| Wed 12 Feb 2003, 16:08 | | Randgold Resources Accelerates Quest For Growth Op |
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Randgold & Exploration Company Limited
Reg No 1992/005642/06
Sharecode : RNG
ISIN: ZAE000008819
NASDAQ trading symbol: RANGY
(1) PRESS RELEASE
RANDGOLD RESOURCES ACCELERATES QUEST FOR GROWTH OPPORTUNITIES AS PROFITS SOAR
London, UK, 12 February 2003 - Randgold Resources, the London and Nasdaq listed
gold mining and development company, today posted a 475% rise in profit from
operations for the year to December and said it was using its growing cash
reserves to speed up its pursuit of new opportunities.
Net profit for the year was US$65.7 million (2001: US$17.8 million) and profit
from operations was US$74.6 million (2001: US$15.7 million) on gold sales
revenue of US$131.4 million. Earnings per share for the year were US$2.61
against US$0.58 in 2001.
The rise in results was boosted by exceptionally high grades mined at Randgold
Resources` Morila joint-venture in Mali during the September and December
quarters. Morila poured more than a million ounces of gold during 2002, one of
the few mines in the world to achieve this production feat. With total cash
costs of US$74/oz for the year, Morila also ranks as one of the highest-margin
gold producers in the world.
"Randgold Resources combines a sound operational base, generating strong cash
flows, with a promising prospect portfolio and a robust, effectively ungeared,
balance sheet," chief executive Dr Mark Bristow said.
"This means that we are one of the very few junior mining development companies
with the ability to invest substantially in its own future on a sustained basis.
We are funding exploration programmes in our target areas at a rate of US$10
million per year and these will continue to generate prospects for incorporation
in our development portfolio. In addition to this organic expansion thrust, we
have also stepped up our pursuit of corporate and third-party growth
opportunities. In fact, we are currently scrutinising every single million-ounce
plus gold project in the world to see if it meets our strategic criteria and
return targets."
Bristow noted that continuing exploration at Morila had already almost replaced
the reserves depleted by mining there, and also indicated further upside at the
mine. During the year, he said, Randgold Resources had increased its
groundholdings around Morila, defining 21 gold targets in this region;
discovered a new target near its Loulo project in Mali; acquired two new permits
and developed a portfolio of gold targets in Senegal; and re-established
operations in Tanzania. Its two advanced projects - Loulo in Mali and Tongon
in the Cte d`Ivoire - are both at feasibility stage.
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
(2) FORMAL ANNOUNCEMENT
Randgold Resources limited
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
REPORT FOR THE QUARTER AND YEAR ENDED 31 DECEMBER 2002
* Net profit of US$26.4 million for the quarter and US$65.7 million for the year
* Profit from operations up 475% on previous year
* Earnings per share of US$2.61 for the year
* Morila joins Million Ounce Club; Drilling results prove orebody is still open
* Exploration gains momentum in Senegal and expands into Tanzania
* Share volumes and price increase significantly after Nasdaq listing
Randgold Resources Limited has 27.7 million shares in issue as at 31 December
2002
Consolidated income statement
Unaudited Unaudited Unaudited Unaudited Audited
quarter quarter quarter 12 12
ended ended ended months months
31 Dec 31 Dec 30 Sept ended ended
31 Dec 31 Dec
US$000 2002 2001 2002 2002 2001
Gold sales
revenue 44 186 15 953 50 487 131 440 84 154
Cost of sales
Production
costs 8 351 9 677 5 353 26 689 47 798
Transport and
refinery
costs 185 107 201 588 547
Transfer to
deferred
stripping
costs (1 642) (1 429) (914) (5 043) (1 991)
Cash operating
costs 6 894 8 355 4 640 22 234 46 354
Royalties 3 133 1 217 3 571 9 185 5 801
Total cash
costs 10 027 9 572 8 211 31 419 52 155
Profit from
mining
activity 34 159 6 381 42 276 100 021 31 999
Depreciation
and amor-
tisation 2 333 2 901 2 630 8 765 7 097
Exploration
and corp-
orate ex-
penditure 5 336 2 493 5 503 16 686 9 187
Profit
from op-
erations 26 490 987 34 143 74 570 15 715
Interest
received 101 96 49 225 2 293
Interest
Expense (744) (1 156) (869) (3 686) (4 067)
Profit/(loss)
on financial
instruments 347 (244) 493 (346) 7 424
Other income and
(expenses) 126 4 163 (3 357) (5 255) (4 136)
Profit on ordinary
