold sales 63 781 34 872 29 158 8 572
Other income 140 154 2 904 3 902 3 022
Total cash costs 61 896 44 097 20 863 11 415
Profit/(loss)
before other
charges 142 039 (6 321) 12 197 179
Depreciation and
amortisation 12 208 17 081 1 558 2 505
Impairment
Provision 74 606 45 000 34 606 -
Exploration and
corporate
expenditure 10 790 5 734 3 405 3 383
Interest and other 21 260 8 762 2 068 1 534
Profit/(loss) on
ordinary
activities
before tax 23 176 (82 898) (29 440) (7 243)
ABRIDGED CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
US$000 31 Dec 2000 30 Sept 2000 31 Dec 1999
Assets
Net current assets/
(liabilities) 68 701 95 479 (37 026)
Property, plant and
equipment - net 77 295 94 585 137 166
Other long term assets 368 287 483
146 364 190 351 100 623
Liabilities
Long term debt 43 558 55 734 15 741
Deferred liabilities on
financial instruments 2 933 4 796 7 969
Provision for
environmental
rehabilitation 3 616 1 938 1 713
Interest of outside
Shareholders 2 314 5 139 5 700
Shareholders' funds 93 943 122 744 69 500
146 364 190 351 100 623
COMMENTS
The highlight of the year was the commissioning of Morila, the first results of
which have met and in some cases exceeded expectations. The figures include
two months of contributions from Morila which started production in October
2000. The results are accounted for on a proportionate consolidation basis
i.e. 40% representing Randgold Resources' shareholding in Morila.
Since the year-end, the board has decided to suspend mining operations at Syama
pursuant to discussions with stakeholders about placing the mine on care and
maintenance. The sustained low gold price has made extraction of the Syama
orebody uneconomic and it has been decided to preserve the resource as an
option asset rather than mine it unprofitably. An amount of
US$35 million has been provided in the accounts at year-end as an asset
impairment write-down.
The company has continued to consolidate its position in the Morila region
where it has secured seven exploration permits. Drilling programmes are taking
place on lease at Morila, at the 3.6 million ounce Loulo Project in Mali West
and will commence shortly at the 1.7 million ounce Tongon Project in Ctte
d'Ivoire.
With the strong future cashflows from Morila, the conversion of Syama into an
option asset, a healthy balance sheet and a pipeline of promising projects,
Randgold Resources is well-positioned for growth.
On behalf of the board of Randgold Resources Limited
RAR Kebble DM Bristow
Chairman Chief Executive Officer
Full details of the results for the quarter and year ended 31 December 2000 are
available on our web-site : www.RandgoldResources.com or contact Kathy du
Plessis at Tel +27(11) 728-4701, Fax +27(11)728-2547, e-mail: gold@dpa.co.za,
PO Box 87386, Houghton, 2041, South Africa
RANDGOLD RESOURCES POSTS BIG PROFIT, POSITIONS ITSELF FOR NEW GROWTH
London, 2 February 2001 - Randgold Resources today reported an operating profit
of US$142 million for the year to December and said it was strongly positioned
to pursue new value-creation opportunities.
The company's results received a year-end boost from the new Morila gold mine
in Mali, which came into full production in October. During its first two
months of operation the mine produced 141 615 ounces of gold at a cash
operating cost of US$71/oz and made a cash profit of US$25 million. Randgold
Resources, which developed the mine and now holds a 40% interest in it, said
these results underscored Morila'S world-class ranking.
Earlier this week, Randgold Resources announced the suspension of mining
operations at its other Malian operation, the loss-making Syama mine, saying it
was not viable at the current gold price level. Syama is likely to be placed
on care and maintenance to preserve its orebody as an option against a
sustained recovery in the gold price. The care and maintenance programme is
expected to cost the company some US$30 million and it has provided a sum of
US$34.6 million in the past year's accounts to cover all rehabilitation
expenses, obligations to employees and debt.
In the meantime, the company is continuing to focus its exploration activities
on its priority areas of Morila and Loulo in Mali and Nielle in the Ctte
d'Ivoire, where its total gold resources already amount to 11.5 million ounces.
It further consolidated its position in the Morila region where it has secured
seven exploration permits, of which four are joint ventures with local
partners. New exploration programmes started in October 2000. On the Loulo
project, focused programmes, based on a revised geological model, have
continued on priority targets within a 12 km radius of the current 3.65 million
oz resource. In Ctte d'Ivoire Randgold Resources has negotiated the return of
North's share of the Nielle joint venture following that company's take-over by
Rio Tinto.
Chief executive Dr Mark Bristow said the 2000 results and recent developments
had confirmed Randgold Resources' ranking as a distinctive gold business with a
substantial holding of low-cost ounces, which was not just viable but vigorous
at any foreseeable gold price.
"Our strong cashflows from Morila, the fact that the Syama situation has now
been decisively dealt with, our healthy balance sheet, and our pipeline of
promising projects all augur well for the future. From this sound base we
shall continue to pursue opportunities for the creation of and addition to
value," he said.
For further details please contact:
CEO - Mark Bristow +44 779 775 2288(mobile)
Chairman - Roger Kebble +27-83-444-3030 (mobile)
Issued on behalf of Randgold Resources Limited by du Plessis Associates. dPA
contact Kathy du Plessis on Tel +27 (11) 728 4701, mobile (0) 83-266-5847 or
e-mail gold@dpa.co.za.
