Randgold & Exploration Company Limited - Randgold Resources Closes Out Hedges
ISIN : ZAE000008819
Share code: RNG
For further information call:
(CEO) Mark Bristow on +44 779 775 2288
RANDGOLD RESOURCES CLOSES OUT HEDGES
London, 3 September 2002 - Randgold Resources, the gold mining and exploration
business listed on the London Stock Exchange and Nasdaq, announced today that it
had closed out 148 500 ounces of call option commitments for the year 2004. The
only remaining hedges associated with the company are now those which form part
of the financing structure for Morila, its joint-venture mine in Mali.
Chief executive Dr Mark Bristow said the unwinding of the call options was in
line with the company`s strategy of maintaining the fullest possible exposure to
the gold price. "We`re fundamentally not hedgers, other than in those cases
where revenue streams need to be protected on capital projects or debt finance,"
he said
The call option commitments, which had an average strike price of US$353 per
ounce, were closed out at a net cost of US$2 million, payable in 2004. As these
commitments had in the past been valued on a marked-to-market basis, this cost
has already been provided for in prior quarters. The Morila financial
instruments are substantially fully matched hedges, so that their impact on the
company`s income statement has effectively been eliminated.
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 randgoldresources@dpapr.com
DISCLAIMER:
Statements made in this release with respect to Randgold Resources` current
plans, estimates, strategies and beliefs and other statements that are not
historical facts are forward-looking statements about the future performance of
Randgold Resources. These statements are based on management`s assumptions and
beliefs in light of the information currently available to it. Randgold
Resources cautions you that a number of important risks and uncertainties could
cause actual results to differ materially from those discussed in the forward-
looking statements, and therefore you should not place undue reliance on them.
The potential risks and uncertainties include, among others, risks associated
with: fluctuations in the market price of gold, gold production at Morila,
estimates of reserves and mine life and liabilities arising from the closure of
Syama. Randgold Resources assumes no obligation to update information in this
release.
Date: 04/09/2002 09:26:01 AM Produced by the JSE SENS Department
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