RANDGOLD & EXPLORATION COMPANY LIMITED
For immediate release
RANDGOLD RESOURCES INCREASES Q2 PROFIT, CONSIDERS NORTH AMERICAN LISTING
London, 2 August - Despite the increased cost of an intensified
exploration programme, Randgold Resources boosted its net profit for the
June quarter by 19% to US$4.7 million on the back of another sound
performance by the Morila gold mine in Mali.
Morila, in which Randgold Resources has a 40% stake, produced 163 702 ounces
of gold in the three months to June at a cash operating cost of US$80/oz.
The company said the mine, which went into full production last October, was
settling down to a steady operation on competent ore, and was meeting all
production expectations.
Exploration activities were stepped up in May and June, and drilling
programmes have been completed in Burkina Faso and C te d'Ivoire, and on the
Loulo and Morila projects in Mali. The feasibility study on Loulo, which
was pended while Morila was being fast-tracked, is being updated.
Meanwhile care and maintenance procedures are being wound up at the Syama
mine in Mali with a plant clean-up that is scheduled for completion in
September this year. The company said today it was considering options for
the sale of its interest in Syama.
After getting the green light from shareholders last week, Randgold
Resources is proceeding with a buyback of 34% of its issued shares by 28
September this year. It said that last year's sale of part of Morila left
it with a substantial cash surplus, and that its share of the cash flow
generated by Morila was expected to be well in excess of future working
capital requirements. In line with its strategy of creating value and
sustaining superior returns on equity, and in keeping with its tradition of
using its balance sheet efficiently, the company therefore decided to return
value equally to all shareholders through a buyback.
The London-listed company also said today that it was considering a
secondary listing in North America to meet investor demand for facilitated
trading in its shares in that market.
Issued on behalf of Randgold & Exploration Company Limited and Randgold
Resources Limited 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 randgold@dpapr.com
Website: www.randgoldresources.com
For further details please contact:
(Chairman) Roger Kebble on +27 (0) 83-444-3030 or
+27 (11) 309-6037
(Randgold Resources CEO) Mark Bristow on +44 (0) 779-775-2288
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