activities
before taxes
and minority
interests 26 320 3 846 30 459 65 508 17 229
Income tax - (11) - - (126)
Minority
shareholders`
interest 122 13 23 220 656
Net profit 26 442 3 848 30 482 65 728 17 759
Basic earnings
per share
(US$) 2.61 0.58
Average shares
in issue 25 147 820 30 517 646
Consolidated Balance Sheet
Unaudited Audited
At At
31 Dec 31 Dec
US$000 2002 2001
Assets
Cash and equivalents 59 631 6 683
Restricted cash * 4 526 4 474
Receivables 14 262 16 558
Inventories 11 601 9 743
Total current assets 90 020 37 458
Property, plant and equipment
Cost 168 540 163 076
Accumulated depreciation (92 104) (83 339)
Net property, plant and equipment 76 436 79 737
Other long-term assets 7 402 2 359
Total assets 173 858 119 554
Bank overdraft 1 170 1 708
Accounts payable and
accrued liabilities 20 564 22 075
Total current liabilities 21 734 23 783
Provision for environmental
rehabilitation 4 972 4 340
Liabilities on financial
instruments 7 530 2 452
Long-term loans 19 307 57 147
Loans from outside shareholders
in subsidiaries 1 330 1 335
Total long-term liabilities 33 139 65 274
Total liabilities 54 873 89 057
Shareholders` equity 118 985 30 497
Total liabilities and
shareholders` equity 173 858 119 554
Note: This is the amount relating to the N.M. Rothschild & Sons Limited debt
service reserve account. The amount is held in escrow for the partial repayment
of the Morila project loan.
Consolidated Cash flow Statement
Unaudited Audited
12 months 12 months
ended ended
31 Dec 31 Dec
US$000 2002 2001
Net cash generated from operations 70 633 21 270
Net cash utilised in
investing activities (5 516) (14 013)
Net cash generated by/(utilised in)
financing activities
Ordinary shares issued 33 203 1 739
Share buy back - (81 287)
Share issue/buy back expenses (3 895) (425)
(Decrease) / increase in
long-term borrowings (39 123) 11 775
Movement on financial
instruments (1 816) 4 278
Decrease in bank overdraft (538) (159)
Net increase / (decrease) in cash and
equivalents 52 948 (56 822)
Cash and cash equivalents at
beginning of period 6 683 63 505
Cash and cash equivalents at end of
period net of overdraft 59 631 6 683
The major portion of the ordinary shares issued in the 2002 financial year
reflects the impact of the Nasdaq listing in July 2002. The share buy back was
effected in September 2001.
The share issue expenses in 2002 are attributable to the costs associated with
the Nasdaq listing. The decrease in long term borrowings in 2002 is as a result
of the repayment in full of the N.M. Rothschild syndicated term loan and
revolving facility, as well as ongoing repayments of long term loans.
Consolidated Statement of changes in equity
Number Accumu-
of Share Share Other lated Total
ordinary capital premium reserves losses equity
shares US$000 US$000 US$000 US$000 US$000
Balance - 31 Dec 2000
33 076 629 3 307 240 742 - (150 108) 93 941
Prior year adjustment
2 388 515 2 903
Restated balance - 1 Dec 2001
33 076 629 3 307 240 742 2 388 (149 593) 96 844
Net profit
- - - - 17 759 17 759
Movement on cash flow hedges
- - - (4 133) - (4 133)
Share options exercised
997 404 100 1 639 - - 1 739
Share buy back and related expenses
(11 612 403) (1 161) (80 551) - - (81 712)
Balance - 30 Dec 2001
22 461 630 2 246 161 830 (1 745) (131 834) 30 497
Net profit
65 728 65 728
Movement on cash flow hedges
(6 548) (6 548)
Share options exercised
202 110 20 683 703
Issue of shares - public offering
5 000 000 500 32 000 32 500
Share issue and related expenses
(3 895) (3 895)
Balance - 31 Dec 2002
27 663 740 2 766 190 618 (8 293) (66 106) 118 985
Comments
The results for the year have been exceptionally good in terms of profit as well
as the balance sheet. Net profit for the year was US$65.7 million, which was up
over threefold year-on-year, and profits from mining activity were US$100
million compared to US$32 million for the comparative period in 2001. Higher
grades from Phase II of the Morila pit as well as the cessation of operations at
Syama at the end of 2001 contributed to this improvement. The increased net
profit is after expenditure on exploration and corporate costs, which included
expenditure on extensive drilling in the Cte d`Ivoire and Mali, provisions for
bonuses and leave and other staff costs plus the write-off of the outstanding
balance of the N.M. Rothschild syndicated term loan and revolving facility
raising fee which was being amortised over the life of the loan. The
comparative net profit for 2001 was boosted by profits on closing out of a
portion of the Syama hedge book.
