London, 28 May 2001 - Randgold Resources plans to produce 350 000 ounces of
gold in 2001 at a total cash cost of US$149/oz, which will make it one of
the lowest-cost producers in the world, says chief executive Dr Mark Bristow
in the company's annual report.
The report, published today, notes that this represents Randgold Resources'
40% share of the output of the Morila mine in Mali as well as the balance of
the production from Syama, which is in the process of being mothballed.
The company is currently engaged in identifying and developing further value-
creation resource opportunities, and recently started aggressive drilling
programmes at four gold projects in three West African countries. It has
an attributable resource base of 10.6 million ounces.
"The gold industry requires careful management of its ups and downs: it has
to focus on generating new growth opportunities in the good times, and
concentrate on the production of tangible value when the going is tough.
This means that it is essential for a resource company like ours to have an
integrated portfolio...a broad base of embryonic projects supporting a
production pinnacle," Bristow says.
Bristow says Randgold Resources is keen for the long-envisaged
rationalisation of its shareholder structure to take place as it believes
this would result in a rerating of the company and thus contribute to the
building of shareholder value.
Also in the annual report, chairman Roger Kebble says the board is fully
aware that the current structure is unsatisfactory and that the situation
needs to be resolved. A proposal to merge Randgold Resources and parent
company Randgold & Exploration through a share swop has been turned down by
the South African Reserve Bank but the companies are making further
submissions to the bank. "In the meantime, we continue to explore other
restructuring alternatives," says Kebble.
Issued on behalf of Randgold Resources by du Plessis Associates.
dPA contact Kathy du Plessis: Tel +27 (11) 728 4701,
Fax +27 (11) 728-2547 mobile (0) 83-266-5847,
e-mail randgoldresources@dpapr.com
Website: www.randgoldresources.com
For further details please contact:
(CEO) (Chairman)
Mark Bristow Roger Kebble
+44 (0) 779-775-2288 +27 (0) 83-444-3030
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