As forecast last quarter, the high grades at Morila continued to have a
substantial positive impact on the Company`s results for the December quarter.
Ore grade milled, while down from the exceptional grades of the previous
quarter, remained high. Profit from mining activity was US$34.2 million for the
quarter ended 31 December 2002 compared to US$6.4 million for the corresponding
period in 2001.
The main balance sheet movements for the year ended 31 December 2002 are an
increase in cash, which reflects the higher attributable earnings from Morila as
well as the balance of the proceeds from the Nasdaq listing on the 11 July 2002,
net of the listing costs and long-term loan repayments. The main movement in
receivables reflects the collection of the proceeds from the sale of assets at
Syama in 2001. The increase in other long-term assets is attributable to the
increase in deferred stripping costs associated with the Morila pit, where waste
stripping has been in excess of the life of mine estimated stripping ratio. The
decrease in accounts payable and accrued liabilities mainly reflects the payment
of Syama creditors and a decrease in the short-term portion of long-term loans,
resulting from the repayment in full of the N.M. Rothschild syndicated term loan
and revolving facility in November 2002.
The increase in liabilities on financial instruments is the result of the
movement on the mark-to-market value of the financial instruments. The marked
decrease in long-term loans reflects the repayment in full of the outstanding
amount of the N.M. Rothschild syndicated term loan and revolving facility of
US$33 million in 2002. Long-term loans now largely comprise the attributable
portion of the Morila project loan and the Morila finance leases. Shareholders
equity was positively impacted by net profits for the period plus the proceeds
from the Nasdaq listing.
The Company received its fifth distribution from Morila of US$42 million at the
end of October 2002, giving a total of US$56.8 million distributed for the year
ended 31 December 2002. A further dividend of US$24 million was received at the
beginning of February 2003.
The Company`s return on equity for 2002 was 109%.
Accounting Policies
The abridged financial statements in this report have been prepared in
accordance with the Group`s accounting policies, which are in terms of
International Accounting Standards and are consistent with the prior period.
The consolidated financial information includes the financial statements of the
Company, its subsidiaries and the Morila joint venture.
Joint ventures are those investments in which the Group has joint control and
are accounted for under the proportional consolidation method and under this
method, the proportion of assets, liabilities, income and expenses and cashflows
of each joint venture attributable to the Group are incorporated in the
consolidated financial statements under appropriate headings. Intercompany
accounts and transactions are eliminated on consolidation.
Financial Instruments
The remaining financial instruments at 31 December 2002 are held by the Morila
company and relate to project financing. Randgold Resources` attributable share
is as follows :
* 112 522 ounces sold forward at a fixed price of US$275/oz over the period
January 2003 to December 2004;
* 39 836 ounces of purchased call options for the same period at prices between
US$350/oz and US$360/oz.
At present prices the percentage of production which is hedged is approximately
11% for the next 2 years. After 2004 all sales will be fully exposed to the
spot gold price. The facility is margin free.
Operations Morila
On 10 December 2002, Morila poured its millionth ounce of gold during that year,
one of the few mines in the world to achieve this. Infill drilling and drilling
on the margins has already almost replaced the depleted reserves as well as
making a significant contribution to replacing the resources.
For the year ended 31 December 2002, 1 052 816 ounces were produced at a cash
operating cost of US$52/oz and total cash costs of US$74/oz. This achievement
ranks Morila, on an annual production basis, among the largest as well as the
highest-margin producers worldwide.
As predicted, Morila produced another excellent set of results for the December
quarter as grades remained relatively high although lower than the previous
quarter. In total 325 273 ounces were produced at a cash operating cost of
US$54/oz and a total cash cost of US$78/oz. The head grade for the quarter
reduced to 17.1 g/t. Concurrent with the slightly lower grade, the milling rate
increased and in December a new record of 288 402 tons milled was achieved.
This outstanding performance was made possible by the identification of a high
grade zone trending southwest to northeast and the mining of a particularly high
grade pod in this payshoot. Geological analysis and modelling indicates that
there is a strong possibility of obtaining additional high grade zones within
this high grade axis. The mine is currently scheduling a further drilling
programme to test this opportunity.
A continual process of optimisation is ensuring that the orebody will be
developed to its full extent. It is planned to expand the capacity of the plant
during the year, through an increase in crushing capacity and four extra carbon-
in-leach tanks. Improved control of mill feed size is also expected to further
optimise mill throughput, leading to profitable treatment of previously
uneconomic lower grade tail ounces.
MORILA RESULTS
Quarter Quarter Quarter 12 months 12 months
Ended ended ended ended ended
31 Dec 31 Dec 30 Sept 31 Dec 31 Dec
US$000 2002 2001 2002 2002 2001
Mining
Tons mined
(000) 6 063 7 677 5 548 26 321 23 067
Ore tons
mined
(000) 542 753 849 3 230 3 429
Milling
Tons
processed
(000) 669 755 546 2 735 2 855
Head grade
milled
(g/t) (*) 17.1 6.6 27.7 13.4 7.5
Recovery
(%) (*) 88.4 91.8 88.1 89.3 92.4
Ounces
prod-
uced 325 273 144 189 428 421 1 052 816 631 650
Average
price
received
(US$/
ounce) 316 277 310 308 273
Cash
operating
cost (US$/
ounce) 54 98 28 52 84
Total cash
costs (US$/
ounce) 78 117 49 74 103
Cash profit
(US$000) 85 398 19 660 105 690 250 052 107 935
Attributable (40%)
Ounces
prod-
uced 130 109 57 676 171 368 421 126 252 660
Cash profit
(US$000) 34 159 7 864 42 276 100 021 41 666
(*) Head grade milled and recovery percentage for the quarters ending September
and December 2002 have been recalculated based on the `recovery plus residue`
method due to the extremely high variable head grades fed to the plant during
the quarter.
As indicated earlier, successful exploration has allowed almost total
replacement of the reserves and partial replacement of the resources. The
resource and reserve base for Morila as at end 2002 is tabulated below with the
comparison to last year`s figures.
MEASURED, INDICATED AND INFERRED MINERAL RESOURCES
Category Attribu-
Tons (Mt) Grade (G/t) Gold (Mozs) table
Gold
2002 2001 2002 2001 2002 2001 (Mozs)
Morila 40%
Measured 5.34 2.21 5.52 1.80 0.95 0.13
Indicated 27.00 34.13 4.32 4.53 3.75 4.97
Sub-total 32.34 36.34 4.52 4.37 4.70 5.10 1.88
Inferred 4.74 10.55 3.40 2.44 0.52 0.83 0.21
Total 37.08 46.89 4.37 3.93 5.21 5.93 2.09
PROVEN AND PROBABLE MINERAL RESERVES
Category Attribu-
Tons (Mt) Grade (G/t) Gold (Mozs) table
Gold
2002 2001 2002 2001 2002 2001 (Mozs)
Morila 40%
Proven 4.7 0.88 6.23 3.06 0.94 0.09
Probable 23.1 26.85 4.42 4.83 3.28 4.17
Total 27.8 27.74 4.72 4.78 4.22 4.26 1.7
Discontinued Operations - Syama
A number of proposals have been received from companies seeking to acquire
Randgold Resources` shareholding in the Syama Mine, placed on care and
maintenance one year ago. The proposals involve options to carry out due
diligence studies to evaluate the viability of the mine and, if exercised, will
result in cash payments as well as possible future gold production royalty
payments.
The proposals will be submitted for approval to the boards of Syama and Randgold
Resources in the first quarter of 2003. Should they fail to conclude in a
transfer of ownership, and the gold price does not rise to a substainable level
sufficient for economic operation to recommence, management will recommend a
phased disposal of the plant and equipment to complete the rehabilitation of the
mine.
The dispute with Rolls-Royce Power Ventures was resolved within the Company`s
expectation, in terms of which all legal process was withdrawn by the parties.
As at 31 December 2002, a total liability of US$2.7 million was outstanding in
the accounts of the Company. In terms of the settlement agreement this amount
will be paid in two equal payments in December 2003 and December 2004.
SYAMA INCOME STATEMENT
Unaudited Unaudited Unaudited Unaudited Audited
quarter quarter quarter 12 12
ended ended ended months months
31 Dec 31 Dec 30 Sept ended ended
31 Dec 31 Dec
US$000 2002 2001 2002 2002 2001
Gold sales
revenue - 1 494 - - 16 723
Cost of sales -
Production
costs - 2 351 - - 23 732
Termination
costs - 519 - - 1 470
Transport
and refinery
costs - 3 - - 135
Cash operating
costs - 2 873 - - 25 337
Royalties - 111 - - 1 053
Total cash
costs - 2 984 - - 26 390
Depreciation and
amortisation - - - - -
(Loss) from
operations - (1 490) - - (9 667)
Interest expense - - - - (1 009)
Loss/(profit)
on financial
instruments - (30) 363 (775) 7 638
Other income and
(expenses) (1 489) 2 943 (2 012) (4 777) (4 709)
Loss on ordinary
activities
before
taxes (1 489) 1 423 (1 649) (5 552) (7 747)
Income tax (11) - - 260
Net (loss)/
profit (1 489) 1 412 (1 649) (5 552)(7 487)
Projects and Evaluation
Tongon Prefeasibility
As noted last quarter, the current conflict in Cte d`Ivoire has led to the
postponement of a planned drilling programme to further the Feasibility Study
Type 3. In the meantime off-site investigative work is being progressed.
Current inferred resource stands at 34 million tons at a grade of 2.65 g/t, for
a total of 2.89 million ounces in situ.
Loulo Project - Updated Feasibility Study
Over the past year, work has focused on updating the feasibility study. After
re-optimisation and additional metallurgical testwork which confirmed the
orebodies positive reaction to a gravity separation process, a 3 000 metre plus
drilling programme was completed. The eleven-hole infill diamond drilling
programme on the Loulo 0 deposit confirmed grade continuity within the main
payshoots and reduced interhole spacing to an average of 50 metres within the
scheduled pit. Detailed mine planning and scheduling is in progress to
determine the optimum mining rate for the two pits. Work is focused on pursuing
specific opportunities which will further enhance the project. These relate to
optimisation of the mining rate, Government co-operation with off-mine
infrastructure and the possible supply of hydro-electric power. The Mali
Government has formed an inter-ministerial commission, which is now actively
addressing issues of access roads, power and water supply, as well as the
outstanding fiscal issues.
Current resource base is as follows:
MEASURED, INDICATED AND INFERRED MINERAL RESOURCES
Category Attribu-
Tons (Mt) Grade (G/t) Gold (Mozs) table
Gold
2002 2001 2002 2001 2002 2001 (Mozs)
Loulo 80%
Measured 17.77 17.76 3.88 3.92 2.23 2.24
Indicated 8.70 8.26 4.37 4.27 1.23 1.13
Sub-total 26.47 26.02 4.04 4.03 3.46 3.37 2.77
Inferred 7.66 7.66 3.26 3.24 0.80 0.80 0.64
Total 34.13 33.68 3.88 3.85 4.26 4.17 3.41
PROVEN AND PROBABLE MINERAL RESERVES
Category Attribu-
Tons (Mt) Grade (G/t) Gold (Mozs) table
Gold
2002 2001 2002 2001 2002 2001 (Mozs)
Loulo 80%
Proven 11.8 13.96 3.70 3.74 1.41 1.68
Probable 1.1 0.62 3.00 2.34 0.11 0.05
Total 12.9 14.58 3.60 3.68 1.52 1.73 1.2
The ore reserve has reduced slightly as a result of the design change to
shallower pits which has had the advantage of significantly reducing the
stripping ratios.
Exploration Activities
During 2002 exploration activities included the development of a new geological
model for Morila and subsequent drilling which demonstrates that the orebody is
still open; an increase in groundholdings around Morila mine to 3 003 km2 and
the definition of 21 gold targets; the discovery of a new target west of the
Loulo 0 deposit; acquisition of two new permits and a balanced gold target
portfolio in Senegal; the generation of new opportunities in Tanzania and
finally the curtailment of exploration work in Burkina Faso.
The business plan for 2003 is designed to expand our resource base in Morila and
Loulo; locate additional Morila-style mineralisation within the Company`s
permits surrounding the mine and prioritise selected targets for drilling;
advance our target portfolio in Senegal and re-establish activities in Tanzania.
On the Morila mine lease, remodelling of the orebody outlined the concept of a
flat-lying mineralised structure that is open in all directions. Drill testing
on the western margin appears to confirm this model intersecting Morila-style
mineralisation and returning intercepts of 29 metres to 63 metres grading 2.0 to
2.5 g/t. The furthest significant intercept locates 250 metres west of the
current pit. Exploratory drilling continues on the southern and eastern margins
of the orebody, which include significantly higher grade zones.
On the Loulo Project, the Loulo 0 West target locates 350 metres west of and in
the hanging-wall to Loulo 0. Infill trenching, geological mapping and re-
sampling of old boreholes within the hanging-wall has outlined a 700 metre zone
with grades of between 1g/t and 5g/t over widths of 8 metres to 10 metres. This
target will be drill-tested during the forthcoming quarter.
In Senegal, the Company acquired two new permits and now holds a contiguous
block of 1 200 km2 hosting a variety of targets including five with significant
gold intersections, multiple gold in soil anomalies and grassroots areas in
favourable geological settings. Field programmes are focused on target
definition and include detailed mapping and trenching of the Tomboronkoto target
where a quartz vein stockwork locates within an east - west structural zone in a
granodiorite.
In Tanzania, the Company has completed a comprehensive generative study of the
Southern Lake Victoria Goldfields and defined priority target areas for
acquisition. Eight prospecting license applications have been submitted.
Prospects
The strategic objective of improving the tradeability of the Company`s stock
through a secondary listing on Nasdaq is being achieved. In the light of the
significant increase in the share price, and to create still more liquidity, the
directors have decided to split the current 1 to 2 ratio of ADR`s to shares to a
ratio of 1 ADR to 1 ordinary share. The Company has initiated the process of
effecting the ratio change and a further announcement in this regard will be
made within the next 30 days.
Morila continues to generate substantial cash, providing a platform on which to
grow Randgold Resources. The recent drilling programme on lease indicates
potential for further additions to the current orebody. Morila is budgeting in
excess of 800 000 ounces at a total cash cost of below US$100/oz for 2003.
The updated feasibility study for Loulo will be completed in the first quarter
of 2003.
Over the last quarter of 2002, the Company has stepped up its pursuit of new
opportunities for expansion by acquisition or through a partnership in Africa
and elsewhere. It is also maintaining its organic growth drive through
aggressive exploration programmes designed to generate further prospects for
incorporation into its development portfolio. With its strong balance sheet and
improved share price, the Company is well-placed to take full advantage of
opportunities that meet its criteria.
On behalf of Randgold Resources Limited
R A R Kebble D M Bristow
Chairman Chief Executive
12 February 2003
Registered office:
La Motte Chambers, La Motte Street, St Helier, Jersey JEI IBJ, Channel Islands
Web-site: www.randgoldresources.com
Registrars:
Computershare Investor Services (Channel Islands) Limited, P.O. Box 83, Ordnance
House, 31 Pier Road, St Helier, Jersey JE4 8PW, Channel Islands
Transfer agents: Computershare Services Plc, P.O. Box 663, 7th Floor, Jupiter
House, Triton Court, 14 Finsbury Square, London EC2A 1BR
Investor & media relations: For further information contact Kathy du Plessis on
Telephone +27(11) 728-4701, Fax +27(11) 728-2547, e-mail:
randgoldresources@dpapr.com
(3) PRESS RELEASE
For further information call:
(CEO) Mark Bristow +44 779 775 2288
(CFO) Roger Williams +44 779 771 9660
EXCEPTIONALLY HIGH GRADES PROPEL RANDGOLD RESOURCES TO RECORD PROFIT
London, 12 February 2003 - Recent geological results indicate the possibility of
finding further high-grade areas within a high grade axis of the ore body at the
Morila gold mine in Mali, joint-venture partner Randgold Resources said today.
Exceptionally high grades mined there during the September and December quarters
propelled Randgold Resources to record profits and production levels for the
year 2002.
Last year`s performance was based on the identification of a high-grade zone
tending southwest to northeast and the mining of a particularly high-grade pod
within this payshoot. "Geological analysis and modelling now indicate that
there is a strong possibility of obtaining additional high grade areas within
this high-grade axis. The mine is currently scheduling a further drilling
programme to test this opportunity," the Company said.
Meanwhile, a continual process of optimisation is ensuring that the orebody will
be exploited to its full extent. As part of this process, the mine is planning
to increase its plant capacity during 2003 by increasing crushing capacity and
installing four additional carbon-in-leach tanks. Improved control of mill feed
size is expected to optimise mill throughput further, allowing the profitable
treatment of previously uneconomic lower-grade tail ounces.
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
Date: 12/02/2003 01:48:00 PM Produced by the JSE SENS Department
